RE: OMG! Seinfeld has lost control in his Shorts rant cont'd.....
Gold and silver producer's short the metal in order to lock in current metal prices, if they believe prices are at the high end of their price range....or to satisfy some loan-clause set by a lending insitution or creditor. Jewelry and electronics manufacturer's will go long the metal today, via the futures market, if they believe prices are at the low end of their range....which can offset the risk of being forced to purchase these metals at higher prices in the future.....offsetting the risk, if they're correct. Small spec's like you and me are in it for profit, but we help grease the wheels of this market by adding liquidity. Nice and efficient market........it makes perfect sense!
Then there's these investment banks (The Commercials), the four largest of which are short 44% of the entire silver futures market on the Comex. These are INVESTMENT BANKS - they have little to do with Au / Ag production or jewelry/electronics manufacturing! They also claim to support and preserve 'orderly and well functioning markets'. Why are they here? Why the metals? What is their aim; and more importantly......what the F***!
Rant over. (lol)