Highfive--as you know, every short contract (seller) must have a long out there who wants to buy it. As far as I know they don't pass on the short contracts--they simply create new ones. The trouble is the shorts (Goldman Sachs is a notorious silver shorter for example) can essentially naked short all they want because they know physical delivery rarely takes place. Can you imagine some short coming along and shorting 20x the amount of TNRI stock available? There'd be outrage! But the COMEX makes delivery difficult and the shorts know it. It's easy to force margin calls on the paper longs who must sell to cover. It's an uneven playing field designed to give the advantage to big money shorts/bankster/hedge funds. What's going on in my opinion is a crime just as bad as anything that happened with Enron and the Fed is complicit because they don't like silver or gold--real money--competing with their debt instrument (the dollar). A handful of shorts are basically controlling the silver market because they are allowed to short ridiculous amounts of it even though they couldn't possibly cover because that amount of silver does not even exist! The silver that does exist is mostly leased. Shorters are getting something for nothing. You can check out the COT report to see the imbalance.
Again, shorts know that actual physical delivery has been made difficult for the longs. It's all done by leveraging paper and no silver is expected to actually change hands. The CFTC can and has changed the rules to help out their big bankster buddies. Remember in the Hunt Bros. days how they outlawed buying of silver--they only allowed sells in order to stop the panic by the shorts. If some buyers come in now and insist on delivery, that will again put a lot of pressure on the shorts. Who knows if they'd temporarily outlaw long contracts again. Maybe, because it's that crooked. (That's why I laugh when folks want the SEC to protect us--they're there to protect the big money powers, not the people!)
We need the longs to take physical delivery to force the shorts to cover. Period. It would help if Joe Sixpack started buying silver coins too, but he's too mesmerized by myriad distractions and besides, he's broke and inflation is eating away his purchasing power. Buying silver is the last thing on his list of priorities.
And so the game continues...
AI
