EE

Gold, Stocks and Stagflation

Don't forget about how the big boys have rigged gold and especially silver to current low levels which will explode up in the near future.READ butlerresearch.com june 16th of which follows a portion......But what happens when someone buys shares in these ETFs and the seller is selling those shares short? Does the short seller deposit metal to back up the buyer’s purchase? No. The short seller just sells the shares short without depositing metal, perhaps borrowing other shares first, perhaps not. The buyer doesn’t know who he is buying from, he gets a confirmation of his purchase from his broker, pays for it and assumes, according the representations in the prospectus, that he is buying new shares issued by the sponsor who has deposited metal, or from an existing shareholder who has decided to liquidate his shares. It never occurs to the buyer that he is buying from a short seller who is not depositing metal. In essence, the short seller is circumventing what is promised in the prospectus. That party is short-circuiting and destroying the promise clearly laid out in the prospectus that real metal backs every share sold.

Here’s the disturbing question - which buyers’ shares are left without silver backing when short sellers are involved in the transaction? Just the hapless and unsuspecting buyer who was unlucky enough to happen to have his purchase short sold, or do all SLV shareholders get shaved proportionately, like a silver coin clipped in olden times? Don’t look to the prospectus for answers, because you won’t find any.

For those who were unaware of this and don’t understand how shares can be sold with no metal backing (or doubt my contention), there is hard proof. There is a short position list reported that proves short selling exists. Currently, the SLV shows a small published short position on the American Stock Exchange of around 250,000 shares, or the equivalent of 2.5 million ounces. On March 11, this reported short position hit almost 1 million shares, or nearly 10 million ounces. So, there can be no doubt that some short selling exists, which raises all sorts of disturbing questions. In my opinion, this aspect of the metal-only ETFs wasn‘t fully thought through before their introduction. Unfortunately, the problem may be worse than just this SLV short selling; maybe much worse.

WHAT’S GOING ON?

Around this past April 15 I began to notice a more pronounced delay of silver deliveries into the SLV. This was for much larger amounts of silver than I previously observed. In fact, the amount of short selling in SLV shares began to look extreme.

Just a short word on short-selling. Please don’t confuse this discussion on the short selling of shares of the SLV (and GLD and IAU) with the short selling I continually discuss in COMEX silver futures. I know this can be a complicated topic, but it is important for you to understand it. In futures, there must be a short for every long. Therefore, the problem in silver futures is not the presence of shorts, but the documented concentrated nature of this short position, namely, an extremely large short position held by just a few traders. Less extreme concentrations in other commodities have always been considered manipulative by the CFTC in the past; just not now in silver (and gold), for some reason.

The 'Death of Gold' Revisited

And one more thing ...Butler says he hears that the far east auto makers are looking at replacing platinum with silver in catalitic converters to reduce costs.

The 'Death of Gold' Revisited

Well, it is possibile for gold to break under 800 as the summer doldrums approach, but reading Ted Butler (found at ) investmentrarities.com , both gold & silver are in manipulated markets to an extreme degree with concentrated shorts trying to activate sellers and begin to cover at least some of their huge,huge, huge, back against the wall position. Since gold has limited industrial use, it operates on percieved values and habits. Silver is industrially important and in very short supply and in a much smaller market. When less than 1% of the gold investors see silver out perform gold, understand the small market shortage, the ungodly short position, and switch gold for physical in fist silver, the climb past $100/oz silver will begin and gold could stagnate. You want to be early in the play this year, probably this month! Junior silver miners planning to dig before 2011 are under valued now along with silver maple leafs, eagles, rounds, and bars. Just read Butler and Jason Hommels silverstockreport.com A lifetime opportunity is on a silver plate. The illegal short position waiting to be destroyed will be a history lesson in the near future. Live it profitably. One last item.. the manipulators can take down gold easily as no real industrial demand is present and thus hope silver will follow as usual. The silver shortage will soon break that strategy. The sooner more take delivery on silver and reduce paper plays the sooner the explosion. Just need one multi-millionaire or large fund to do it and COMEX will be scared stiff unable to get the bars. Its the concentrated shorts using fear that have always started the steep corrections, it will work in gold for a long time, not so with silver.

Gold: An Interesting Dynamic at Play

Well, it is possibile for gold to break under 800 as the summer doldrums approach, but reading Ted Butler (found at )investmentrarities.com , both gold & silver are in manipulated markets to an extreme degree with concentrated shorts trying to activate sellers and begin to cover at least some of their huge,huge, huge, back against the wall position. Since gold has limited industrial use, it operates on percieved values and habits. Silver is industrially important and in very short supply and in a much smaller market. When less than 1% of the gold investors see silver out perform gold, understand the small market shortage, the ungodly short position, and switch gold for physical in fist silver, the climb past $100/oz silver will begin and gold could stagnate. You want to be early in the play this year, probably this month! Junior silver miners planning to dig before 2011 are under valued now along with silver maple leafs, eagles, rounds, and bars. Just read Butler and Jason Hommels silverstockreport.com A lifetime opportunity is on a silver plate. The illegal short position waiting to be destroyed will be a history lesson in the near future. Live it profitably.

How High Can Gold Go?

The same is true for silver, but it will out perfom gold. In 2001 the gold silver ratio was 70/1, last year 56/1, now 47/1, the historic is 15/1. To learn why go to investmentrarities.com and read Butlers comments. The last for issues should do, but go back further for fun. Plus, so many still think like the 1st two there's a long way to go!

Gold and the Dollar: Value is in the Eye of the Beholder

So, as good as gold looks,and you must take physical delivery to avoid a scam, wait til you see what silver does an is doing. In 2001 the gold/silver ratio was more than 70/1...last year 56/1.... now 49/1. Silver, much rarer than gold,has many more industrial uses, same monetary strengths, more affordable and in a much smaller market. Hold in your fist all the silver bullion bars, Eagles,& Maple leafs you possibly can. The historical 15/1 ratio is marching on and maybe lower as companies bid it up to stay in business and gold investors see the better deal. It is very under priced don't wait til it goes past $200/ounce to get interested. TAKE DELIVERY ONLY!

Silver Now Outperforming Gold

I repeat the suggestion to read,,,, Theodore Butler, Jason Hommel and his listed sites. This time fundamentals will mean more than chart techs and you better read words more than lines. And to Silver Analyst, your study and chart of the commercial shorts was mis-leading as Butlers work is on the concentrated 8 & 4 huge shorts that have manipulated gold & silver for years to unreal low prices. Thanks to them my cost in hand is $14/oz silver bars , maples, & eagles. Start reading Butler from May '07.

Silver Now Outperforming Gold

Are you in for a shock! Read Jason Hommel's silverstockreport.com and the sites listed.

Ouch! This Gold Trend is Relentless

Also read the Alpha below you McLarty

Ouch! This Gold Trend is Relentless

It is time you read Ted Butler on silver and then the folks trashing paper assets and especially currencies. Also try Jason Hommel

Can Gold Continue to Rally?

Agree with the above plus I think silver will perform better than gold when folks learn that silver is rare,needed in industry which has used up almost all inventory with little to be recovered,while gold is used mainly in teeth and jewelry, and all mined gold mostly still exists. If just a few gold bugs switch from the trillions invested in gold to the billion silver market.....well... the gold/silver ratio is set for currently unthinkable change.

Value of Gold Over the Ages

Why is everyone fixed on gold when all the gold ever mined still exists ? Silver is the poor mans gold but since it is used up in many industrial processes and governments have long since sold away their stockpiles it is just a matter of time before Silver is recognized as much rarer than gold, is short in supply, industry must have it, and the manipulative shorts have to cover. The silver gold ratio could be drastically reduced in a few years or less. maybe 10/1 or even if gold drops to 400 as Silver out performs.

Bull Market for Silver and Gold Now in Full Resumption

You are the third Alpha contributor I'm bringing Theodore Butler reports to that should also explain why silver has seen the lows. Go to his archives and read the last 4 reports. Aside from Butler,are you hearing from other contacts that validate the silver manipulation and building short squeese explosion the charts seem to show? Will anyone provide an opinion on Butlers work or help expose the story? Why aren't resource investor proponents all over the exchanges,regulators,&... dealers trying for crimminal charges?