Embry also discusses silver's open interest, and rapidly rising premiums for bullion silver coins.
I have a number of thoughts on this situation. First, I think the CFTC has sort of pushed off the ruling on the position limits for a few weeks to give the large bullion bank with the enormous short position more time to deal with it. Part of dealing with it involves getting the price down as low as possible and getting all of the speculators out.
The open interest in silver is back to what it was when silver was $7 to $10, you haven’t seen it this low for a long time. So this has been effective, they have gotten the paper speculators out.
My coin guy came over to see me yesterday and I asked him, ‘How’s your silver market these days?‘ He said, ‘I just got three boxes of maple leafs in or about 1,000 coins.‘ I asked him how they were selling and he said, ‘They are going out the window, all but 50 coins are gone.‘ I asked him what price he was selling them and he said, ‘$38 an ounce.‘ That’s with the paper price $30 to $31. So the smart guys know this is a rig job and they are getting their hands on what silver is available as fast as they can.Read more from KWN:
