Friday, May 6, 2011

Huge sell-off in silver and other commodities. Opportunity?

By Nick Sorrentino

CNBC reports that silver is down to under $36. It nearly breached $50 about a week ago. This sell-off seems to have coincided almost exactly with the Osama take down. Interestingly both George Soros and Carlos Slim sold large silver positions at the same time. Or at least that is what was leaked.

The CBE also raised the margin limits 5 times in 8 days, forcing people to cover their positions. This is why you buy physical stuff people.

The point is there seems to have been a coordinated effort here to bring silver down, along with gold, and boost the dollar on the OBL bump.

Who knows, maybe not. But that's what I'd do if I ran the printing presses and the government and didn't care where my soul resided for eternity.

Remember also early in 2010 Soros said at Davos that gold was in a bubble and the gold market sold off. See HERE. This in January 2010.

Then, surprise surprise he turned around and doubled his position in gold 20 days later. This after prices had come down of course. See HERE.

I'll be watching to see if he moves back in. So will the world.

I think the sell-off is probably a blessing in disguise. In the short term the margin limit increases will have the continued effect of forcing people to cover thier positions, which will in turn force the price down, and then force more people to cover.

But for those who are buying silver not to make fiat dollars but to amass real wealth this is probably an opportunity.

Let's not forget guys that JP Morgan has a GIANT short position in silver somewhere in the mid teens. As silver gets more expensive the more they sweat. JP isn't about to let the SILVER LIBERATION ARMY take it down.

About Me

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Nick Sorrentino is the Editor of The Liberty and Economics Review and CEO of Exelorix.com a social media management company.