“When the music stops, nine tenths of the law is possession. Having physical metal under your control then becomes the ultimate wealth preserver.”
The Price of Silver in the Age of Broken Promises
By: Dr Jeff Lewis
Jan 25, 2013
The price of silver remains at the mercy of the big banks that make of the majority of the short side at COMEX — which is still the primary paper pricing mechanism for silver.
Could silver prices go above $50 and beyond this year — and then perhaps retest $50 as a floor?
Remember that it is the concentration that matters most for the price of silver. It does not matter if those large silver short positions are hedged or if a long exists for every short, since that is a fundamental aspect of market driven pricing.
All that matters is that one or two entities hold the majority of that short position and therefore they can and do influence prices. This is the same story that has been told over and over by Ted Butler and GATA for decades.
For comparison purposes, and even when the concentration is calculated without removing swaps, the current level of short market concentration eclipses the amount of silver which the Hunt brothers held long so many years ago and were subsequently persecuted for.
Silver Tests Major Moving Averages