Paper silver v. Silver silverThecontact out of London has updated King World News on the Asian buyerswhich have been squeezing the shorts in the silver market. The Londonsource stated, “There is an insatiable appetite for physicalsilver here and the shorts know that, the shorts know they arecheckmated. The Asian buyers are layering in bids to take advantage ofbear raids in the paper market which have been used to shake out theweak hands.”
Asian buyers were able to pick up silver at adiscount at the lows of yesterday. They are continuing to buy today andtomorrow. People have to remember that spot trades 24 hours a day, soas the shorts raid the market, physical buyers already have orders in tobuy tonnage of silver at a time on that weakness.
AsI said to you the other day, the locals which were short with the bankswere overrun when the price of silver stabilized just above $25.50 for afew hours. The local traders were margined out and silver moved over$1 higher later that same day.
In other words,the only entities that are left short here are the Fed backed banks.Nobody in their right mind would be short here.
Spot has been trading in front of futures here in London all day. We have been in backwardation all day long on the LBMA.”
So the Asian buyers are enjoying this weakness in the silver market?
“Of course they are. $30 is just going to be a small pause along the way to much higher prices"