Stukje uit artikel van Richard Daughty (The Mogambo Guru).
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The continuing surge in silver is no surprise to either Ted Butler or me, although, of the two of us, only I am leaning out the window screaming "Buy silver now, or be left in the financial dust to die, you stupid morons!" which I think is a really nice shorthand way of getting the message across. Mr. Butler, ever the calm and deliberate one, builds his case from the facts. "The COMEX silver short position," he says, "stands out from any other commodity. The gross COMEX short position (open interest), for futures alone, is now over 700 million ounces. This is greater than total world annual mine production and greater than any world inventory amount than I have seen published. In no other commodity can this statement be made."
I interpret this to mean that if you have ever heard of the meteoric rises in prices when there is a "short squeeze" but have never really seen one, then you are in for a real treat.
If he stopped right there he would have a compelling message. I mean, the existing short position of COMEX traders is larger than the annual global output of silver! And being short, they have to one day buy silver to cover their shorts! But he probably figures that everyone is as dull as I am, and continues, making sure that we get the point. "The net commercial COMEX silver short position is also larger, by a disproportionate amount, than any other commodity when compared to real world production and inventories. Along with the 60-year continuous structural deficit, the depleted inventories, the paucity of below-ground remaining resources, and the stunning rarity of silver compared to gold, the uneconomic short position in COMEX silver is key to the real silver story. It is the resolution of this outrageous short position that will dictate the major moves in the price of silver." And that major move is, as if you have to be told, up and up and up.
Then he touches on the topic that is Number One With A Bullet: "Currently, there is a vocal debate about the prospective Barclays silver ETF and what effect the proposed maximum filing of 130 million ounces could have on the market. But why is there no debate about the 4 largest traders on the COMEX who are already net short more than 200 million ounces and what effect that has had on prices? Or about the 8 largest traders who are already short almost 300 million ounces?" I stand up in the back of the room and shout "Yeah! How come nobody wants to talk about THAT market-rigging scam?"
Amid rude calls of "Shut the hell up, Mogambo, you stinking idiot", Mr. Butler graciously defuses the situation by immediately going on to say "Make no mistake; this short position must be resolved. It is not possible for a short position that is larger than all the silver in the world, or could be produced, to last indefinitely. The only question is how quickly investors of the world learn the real silver story and rush to take advantage of it." And if you want some Real Good Mogambo Advice (RGMA), then jump in the car, drive like a bat out of hell, running red lights if you have to, and "rush to take advantage of it" by buying silver. And lots of it! Then sit back and relax, as your fortune is as good as made.