Merrill Lynch consultant David Bowers explains, "the decision by U.S. authorities to enforce a ban on short-selling on 17 banks and financial institutions has set in motion a massive short-squeeze forcing hedge funds to unwind their short positions in these stocks. And since these short positions were used as funding for long positions in oil and other commodities, the unwinding of these short positions in banks also meant unwinding the long positions in oil. The unwinding of these short positions in financial stocks also at the same time forced these hedge funds to buy dollars (as financial stocks are bought back with dollars), which contributed to the dollar rally, a rally which further depressed the oil price."
I believe this is the cause of the dollar rally. Hedge funds being forced to liquidate their speculative long positions in commodities, and forced to buy dollars. It's only temporary, and creating one hell of a buying opportunity. As I write this Silver is getting killed in the overseas markets. It's down to $12.65. It could go much lower, because this has very little to do with the supply and demand of real physical silver. Gold 793.10
that could be the reason...makes logical sense.... the silver market isn't very big.
-SWUSC
`Everybody is ignorant. Only on different subjects.' Will Rogers
"This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the "hidden" confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard." Alan Greenspan, 1966.
What's Happening With The Price Of Silver
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Posted - 08/15/2008 : 00:51:57
