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The world
is waking up to the silver manipulation story...FINALLY!
The
mechanisms of manipulation are being exposed. Those silver short
"hedges" held by JP Morgan, Citibank and HSBC are a ridiculous
house of cards supposedly justified by the following physical silver:
1) Hedged
LBMA Warehouse silver
2) Hedged
COMEX Warehouse silver
3) Hedged
SLV Inventories
4) Hedged Pasqua-Lama & San Cristobal future production
5) Hedged
Silver Wheaton royalty streams
6) Hedged
silver producers
7) Hedged
refiner and smelter silver inventories
8) Hedged jewelery manufacturers
9) Hedged
retail bullion dealers
10) Other
mystery hedges on mystery silver bullion
According
to our good friend (ha!) Jeffrey Christian there's about 3.3B ounces of
physical silver that are hedged...at least that's what he said at the 2012
Silver Summit.
http://www.cpmgroup.com/our-market-views/presentation/all/cognitive-dissonance-silver-and-politics-silver-summit-october-25-2012
But what
does this really mean? Most legitimate hedges are closed out at the end of
their term as they are set up to hedge against price fluctuation risk over a
specific period of time. Clearly, there is little reason to go in and out of
legitimate hedges that are mitigating price risk on owned metal unless
physical metal is added or subtracted from inventory. So not all of the 3.3B oz need be hedged multiple times during the year. Sure,
there are legit "traders" out there but they gain legitimacy ONLY
due to the real market participants who are hedging the price of their owned
metal.
So here's
my question: If only 3.3B oz of physical silver are
available for legitimate hedging why is the COMEX trading at volumes of 100B oz per year? And how in the WORLD does the LBMA
"transfer" over 130B ounces of PHYSICAL silver every year?
Clearly
something is very wrong when people like Jeffrey Christian claim that
"hedging" at these volumes EVERY YEAR is legitimate.
***Keep an
eye on Pasqua-Lama, San Cristobal and other silver
mines that are being relied upon to deliver physical silver into forward
silver sales contracts...Governments have a funny way of hanging onto their
TRUE wealth when economic troubles start.
Mark my
words...
"The
wealth of every nation lies in their soil, not in their bank vaults."
May the
Road you choose be the Right Road.
Bix Weir
www.RoadtoRoota.com
PS - I
have posted this article with a very appropriate graphic on the website :-)
Naked
Silver Shorts
http://www.roadtoroota.com/public/1103.cfm
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