Silver, above ground, is more rare than gold! There is seven times as much gold above ground as compared to silver!

Wednesday, October 8, 2014

Silver Arbitrage?

Bill Holter Tuesday, October 7th

Silver closed last week under $17 for the first time in 4 years. Maybe we have in store another "event" like 2008, 2011 or 2013 where the "price" gets forced down which explodes demand to a point where shortages again show up? I have written several times before how a shortage should never ever show up in any real market if prices crash because of "selling". If real silver were in fact being sold then the market would be awash in silver and no shortage could exist. ...The last 3 episodes there were severe shortages which is your proof that it was not in fact real metal being sold, only paper contracts representing metal, this logic is not arguable.

I have written several times regarding the high and growing open interest in the COMEX silver contracts. It is my belief the Chinese via proxy are the longs and will at some point call for delivery. I was "reprimanded" by a very famous commodities trader telling me that the open interest was high only because of "spread trades". Spread trades only amount to 23,000 contracts which if subtracted would still leave us with 150,000 contracts or more of silver, still historically high. Something is just not right, the open interest in gold is near multi year lows while silver touched 6 year highs last week, "spreads" do not explain it.

I have also argued that both silver and gold have seen concentrated sales where 50% or more of global production is dumped within 24-36 hours which in a real market where real metal trades, could not ever happen. Who could have this size of metal and who would sell in a fashion to destroy their own price even if they did? The answers of course are no one, and no one. I get it, hedge funds are momentum traders and pile on in whatever direction any commodity is moving but gold and silver have now had access trades open lower or unchanged in 106 out of the last 110 trading days. This is a statistical impossibility. So it is what it is, but what does it mean, and what has silver trading way below the cost of production now unleashed?

MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet
Silver Shortage
GOLD is the money of the KINGS, SILVER is the money of the GENTLEMEN, BARTER is the money of the PEASANTS, but DEBT is the money of the SLAVES!!!