I have previously posted that one of my New Years Resolutions is to spend less time on the computer and less time on message boards. But the New Year is not here yet so I thought I would attempt once again to post my views on supposed silver manipulation, gangsta bankers, JPM Morgue, the Comex going bust, and all of those theories which many people believe control the silver market.
I don't buy it. There are, of course, silver shorts. The paper price of silver has diverged from the physical price. No doubt about it. But is there a concerted and organized effort to keep the POS down. No.
I will try to keep this short but here are some of my reasons in no particular order:
1. Been there--done that. Back in the late 1970's and into the early 1980's, there was the same hue and cry about silver. The Comex (or the NYNEX then) was going to go bust--silver would skyrocket when the shorts were overcome. Bankers were holding down the gold and silver price. Gold would soon be $10000 and silver would be in the hundreds. We had any number of silver "experts" who were telling us that and only to willing to send us newsletters (pre internet) at $50 or a $100 a pop to tell us the TRUE story.
We have the same situation now--we have any number of gurus who are only too willing to sell us the same story. When they happen to be right--they take the credit. When they are wrong, they can blame "manipulation", the shorts, the Comex, etc. And many of us are willing to believe that.
2. All of us (me included) are waiting for silver and gold to rise parabolically (another over used word). When it doesn't happen, we are only to willing to believe in conspiracy theories like the ones listed above and many more. We just CANNOT be wrong so it must be the fault of gangsta bankers, etc, etc.
3. The silver market, compared to most any other commodity market, is tiny, miniscule. So miniscule, in fact, that if the "shorts" werecompressing the price, it would be pitifully easy to break them. Sprott himself could do it with half of his assets tied behind his back. It isn't happening because the market price of silver is, indeed, the market price. If people are willing to pay huge premiums for physical--that is their mistake--don't blame the market for their errors.
4. There is no shortage of silver. Every so often, the rumor goes around that some seller is "out" of silver. But it is only rumor or, if true, it is shortlived. You ever hear of any maker of cell phones or computers or other items that use small bits of silver complaining that they cannot get it?
I have been interested in silver since 1965 when my dad gave to me, as a junior high student, a cookie can filled with pre-1965 silver coins and told me to keep them and add to them. Which I have from that day to this. I have been invested in silver and gold mining stocks since the early 1970's.
The price of precious metals will rise as paper money cotinues to fail. Our "problem" here in the United States is that our dollar, weak as it is, is stronger than most other currencies.
There is no conspiracy of shorts, the Comex will not fail, the silver market is so tiny that JPM doesn't even notice it and Sprott (any many others as well) could break the supposed hold on silver than shorts have on the price of silver at any time. The fact that they don't tells me that there isn't such a hold.
Have at it.
AI
Market Data 
Markets 
