silver etfSome silver excerpts from last nights GATA report:
1/While the Comex clubbies might not be jumping up and down about silver (it has rallied 50 cents per ounce since their card game), the London traders are.
All the hoopla over silver this week has been over the proposed Barclays ETF. I have not seen one other reason given for the sharp rise in the silver price. Course, what else is new from the mainstream gold/silver world and Planet Wall Street. The information they have disseminated on gold over the past 5 to 10 years has been disingenuous, fraudulent and an outright pack of lies. Why should silver be any different?
The excitement over the silver ETF may be a reason silver is on the fly. Hard to say. Here is another behind the scenes reason:
You will recall our STALKER London silver source feeding us information about Saudi buying and recently (two and three weeks ago) about small supplies of silver constantly showing up. Here’s the story on this as this same veteran dealer knows it …
Twelve to 18 months ago the Saudis acquired sizeable amounts of silver and stored it England. However, when they asked for delivery the Bank of England balked because they didn’t have it to ship, or would not ship it out of the country because it may have been used for other (dual) purposes.
The angry Saudis dumped this stash in England and began buying elsewhere … probably Dubai, Turkey, etc., and have been accumulating silver in areas where they have been assured of delivery.
The London silver shorts have been dribbling this Saudi silver into the market whenever silver rallied, which is probably why silver has not been able to gain traction until the past few days. Word is this supply has run out. This might account for why the price of silver has finally done what many of us thought it would do earlier.
We know the gold shorts are experiencing their own Commercial Signal Failure and a number of them have begun to become panic buyers. It is very likely we are now seeing the same drill in silver. The silver shorts are going to get their lunch handed to them. Makes my day!
Today was Comex option expiry. What a surprise; an attack was launched on gold! The AM Fix was $562.25, only slightly less than the prior Comex close. However, the options are Comex related, so The Gold Cartel and other bullion dealer shorts went into action to cut their losses. Don’t you just love how our free market system works in the US?
The Gold Cartel huffed and puffed, yet by the close all they did was delay the coming gold price explosion. Early on the cabal and other shorts gave it all they had to reduce their losses on the 550 calls, which was reported to be a sizeable position in the Over The Counter market.
A $3 down day is not much considering the move we have had. The Gold Cartel is in the deepest of trouble. I expect to see a Gold Cartel panic to hit the gold market in the days and weeks ahead. The result of which will be some VIOLENT upside bullion price action.
Silver dropped 7 cents early, then took off, rising 20 cents at one point. The silver shorts are also in deep doo doo. I wonder how far off the day is when silver rockets $1 in a single Comex trading session?
Once again we see how Silver The Mule does its own thing. Gold was down, the dollar rose .30 to 88.46 and the euro fell. 47 to 122.44.
The gold open interest rose a healthy 5,276 contracts to 361,359. The silver open interest is becoming as striking as that of gold. It only rose 945 contracts on Tuesday and 921 yesterday. That is a pittance considering the move silver has made. The silver OI is 132,103 and 10,000 less than it was at its highs. This is clear evidence, as it was in gold the past months, that the silver shorts now want out ASAP.
2/With silver finding more and more industrial uses as a biocide and other nano technology developments, silver demand will rise. Without a corresponding increase in supply, prices will then rise anyway with or without a silver ETF. If the mining industry has an incentive to dig more silver as a result of higher prices, that will only serve everyone’s long term interests as it will help to add extra supply as demand for silver ramps up from both the industrial side as well as the investment demand side.