The biggest story in the silver market is not the price gains, but rather a condition of backwardation in the silver futures market. Ted Butler discusses the significance along with silver price manipulation.
JP Morgan’s short positions on silver may just blow up in their face. As the price of silver climbs, claimed to be manipulated downward by JP Morgan, the banking giant may lose a lot of money if reports f their short positions are correct. Many analysts see these factors as nothing but positive for the price silver as investors look to ‘poor mans gold’ as a play against current monetary policy.
Reuters reports that on Wednesday, Gold edged lower as the market looked set to consolidate ahead of the U.S. Federal Reserve's decision on further monetary easing next week while Silver initially rose strongly after the U.S. futures regulator raised an alarm about the silver market.
The dollar firmed up today on consumer confidence reports that show a modest improvement. However, jobs, housing and income expectations fall, painting an unflattering picture for the U.S. economy. Silver was more than likely helped by speculations that the Feds will try to create inflation with another round of large asset purchases.
By Melissa Pistilli-Exclusive to Silver Investing News Did you see silver drop as low as $9.35/oz today? And the Dow briefly fall below 8,000? Some of you may be wondering, “As the markets plunge at a devastating pace, why is the price of a safe haven commodity like silver not soaring through the roof?” I [...]
Monday, February 21, 2011