Silver Commercials, heavy net short...selling Options

[Tor]

According to my work, there should be a decent sell off in silver from current levels.

Currently 20 USD, but should correct down to 17.5 USD.

Bull trend can remain in place basis these levels. I am thinking in terms of parabola basis a dollar collapse to 40 in due course.

This post has been edited by Tor: Mar 1 2008, 06:48 AM

[rono]

According to my work, there should be a decent sell off in silver from current levels.

Currently 20 USD, but should correct down to 17.5 USD.

Bull trend can remain in place basis these levels. I am thinking in terms of parabola basis a dollar collapse to 40 in due course.

Howdy Tor,

Hey, gold and silver both are looking huge overbought, but I'll wait for them to crack before I lighten up. The gold/silver ratio's dropped from 53 to 1 to 49 to 1 in a week or so and from the beginning of last year it's down from over 70 to 1. The historic ratio is 15-20 to 1 and indeed, at the peak of the last bull market in 1980 gold topped at $850 and silver at $50 . . . or 17 to 1.

However, I had expected this historic relationship to resolve itself later in the big bull market - in a few years when things are really starting to get nuts - like gold north of $2000 or $3000 and silver pushing $100. But, gee, I'm long so if the market wants to pay me now, who am I to doubt the wisdom of the market?

But, I am expected a seasonal pull back for both gold and silver starting sometime this spring and lasting thru summer. I'm just not sure when.

Most importatly, I am NOT going to anticipate a pull back and pull off my trades. Folks, we're in the sweet spot of the market right now. These are the times we live for - don't question, don't doubt, just get your *ss long and ride this sucker.

peace,

rono

[SilentOne]

hi Tor,

The silver market is a crazy beast. The spikes are incredible and the corrections are horrific. I've never seen any other instrument correct so hard, so quickly on a consistent basis. The ultimate metal for speculation.

I accumulated most of my silver bullion at 6.5 - 7.0 US. I purchased 1 kg bars, 1000 oz. bars, Maple Leaf 1 oz. coins and 1 kg. Kookaburras (thus the avatar). I suggested to so many friends to buy some silver and of course none did. I was buying this LT chart at the time.



So now you tell me where we stop for a correction. I can see $25 if it continues to climb this month. But who knows really?

I have been gradually selling as I feared having to move or store 14,000 oz. Not an easy thing when you consider that is almost 1000 lbs or 1/2 metric ton. I sold some more at this morning's fix and will hold about 1/4 of my original position LT. Same strategy for my Krugers. So the metal is free. Thank you Mr. Market.

We start packing for Canada in 10 days. We have been 10 years in the UK and it has been a great experience.

cheers,

john



This post has been edited by SilentOne: Mar 4 2008, 06:44 AM

[dharma]

thanks for the chart silent one, good luck w/your move!
dharma