ProShares Ultra Short Silver (ZSL)

[AlwaysRed]

A few things here.

1) They have the entire month of May to fill the May contracts. I believe they are due when the contract was created in May of last year.
2) I believe that a lot of the contracts you see moving forward are fictitious. I don't think that they were ever created to really be delivered. I think it is simply a paper/digit game they play. Kicking the can down the road.
3) I believe that a lot of the contracts moving forward are contracts that were created, but the companies do not need delivery because the economy sucks. The demand for silver is low.

So I think the remaining contracts after all the moving, are actual PHYSICAL contracts. They leave those for LAST!

So let's look at the numbers where we stand now.

19,976 contracts left for May as of now. 124,766 moved to July now.

So 19,976 contracts x 5000 ounces per contract = 99,880,000 ounces of physical silver.

99,880,000 ounces X 27 dollars = 2,696,760,000. So 2.5 BILLION dollars worth of silver at 27 bucks.

Again if the contract was created at 23 1 year ago (And I'm not sure what the settle prices were from 1 year ago) that is a 4 dollar difference.

99,880,000 ounces x 4 dollar difference = $399,520,000

So if the contracts were settled at 23 and they have to buy at 27 to fill physical contracts they have a 400 million dollar loss.

So I believe that throughout the month of May the price of silver will go down until all those contracts clear out.

The actual physical contracts that need to be delivered are left for last.