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Will Sprott's Brand New Physical Silver Trust Become JPMorgan's Biggest Nightmare?

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July 15, 2010 – Comments (4)

A lot of people have already written about Sprott's new Silver Trust, so I will not add to it substantially. I just really liked the title of this post by ZeroHedge :) - Will Sprott's Brand New Physical Silver Trust Become JPMorgan's Biggest Nightmare?

4 Comments – Post Your Own

#1) On July 15, 2010 at 2:30 PM, silverminer (31.27) wrote:

Oh yeah!

Silver is the logical market for the pm squeeze to take place. It would then trigger the squeeze in gold, but it may very well begin in silver.

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#2) On July 15, 2010 at 2:34 PM, outoffocus (22.82) wrote:

Silver is the logical market for the pm squeeze to take place. It would then trigger the squeeze in gold, but it may very well begin in silver. 

The sheer absurdity that these market disallocations are allowed to persist for so long cause me to lose faith in the correction (short squeeze, treasury bubble pop, so on an so forth) even happening. I guess I need to keep the faith.

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#3) On July 15, 2010 at 2:58 PM, binve (< 20) wrote:

silverminer,

>>Silver is the logical market for the pm squeeze to take place. It would then trigger the squeeze in gold, but it may very well begin in silver.

I like the way you think :)

outoffocus,

>>The sheer absurdity that these market disallocations are allowed to persist for so long cause me to lose faith in the correction (short squeeze, treasury bubble pop, so on an so forth) even happening. I guess I need to keep the faith.

I think the longer they persist (and not becuase of natural market forces, but because of propping and/or manipulation) the worse it will be when they do break down. A lot of us see it coming, but macro events never happen quickly (in terms of duration until an event), but I think the event will happen very quickly when things break.

Take 2008. The wave down that created all the destruction (From 1300 to 750) took 3.5 months to complete. A 42% drop in 3.5 months. From 666 to 1200 took 13.5 months. The old adage is true: It is easier to break than it is to build (especially if you have a bad foundation) :(..

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#4) On July 15, 2010 at 3:40 PM, binve (< 20) wrote:

outoffocus, Here is a good article that shows some excellent insight into how the gold / silver paper vs. physical market is breaking down and how this is manifest in macro moves: http://jessescrossroadscafe.blogspot.com/2010/07/why-are-bis-gold-swaps-important.html

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