https://www.commoditytrademantra.co...greatest-lie-in-history-of-market-regulation/
This is an old article but highly pertinent, I believe, to what we are seeing happen in precious metals markets today. The short positions were no problem as long as nobody wanted physical delivery of the metals. However, several large contract holders demanded delivery which required that the shorts deliver not a piece of paper or cash but come up with silver, which they had essentially sold, that does not exist. This is driving the price higher as they are forced to acquire the metals and will likely, in my opinion, continue to do so. People will start to trade on momentum and it will become a self feeding organism.
This is an old article but highly pertinent, I believe, to what we are seeing happen in precious metals markets today. The short positions were no problem as long as nobody wanted physical delivery of the metals. However, several large contract holders demanded delivery which required that the shorts deliver not a piece of paper or cash but come up with silver, which they had essentially sold, that does not exist. This is driving the price higher as they are forced to acquire the metals and will likely, in my opinion, continue to do so. People will start to trade on momentum and it will become a self feeding organism.
