Posted on 09/24/2011 8:24:30 AM PDT by blam
Apparently the CFTC (in their next meeting in October) will be discussing the imposition of a strict, 1500-contract position limit in silver. It wouldn’t happen in October, but the timeline would be discussed: you know how committees work.
Any such imposition would (I guess) force JPM to divest themselves of most of their gigantinormous short position.
While I still give credence to the rumour about JPMs lopsided derivative position that would wipe them out if Silver is over 36/oz for 60 days - maybe the CFTC is starting to do its job of regulating the silver market. As JPM is being sued for manipulation it would smack of misprison for the CFTC not to do anything.
So JPM is running scared, and is burning the paper price to buy physical Silver cheaply.
In summary: my preferred characterisation of the Silver market is that of a vastly underpriced commodity held down by paper manipulation. This manipulation has multiple possible end-scenarios: the most obvious one is when the market runs out of physical silver because it’s so underpriced. So we should *buy silver until our ears bleed*.
Hope this proves helpful.
Well, I confess that I bought about $500 worth of silver eagles at $40 each a couple weeks ago, and two morgans at the VERY peak for about $45.
But the lions share of my silver was purchased below $20. And being in this for the long haul, I may need to go big again.
—No, this is just what the Fed needs in order to start the printing press again. Get commodities way down, so inflation looks like it is no longer a problem and that to contain the price of goods from going to high.—
I think there is some truth to that. It is said that the time to get out of any market is when everybody is into it. One guy said, many decades ago, that when his shoe shine guy was giving stock market advice, he knew it was time to sell.
And the converse is true. When “everybody knows” that only a fool would actually buy a house or stock or whatever, it’s time to go in big. It’s pretty much hit bottom.
I am buying at spot and buy when I see it pull back on the ETF.
I have some physical metals but most of it is in ETFs.
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