(naked) shorts are just pretend supply that does not exist. The entire market structure today, including price, assumes that much more Gold and Silver exist than is actually the case.
Thanks, Jim H. I was hoping you could enlighten me. My understanding of the futures markets is thin.I understand that naked shorts are not backed by actual gold/silver holdings but to enter a short futures position, naked or not, isn't necessary to sell the futures contracts to a counterparty? If so, who would the buyers be of the huge naked short positions? Could the bullion banks be the buyers and the sellers, willing to take a small loss on the long positions knowing they will recoup it on the short positions?
Martin Armstrong is very dismissive of the wailing about naked short positions on PMs so I am curious to know if he has a point or not.
Its only been one day, but today the gold silver ratio appears to be improving, from the point of view of the silver bugs anyway. Any time silver advances faster than gold at least in recent years, it is positive overall for PM, and this is the first day this has occurred since The Big Gold Crash.
You can watch this ratio on a daily basis in realtime at this link:
http://stockcharts.com/h-sc/ui?s=GLD:SLV&p=D&b=5&g=0&id=p51176326179
Its not 100% accurate since GLD and SLV both don't track gold & silver exactly (JPM has to make money somehow) but its pretty close and will give you a good idea.
One reason this could be happening is that the entire commodity complex is doing pretty well:
Platinum +2.07%
Palladium: +1.98%
Copper: +2.91%
Oil: +0.78% (oil had its big move yesterday)
Silver: 4.78%
If you watch these guys, they all tend to move together - not at the same rates, but generally in the same direction. If oil drops, likely - so will silver. That's why I say gold (and silver) both trade like commodities to some significant degree. Sometimes gold diverges, but mostly, it tracks.
Slightly off topic but interesting article on Bitcoin and Litecoin
Nothing like having physical…but I find the whole virtual currency idea and the appeal of bitcoin fascinating.
Can Bitcoin Alternatives Save The Virtual Currency?
http://inventorspot.com/articles/can_bitcoin_alternatives_save_virtual_currencySure something is burning. The banks and the government can’t see gold, or anything for that matter, get more attention than their dear dollar. They are using every possible trick in the book to smack down gold and have the spotlight back on dollar. However, this may Backfire….
The clichrrd name of this bay arises from the 1772 slaughter by regional Maori of Italy traveler Marc-Joseph Marion du Fresne and 26 of his affiliates.visit here campervan hire New Zealand