Jason Moran
Monday, September 15, 2008
  Convincing You About Silver
It doesn't seem like you are all convinced that silver is a good thing yet. Think again.

I already presented my case by showing that industrial use is growing every year (after all, silver is the most reflective, conductive, (etc) of the pliable precious metals). The world's existing supply has nearly been depleted. One of the richest sultans or oil czars out there could actually buy all of the known silver in the world (if they wanted to). Very little silver exists, it's as simple as that.

However, that article I linked to has something even more interesting to say:
Let me state that clearly - one (maybe two) U.S. bank holds a net 36% share of the entire COMEX silver market. The same one or two U.S. banks hold 82% of the total commercial net short position. This is a concentration that is unprecedented; maybe double or triple or more what the Hunt Brothers held on the long side in 1980. Without these, one or two traders, there would hardly be any commercial silver short position at all. This makes the big concentrated short a danger to everyone, including the market itself. That’s why the regulators must act now.


This bank(s) will probably go out of business (is it JP Morgan/Chase?) because it will simply not be able to buy out all of the shorts it now owns. That may not make perfect sense to you, but this is a way to sort of think about it: One unlucky bank owes the world massive amounts of the not-readily-available silver, and when push comes to shove it will simply be unable to pay up. When it makes the attempt silver's value in dollars should sharply increase.

The gamble is worth it! Worst case it's an even trade, best case you make a pile of money.

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Comments:
See, you should have all listened to me. Silver is worth over 15% more than when I posted this 2 days ago.
 
Anybody reading your blog just doesn't get it, Jason. They fully think that things are out of their control, or that it's the government's job to regulate, rescue, regulate some more, and tell us what's best for us.

They also want the government to fully fund their retirement through Social Security, a ponzi scheme at best.

Nobody wants to take responsibility for their own actions and their own future. And we've all grown up in 'the greatest country on Earth', and fully expect... no demand, that things shall forever be as they have been for the majority of our short lives.
 
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