Not a Good Time to be Short on Silver

Source: SilverSeek, Chris Mack (11/1/10)

"JPM lawsuits have a larger chance of success than they did a year ago."

The pressure on silver shorts has been relentlessly increasing. On the heels of CFTC's statement of intention to enforce antitrust regulations in the silver market, two lawsuits were filed against JPM and HSBC for manipulating the silver price. With the testimony of whistleblower Andrew Macguire and the admission of fraudulent activity in the silver market by CFTC Commissioner Bart Chilton, these lawsuits have a much larger chance of success than just a year ago.

One of those lawsuits is seeking group or class action status if enough investors sign up.

While lawyers and regulators are pressuring the banks by taking legal action, suffering for the silver shorts is just beginning. Whether or not the plaintiff's prevail in their legal actions, evidence that JPM and other banks have cornered themselves into enormous naked short positions on physical silver is coming to surface.

Sprott Asset Management has announced that it is planning to raise $500 million for a publicly traded silver ETF that will only invest in physical bullion trading under the symbol PSLV. Sprott already has a similar gold ETF that trades at a large premium to the price of gold—given Sprott's solid record, there is a possibility of mass redemption from the questionable SLV ETF by investors who reallocate into PSLV.

Demand for physical silver has increased such that the U.S. Mint announced on September 30th that it will increase its premium for silver eagles by a third.

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Over the last few weeks, silver has oscillated between $23 and $25 as the commercial shorts have been thrashing in an attempt to find a weakness in bids. The $2 correction may already be over.

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

"China's export quota could be opportunity for Canadian miners"

Latin America: Six Gold Juniors Amass 100M+ Ounces
Source: Marc Davis, BNW News (05/25/2010)

Latin America, the world's last great mineral frontier for prolific gold discoveries, is proving a godsend for some lucky investors.

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."

I haven’t spoken to my old mining stock friend, noted and universally respected gold stock guru, Bob Bishop, about Rare Element in a year, but I hear he is still a supporter and very large shareholder. I don’t believe he will hold it against me to remind you that this was one of his favorite holdings when he left the newsletter writing business. . .

It's Only the Beginning for Uranium
Source: www.financialinsights.com (06/03/2005)

Dr. Richard S. Appel, author of Financial Insights, first became bullish on uranium in mid-2003, when it appeared obvious that its supply versus demand equation was fated to seriously drive higher its price. Since then, a series of events in the uranium industry has led Appel to believe that uranium prices will reach never before seen levels.

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