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View Full Version : Shorting Silver - Monetary or Industial Reasons?



SeekrBrnEvryMin
26th September 2009, 23:42
What do you know of the silver shorts?

Are they shorting silver for monetary or industrial reasons, or both?

If the big four shorts are banks, then wouldn't you say, "monetary?"

Which is it?

Would this help to answer the question of to what degree silver is money and to what degree it's an industrial metal?

valerb
27th September 2009, 00:08
What do you know of the silver shorts?

Are they shorting silver for monetary or industrial reasons, or both?

If the big four shorts are banks, then wouldn't you say, "monetary?"

Which is it?

Would this help to answer the question of to what degree silver is money and to what degree it's an industrial metal?

I think it is both. The banks are into it for the money and the government allows them to manipulate the market for the industrial users benefit. Others will argue it's all about Silver and Gold being the only real money and it must be suppressed. That's not my argument, but it's coming in other posts for sure.

SeekrBrnEvryMin
27th September 2009, 00:19
Heart-felt CONGRATULATIONS to you on the occasion of paying off your mortgage!









Moon the Bank!

(_*_)

valerb
27th September 2009, 01:28
Heart-felt CONGRATULATIONS to you on the occasion of paying off your mortgage!


Moon the Bank!

(_*_)

Thanks,

My balance was down to $3,900 and they actually sent an offer to re-finance my mortgage this week. It wasn't an offer for an equity loan, but just to re-finance. You would think that they would put a little logic in there program before wasting money sending out offers to people who are not likely to take them up on an offer like that.

DaleFromCalgary
27th September 2009, 08:57
"It wasn't an offer for an equity loan, but just to re-finance. You would think that they would put a little logic in there program before wasting money sending out offers to people who are not likely to take them up on an offer like that."

You'd be surprised how many people would re-finance for a larger amount in order to buy an SUV or large-screen TV. That is, after all, how the current economic crisis originated in the first place.

LETMYSILVERGO
27th September 2009, 09:11
And they would charge you around $1,00.00 fee to re-fince-- do a title search,
get an appairsal, to see if your home is worth the $4,000-- sounds crazy to me

SeekrBrnEvryMin
27th September 2009, 12:17
I think it is both. The banks are into it for the money and the government allows them to manipulate the market for the industrial users benefit. Others will argue it's all about Silver and Gold being the only real money and it must be suppressed. That's not my argument, but it's coming in other posts for sure.

Is the banks' end reason for shorting accumulation?

valerb
27th September 2009, 18:05
Is the banks' end reason for shorting accumulation?

Accumulation of money, by manipulation of the market.

There is no doubt that with all of the money these banks have made over the years, they do not have a reserve to cover the potential short sales they are facing. If they get burned, they will either default or it will be another government bailout.

SeekrBrnEvryMin
27th September 2009, 18:35
Accumulation of money, by manipulation of the market.

There is no doubt that with all of the money these banks have made over the years, they do not have a reserve to cover the potential short sales they are facing. If they get burned, they will either default or it will be another government bailout.

Accumulating what "money?" FRNs?

deuce
27th September 2009, 21:48
Shorting Silver and gold is very lucrative if you are well capitalized. Thats why the banks do it. The retailers and funds are highly levered in contracts. The high leverage and time component of a futures contract keeps them from building a base at a good price. They go all in trading breakouts looking for a big payday. In other words buying high. The banks sell into this to keep the price down. Eventually the pain becomes too great for the specs. They can't withstand the price going too far against them because they went all in at only a few price points with high leverage. Stop losses and margin calls are tripped and the money goes to the banks.

valerb
27th September 2009, 22:02
Accumulating what "money?" FRNs?

As long as you can trade FRN's for Gold and Silver, it is still money.

SeekrBrnEvryMin
27th September 2009, 22:11
As long as you can trade FRN's for Gold and Silver, it is still money.

What I'm trying to find out is the object of banks shorting silver. What wealth do they seek?

valerb
28th September 2009, 09:42
What I'm trying to find out is the object of banks shorting silver. What wealth do they seek?

They buy high and sell low, that's the nature of our manipulated market. Since they have been doing it successfully many, many, many times, they have made a fortune at this racket. It's only when there is a constant stream of new buyers bidding the prices higher and higher, that the shorts will get burned, assuming many of these longs demand delivery. So the shorts will have to buy back their contracts at ever increasing prices or gamble that they can manipulate the market back down.

So as long as the market is not running uphill, the shorts will continue to make money.