View Full Version : Looks like sombody at CBOT

18th October 2006, 18:41
didn't like Ted Butler's last article:


They lowered the pimping price for shorting gold and silver.

Gee...with all the money and inflation you'd think it would have RAISED the margin costs, like everything else. These guys can't let silver pass $12 before the election. Period. They couldn't let it stay above $13 last month. Silver wants to rise in spite of any macro economic scenario one can tout, because it is no longer, IMO, related to gold. It stands alone, and one day will leave other precious and base metals to their own devices. That may sound nuts. At this point what isn't? We'll just see what happens TOMORROW!

On the DUKAS Charts!

20th October 2006, 11:28
I look at it this way, "The blow out bargain price sale continues on silver!!!". I am accumulating as much as my funds are permitting and would love to see the price begin to rise, but in all actuallity I would perfer to not see any decent moves up until after Jan. 1 2007 that is when I can make my 2007 Roth contribution and the whole thing will be physical silver. So a real Chrismas present would be $10 silver that lasts through New Years. (And I would be happy with $12 silver too).

20th October 2006, 22:18
I hope you get your wish. Short positions increased this week:


So there are definately people on your side!

Can't wait for Butler's comments about this whopping increase!

22nd October 2006, 21:46
Silver wants to rise in spite of any macro economic scenario one can tout, because it is no longer, IMO, related to gold.

Richie, I appreciate your enthusiasm. What are you doing to make money on silver? What are you going to do if you're wrong and silver and gold and oil stay down for the next 6 mos?

My personal thesis has been that if the Dems win, all the effort that went into propping up the economy will go into reverse to bring it down and make them look inept. I'm increasingly starting to wonder if everything that rises really does converge and that even if the Dems take the House and/or Senate that the Fed et al. will have to hold down commodity prices at least long enough to cut interest rates to prop up the US economy. Once they cut rates it will be harder to keep the commodities down, but if global demand starts to lag by that time, even the excess liquidity isn't guaranteed to go into the golds and oils and silvers. You correctly brought attention to the recent Barclay's filing, which indicates that, if anything, they're gearing up to short all over silver. Whether its criminal or just good, old-fashioned trading, I can't tell you. I don't disagree with you about silver wanting to go up despite macroeconomics, but your explanation doesn't account for the volatility. Macroeconomics and politics do.

So, how will you profit from silver?

22nd October 2006, 23:14
I'm not convinced I will ever profit from it. I hold a bullion position just in case of some emergency...I don't have the balls to trade...but I sure do love the excitement surrounding silver. Gold and silver could wallow at their current levels or lower for the next year...possibly two. I plan to hold my position for years...I started buying at $5.90 and finished at 11.35. The entire reason I bought silver was Peak Oil...and if someone makes a huge discovery then the PM game for me is over. But that isn't going to happen...and then there is the dollar. And now the phoney DOW high. Something really stinks, and it ain't just oil...don't you think?

My hunch is the Gold/Silver ratio will continue to narrow...when the ratio hits 1/16 I will begin to convert some silver into gold. But here's the eventual problem - when gold and silver hit their highs, what will be next? Cash out? Into what? Perhaps by then we will have the new "Amero"...

I'm hoping to come out of the other side of this potential economic disaster with something fungable...and I have no illusions about profiting from trading along the way. Every coin or bar squirreled away, at whatever price now, is a coin or bar that can possibly rebuild a life at some future date if things turn out as bad as people think they will...it's that "insurance" that lets me sleep better at night, no matter what the daily price fluctuations are.

To be brutally honest, I don't think any of this is going to help. I think the game is over...