STRIEBRO - manipulátori sú v úzkych

The shorts have gotten absolutely hammered.

While I don’t feel sorry for them, decades of watching them pull dirty tricks at the last moment (with the help of the regulators) and triggering sharp sell-offs, makes me uneasy to declare them finally defeated. Until, at least, I read their actual financial obituaries or bankruptcy notices. So, for the time being, let me declare them seriously wounded. Like all wounded animals, however, they still may be dangerous.

How wounded are they? In silver, the big four shorts are out more than $1 billion in the past two weeks, and around $2 billion in the past two months. The big four gold shorts are out close to $3 billion in the past two months. Similar losses can be found in oil, natural gas, base metals, the grains, cotton and some other markets.

What has caused this sudden and profound change of fortune for the shorts? Two things. One, the relentless demand for raw materials caused by world economic growth, primarily in the BRIC nations (Brazil, Russia, India and China). Two, the influx of heavy commodity investment demand by institutions, primarily the index funds for now, but with the sovereign funds waiting in the wings.

Zdroj: Silverseek.com

06.03.2008

"In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value."   Alan Greenspan