Saturday, August 6, 2016

What about dem silver shorts?

There is a cautionary note on KWN because the record high amount of shorting of silver by commercial interest.

http://kingworldnews.com/silver-shorts-hit-all-time-record-now-breaking-off-the-needle-to-the-downside-see-stunning-chart/

According to the KWN article referenced, a record short interest in 2004 was followed by a 10% pullback then a doubling of silver price.

I am going to add my own caveats to all this. NOTE that the commercials are always short (well, almost always) so they can slip down that curve easily. Silver had a good run this year, so it is natural that the commercial perma bears would increase their shorts. NOTE also that during the last week and this, silver hit 21.5 intra day then pulled back to 19.92 yesterday. That is an 8% difference. Will silver go lower next week? Possibly.

It looks like that the correction is near its end. As the Media gives Trump the full Palin treatment, the disaster looming ahead will add to the disaster created by the Obama regime. Owning precious metals is a hedge against the developing disaster. To be sure it is not all Hillary's fault, nor is the coming disasters (should she get elected - God forbid) will be due to her possible election. After all, the Banksters have hazarded our currency on Keynesian economics. And Socialism always fails. It just takes time.

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