Nearly a year ago, The Doc made a bold call that silver would hit $70 during 2011. Obviously that never happened, not even close. And frankly, it hasn't had a chance of happening since the first week of May.
In early 2011, The Doc foresaw a run-up in silver to $50, and a massive short squeeze among the commercials, taking silver past $50, and rocketing it to the $70 range before correcting back to ~ $45-$50. While the initial stages of that anticipated short squeeze actually took place in late April as silver shot from $40-$49.73, the CME rode to the rescue of the commercial shorts (i.e. JPM) beginning Sunday night May 2nd, hiking silver margins 5 times within a week and a half. This effectively prevented a massive short squeeze of the commercials, which would have shot silver at least to $70-$75 in my opinion. The rest is history as silver began a large correction, which has continued over the last 7 months of 2011.
Obviously, The Doc underestimated the lengths the cartel would go to in order to defend their bankster brethren.
While the timing of The Doc's $70 call is off thanks to collusive manipulation by the COMEX and the CME, these manipulative tactics do nothing other than strengthen silver's long term fundamentals.
Those who followed The Doc's advice and purchased physical silver have insulated themselves from the coming destruction in the purchasing power of the dollar, which will happen rapidly once the Euro situation is resolved.
For those worried about the timing of their physical purchases, the great thing about a secular bull market is that it erases mistakes of timing, provided you SIT TIGHT. In 2008, many silver investors purchased silver into the rally to $21, then watched silver plummet 60% to $8 in the wake of the Bear Stearns, then AIG & Lehman collapses. Those who bought at $19, $20, and $21 in early 2008 felt the same that October and November as those who bought at $45, $47, and $49 in April of 2011 do today.
The size of your stack has not shrunk as a result of the manipulative margin hikes and takedowns of silver this year, but JPM's naked short position has- by about 150 million ounces. This is extremely bullish for silver going forward, particularly if JPM does not initiate new shorts into the next silver rally.
While we didn't see $70 silver in 2011, we will soon, the fundamentals are better than ever.
Be right, and SIT TIGHT!