Silver's Volatility Is Set to Increase

goingbroke

Gold and silver have surged to new record nominal highs in dollar terms (all time and 31-year) with the dollar falling sharply on international markets. Silver has continued to surge in all currencies and has surged to a new record nominal high of $46.25/oz (£27.85/oz and €31.54/oz) on growing rumors of a short squeeze involving a billionaire or state interest attempting to corner the silver market. Traders and technically minded investors are firmly focused on silver’s record nominal high of $50.35/oz. Some with a longer term fundamental focus continue to see silver in triple digits if it is to match the real record highs of $130/oz seen in 1980. The inflation adjusted silver chart puts the present sharp rise in the all important historical context.

The massive concentrated short positions of some Wall Street banks have incurred serious losses and a desperate attempt to close their futures positions due to the tight physical marketplace may be leading to a short squeeze. This is something that GoldCore and a few other analysts have warned for some time. We have long said that the very small silver market was ripe for cornering by private or state interests and that appears to be happening on some level. However, there is an increasingly large number of silver buyers who realize the market can be cornered and they are buying in anticipation of this event.




very strong supply and demand fundamentals