« CCAA is not just a Cdn problem, Mon., Jan. 30, 2006, 11:32 AM | Main | Steel group rockets ahead with Stelco in CCAA, Mon., Jan. 30, 2006, 4:09 PM »
January 30, 2006
Silver squeeze underway, Mon., Jan. 30, 2006, 1:08 PM
There is no doubt in my mind that the SEC notice preceding the listing of the Silver ETF (SLV) has caught a few shorts by surprise. The price of silver continues to rocket north.
Kitco also provides charts of the lease rates for silver. Note that the rates have also taken off like a rocket. But if you don't control the physical and it's time to make delivery, you have to pay the piper.
Traders in the silver equities can relax for a while I think. But if the shorts and the lobby group known as the Silver Users Association (probably supported by the shorts) are able to convince the SEC to extend the pre-launch window, then silver prices would likely drop like a stone.
It would be nice to think that "private equity" groups were short. It would be interesting to see if they could buy off the SEC, or if free markets are going to be permitted to continue.
P.S.: 1:17pm ET
Gold (Feb-06) is up +$6.30 to $565.10. This is why it's called "hard money". :-)
Posted by Posted by Bill Cara on January 30, 2006 01:08:30 PM | Category: Bullion