Silver on the See-Saw
As we pointed out to you last week, the Commercials had just then started to go net short. This week they added some more, and are now net short 29,221 contracts. They will be able to add any number without risk as the CFTC looks the other way while the bullion banks underwrite any losses which they may incur. The banks' risk, of course, is underwritten by us. The idea being to so overwhelm the longs by shorting a number of contracts well beyond any reasonable number of longs. They just keep pouring short contracts into the bucket in which sit the longs upon a ladder until they are so flooded that they must jump off and hope to swim to nowhere. At this critical juncture the commercials then close out their short contracts and rake in more millions. Every time.
As shown it gets critical when the number of commercial short positions gets around 50,000 contracts and the open interest achieves between 121,000 and 126,000. But, for right now a capitulation of speculator longs seems distant although we can be sure additional shorts were added as must be the case to be the party on the end of the speculators' long positions. ...more
http://silverstrategies.com/story.aspx?local=1&id=9194
Okay, that being so, how high can silver eventually go in this bull market?
A wise guy would tell you to go ask a Weimar survivor, but I won't. Instead, I'll say it'll go to somewhere around 1/20th of an ounce of gold.
IMO, der Silberpreis wird sich ungefaehr verdoppeln in Euro innerhalb drei Jahren und verdreifachen in 5 Jahren....mehr sehe ich nicht.
Gruss
XEX