Replies to post #22301 on iShares Silver Trust (SLV)

[the long haul]

J.P. MORGAN & GOLDMAN AREN'T PUMPERS . But like in 2009 & again in 2011 , lots of money was made by these two institutions on these $10 - $20 paper slides . But no money is lost until you sell your physical. One can either revel in this manipulation (imo) and prosper , or call a spade a spade and stick to your convictions. Silver & Gold will never be used for toilet paper , but many fiat currencies have. And you gotta be naked to make use of the balance of this expired asset. Yur right , however , you don't have to be short ( as in Paul Williams , pardon the pun ) to get some satisfaction from a fiat currency gone bad !!! Heavens, the Dutch in 2002 made stationery out of their expired paper guilders. You could be writing a letter to someone on $1,000,000 of fiat currency spread out over 10 sheets of colorful paper. GLTA in silver & gold for 'the long haul'
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[Bertsllc]

The primary factors mandating a silver accident are excessive naked short selling and leasing. Silver has the largest short position that’s ever existed in anything. This is the key component to the coming silver accident. The total naked short position in silver measures into the billions of ounces and towers over real world supplies. This combined short position includes the COMEX, all other exchanges, forward selling and leasing, the cumulative issuance of unbacked silver bank certificates, unallocated storage programs and pool accounts. No other commodity has such a huge naked short position.

It is, basically, this bloated short position that’s at the heart of the coming silver accident. It is this same excessive short position that guarantees a financial windfall for your family. A naked short sale is the sale of something you don’t own. While common in financial markets, more than 99% of the world’s population will never sell short anything in their lifetimes. That’s because it’s an unusual and unnatural financial transaction.

Unbridled short selling can artificially depress the price. That is why we have restrictions on short selling that date back to the great stock market crash of 1929. In commodities, there must be a short for every long on every futures contract. Regulations are supposed to preclude excessive long and short speculation via speculative position limits, but these regulations have been abandoned in COMEX silver, despite the efforts of many of us to correct that.

There is one other aspect about short selling that is important to grasp. Whereas the word “sale”means closure or finality in all the billions of daily world business and financial transactions, a short sale is always an open or incomplete transaction. A normal sale marks the end of a transaction. A short sale makes the beginning of a transaction. A short sale must be completed at some point, in some way. There is no exception to this rule. Either the short sale is repurchased and closed out, or that which has been sold short is actually delivered and the open short sale is closed.

Precisely because all short sales must be closed out guarantees a silver accident. When I say that silver has the largest short position in history, I am also saying that silver has the largest number of incomplete transactions in history. Forget, for the moment, the manipulative and depressing effect this monumental short position has had on the price.

All short sales must be closed out in someway. With silver, could it be by delivering silver? Against the billions of ounces of silver sold short, how much do we have to deliver to close out these incomplete transactions? In the COMEX warehouses there’s 100 million ounces. That represents most of the known silver bullion in the world, but it’s mostly owned by investors other than the short sellers. Maybe there are a billion ounces of silver in the world, in coins, small bars and silverware, but that’s not eligible for delivery against the silver short position of billions of ounces. Not only is all the world silver in existence woefully insufficient to cover the monstrous short position, but most of this insufficient quantity isn’t even owned by the short sellers.