Monday, November 1, 2010

Silver Squeeze Coming?

Take this intel any way you want to take it, I'm just passing on the information.  This is from the highly recommended daily reading of the King World News blog: 
A King World News contact out of London has confirmed that, “Massive Asian buying is going to squeeze the shorts in the silver market. Any reactions in the price of silver will be heavily purchased, and these buyers will take delivery of physical silver.” The source who wishes to remain anonymous agreed with Eric Sprott that this squeeze could take the price of silver to $50 in a matter of months.
Here is the link - I recommend bookmarking this site:  LINK

My take:  I have been wondering for the better part of 9 years when a big fund/funds/foreign central bank might take a shot at squeezing the living hell out of JP Morgan's absurd paper silver short and the U.S. Governement's absurd short position in gold (via leasing and its "fractional" bullion system - see Rome for verification that the "fractional" method of bulliion ownership/lending has been in place for thousands of years).

Is the Big Squeeze finally coming.  All I can say is that we'll know when when we know and that I would not want to be short any part of the precious metals market when the Big Squeeze arrives.


  1. Here's to JPM being reduced to dog squeeze.

  2. I have not yet found a link to a site showing the NAV and accumulation of bullion, but the introduction of the Sprott Physical Silver Trust is going to introduce about a half billion dollars of demand for silver bullion into the market. I can't believe he has not already secured sources, but probably has not yet taken delivery. When he brought out the Gold trust I was able to track the actual accumulation of bullion over a period of about two weeks.

  3. I guess you found it. I just got your "tweet" LOL.

  4. If this news is out there today, then why are silver and my silver stocks down today?

  5. Obviously the "market" isn't buying into it. On the face of it, it is an extreme piece of news. I'm sure it's being met with a high degree of skepticism/disbelief.

    I'm not rushing out and going on margin based on this news. E tu?

    But then again I have 90% of my money in this sector already.

  6. Reports of the demise of (insert entity here) are greatly exaggerated at this point....until they are not.

    Downfalls of any large entity take time and those who make predictions often look like fools...until they are right. Usually much later than anticipated.

    I remember Michael Metz from Oppenheimer on PBS Nightly Business Report in late 90's early 2000's. He was the guy they trotted out to identify the bubble in Tech. On the other side, Joseph Battaglia (?) was always taliking of a new paradigm. Metz looked like he was an old-timer who didn't get it. Joe was a hot shot with an orange tan who went on about a new era.

    Who was right and who was wrong? Depends on your time frame I guess.

    Haven't watched hardly any CNBS and PBS Business in years, but when the meltdown was on I noticed JOseph make some appearances again. This time he was bearish and said essentially get out. I thought maybe he got religion.

    Then I thought he may be clueless, as the market gained so much of the losses back.

    Then I thought maybe he was a useful idiot to get the public to go the wrong way at pivot points.

    Or he just isn't a good market timer.

    Who knows, but it stuck with me.....

  7. Physical gold and silver are cool. But shares? Don't you think that after price of both metals rise significantly mines will get nationalized?

  8. I think that risk is greater in the U.S. than in eastern hemisphere countries. We are seeing the east shift toward more freedom and the west, especially the U.S. shift toward totalitarianism.

    I haven't watched that latest NIA video yet but I'm sure that's what it's about w/respect to the U.S.

    What you point out is always a risk. I think I can ride the shares far enough and time my exit ahead of that possibility.

    Of course, if that happens in the U.S., you have to ask yourself if you want to continue living here. Jim Rogers already made his decision about that...

  9. They'll be nationalized alright. By the Chinese! LOL!

  10. Hi

    I am from Mumbai, India. I am following your blog for quite some time. In Mumbai there is a huge demand for Gold and Silver in physical form at present. The prediction was this Diwali (a major festival in India which is starting this week and a big event for all Indian household when we buy Gold and Silver every year) Gold and Silver demand will fall because of high price. But I just saw a news artcile today in one leading Indian daily that this time Gold and Silver demand is at record high level defying the earlier logic of high price dampening demand. I used to purchase Silver Bars from TBZ Thane, Mumbai who are one the oldest & biggest dealer for Gold & Silver in India. Surprisingly last weekend when I visited them for buying Silver I was told that they have stopped selling Silver and Silver ornaments for the time being as there is shortage in the market and TBZ wants to hold their physical position.

    Definite the demand from India is huge and specifically silver is getting hoarded in physical form.


  11. Hi Rana. Thanks for you comment. That's great color!

  12. Dave, Rana,
    If you want you can try at NIBR at Zaveri bazar/Paydhoni area. They would have 800-900 gm raw silver bricks/bars. They would be cheaper by almost 7-10% from TBZ, Thane, Mumbai. Here is the address and link
    Contact Mr Ajay Arora, if you want to buy more than 3-4 Kg or more. I don't think there is any shortage. When I was there last time and seen people have asked 10 Kg Gold and no eyebrows were raised.

    Dave: Some GK about this area, this area called in Hindi "Paydhoni", when I visited this area last time, the taxi driver was joking, "Sir, here Money is washed like no tomorrow". English translation of "Paydhoni" means "KICKWASH".

    Rana: let me know if you have any problems.

    From India.