With gold recently strengthening and silver attacking multi-decade highs, today King World News interviewed James Turk out of Germany. Turk commented, “Eric, there are a lot of stories making the rounds talking about silver hedging. People should not be scared by them. When you actually analyze it and consider what is happening, the implications are bullish for silver.”
“The media is putting this talk about hedging in a bearish light, and normally they would be right to say hedging is bearish for the price of metal. But not now. Even if these reports of new hedges are true – and the rise in silver interest rates recently suggests as one possibility that some hedging may be taking place – the underlying bullish dynamics for silver are not negatively impacted.
In fact, the rise in silver interest rates itself suggests both a desperation to borrow physical silver at whatever cost to meet delivery demands and avoid a default as well as that physical silver is in such short supply people are willing to borrow it at unusually high rates. So rising silver interest rates here is bullish, but let’s consider what happens in a hedge.
There is no pressure on the spot price, as evidenced by the fact that spot silver has jumped more than $4 higher over just twelve days while these hedges were supposedly taking place – and of course silver is still in the extreme backwardation that I mentioned when it first happened last week…Click Here
In fact, the backwardation is steepening almost every day. The 13-cent backwardation to Dec 2015 I mentioned previously has now widened to 32-cents, meaning physical silver is becoming even more scarce – and the shorts are in an even more difficult position.
So even if a bullion bank is borrowing silver to sell spot to complete a hedge for a mining company, the important point is that the spot market is absorbing everything the bullion banks can throw at it, and even more importantly, silver remains in extreme backwardation which itself is growing. All of this is very bullish, but here’s another even more bullish interpretation of this hedging.
It’s bullish because it represents a recognition by the big bullion banks that are short silver that they are in trouble and need to cover their losing position.
So the commercial shorts in silver are about to be squeezed again and gold is going to hit new highs. All just part of a secular bull market in the metals, sit back and enjoy the ride.
Full article here: King World News
More on gold and silver:
– London Source: Asians Buying SLV to Take Delivery of Silver
– COMEX Silver Inventories Drop To 4 Year Low. COMEX Default Or Hunt Brothers Redux?
– This Past Week in Gold and Silver
– ‘US Silver Term Structure Inverts As Supply Tightens’ – Reuters Article On Silver Backwardation
– JP Morgan Silver Manipulation Explained (Part 1-4)
– Silver Bullion Backwardation Suggests Supply Stress
– Silver Lease Rates Rise Sharply – Bond Yields in Portugal Rise to Record
– Silver Is Already In Extreme Backwardation! If The Same Happens With Gold, Then The End Game For The US Dollar With Hyperinflation Is Near
– Perth Mint Has Run Out of 100 Ounce SILVER Bars for at least 6 Weeks!!!
– Silver Breaks Its Golden Shackles And More Signs of Silver Shortages
– $6,000 Silver and the ONE BANK
– Canada’s Biggest Bullion Bank Scotia Mocatta: ALL SILVER BARS SOLD OUT
– US Mint Sells Absolute Record 6.4 Million Ounces Of Silver In January, 50% More Than Previous Highest Month
– Eric Sprott: Expect $50 Silver, Gold Possibly $2,150 by Spring
– US Mint Reports Unprecedented Buying Spree Of Physical Silver
– BullionVault.com Runs Out Of Silver In Germany
– Silver: Shortage This Decade, Will Be Worth More Than Gold (!!!)
– Silver Derivatives – China and JP Morgan
– Max Keiser: Want JP Morgan to Crash? Buy Silver!
– Max Keiser: Crash JP Morgan – Buy Silver!
– JPMorgan Silver Manipulation Explained (Must-See!)
– Richard Russell: Possibility of Gold Breaking to New Highs
– Brazilian Billionaire Eike Batista Reaffirms $1 Billion Bid for Ventana Gold
– Americans Will Flock Into $5,000 Gold and $500 Silver
– Chinese Have A New Method To Buy Massive Amounts Of Physical Gold, Bypassing Comex And Any Form Of Delivery Limits And Problems
– ‘GoldNomics’: Cash or Gold Bullion?
– George Soros’ and John Paulson’s Biggest Holding Is GOLD
– China, Russia, Iran are Dumping the Dollar, Buy Gold And Silver
– Gold and Gold Mining Shares As a Percentage of Global Assets or ‘The Once In a Lifetime Ride’
And don’t forget to do this (!!!)…
– James G. Rickards of Omnis Inc.: Get Your Gold Out Of The Banking System
… or …
– US DEPARTMENT OF HOMELAND SECURITY HAS TOLD BANKS – IN WRITING – IT MAY INSPECT SAFE DEPOSIT BOXES WITHOUT WARRANT AND SIEZE ANY GOLD, SILVER, GUNS OR OTHER VALUABLES IT FINDS INSIDE THOSE BOXES!
– Tungsten Outperforms Gold, Returns 70 Percent In Last Year (And we all know exactly why!)
– Alert: Get Out of Your Dollar Assets Now!!!
– The Ultimate Cost of 0% Money
– These Central Banks Are Printing Money – Prepare Yourself
3 thoughts on “Massive Short Squeeze in Silver, Gold to Hit New Highs”
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