All week I have been reading stories of various countries and governments' buying and hoarding silver.
I believe this. I also believe supplies are tight or virtually non existent. A story has been circulating that JP Morgan has huge derivative exposure if silver rises above 36... that they are going to get their ass handed to them if silver creeps beyond 37.
I don't know if this is true. I do know that an absolute battleground has emerged at 36. JP Morgan and HSBC are shorting silver like crazy at this level. In fact it is so predictable, that I'm not sure that anyone who follows silver is really surprised. Until the CFTC IMPOSES POSITION LIMITS, I guess Morgan will continue to create short paper irrespective of underlying supply.
I am not afraid to add silver here. You'll want to own some when Bernank announces QE3 for all of the muni bond defaults this year. Still think silver is worth 75 bucks. Really.
Man, when Carlin said the game is rigged- he wasn't kidding.