Wednesday, March 05, 2008

Short Squeeze, Is the Silver story going to pass you by??

After yesterdays blood letting I was not sure what to expect today. It was quite possible that a major correction was in play and the bottom would continue to fall out but overnight things firmed up with Gold steady and Silver slipping just a few more cents. So today it was quite an eye opener when Silver made up yesterday’s loss to add .99 cents by noon and Gold was up a whopping $27 dollars. Yesterday’s profit taking, manipulation, correction or what ever else you want to call it was stalled in its tracks, and responded with new highs, now that is strength!

Two days ago there was an article calling a Short Squeeze in silver, now I was not convinced and by morning the prices had turned south so I discounted it and did not post or comment on the piece. While I’m still not sold that now is the big break, today’s numbers justify sharing this article with you by Jason Hommel

Now Jason Hommel has quite a following but I generally discount him due to his predilection to intermix faith, biblical history and silver investing. As I’ve stated before there are enough good reasons to own silver without relying on the “A burning bush told me” investment rational. That said, Jason believes strongly in his commodity of choice and does some good detailed research and writing which makes him worth a look now and again.

The clincher in my books was today’s post by Ted Butler, who explains the pressure the silver shorts and other commodity shorts are finding themselves in and the revelation that at today’s prices the 4 biggest silver shorts have lost $1 billion in the last 2 weeks and $2 billion in the last two months.

This kind of loss can put some powerful hurting on whoever holds these shorts, and if these shorts were held buy financial institutions already facing loses from other aspects of their business this could be the final nails in their coffins.

So is there a squeeze on? it’s possible. Is there a squeeze due? it’s probable

Is now the time to take profits and run? No bloody way!!

Be strong, be brave, so what if you lose a potential high for this quarter or half, it's certainly better than being empty handed when you realize it's going parabolic and you missed out on buying back in.

Monday, March 03, 2008

Silver prices are like the Borg, Resistance is Futile

You always know it's going to be one of those volatile days when Kitco continually fails to load for you, fortunately we are to the upside. and whats that? "Ding, Ding, Ding, Ding"

That's the bell telling you silver is up another 2.5%+ and sitting handily over $20 at $20.30 at noon. I wish my window at work faced the Scotia Bank tower, I really want a ring side seat the day mania sets in and the line forms around the building like it did in last precious metals boom

So what's going on to fan this sudden interest? Well Jeffrey Christian the CEO of CPM Group in New York says a new influx of investors buying physical silver is the root cause of the recent run up.

With the ETFs holding so much bullion the new physical investor is making a large impact and probably giving the silver shorts nightmares. This is the time to buy if you have not already, it could be your last chance.

At these levels of supply/demand coin shops, banks and private mints are having a hard time meeting their orders. From other articles, private correspondence and what's available on various web stores it looks like the amount of silver available for us peasants who can't afford to buy 1000oz bars is becoming limited. One site I made a few small purchase from has had nothing of note for months, gold or silver!

Another note of interest, someone brought to my attention that BNN has finlay returned silver quotes to their ticker and actually did a silver round table today

The silver story is real, it's finally being noticed and the sky is the limit for price!

Be one with the Borg before it's too late, the last one assimilated to the silver story gets to buy mine as I bail out.