The Price of Silver in the Age of Broken Promises

The price of silver remains at the mercy of the big banks that make of the majority of the short side at COMEX — which is still the primary paper pricing mechanism for silver.

Could silver prices go above $50 and beyond this year — and then perhaps retest $50 as a floor?

Concentration Matters

Remember that it is the concentration that matters most for the price of silver. It does not matter if those large silver short positions are hedged or if a long exists for every short, since that is a fundamental aspect of market driven pricing.

All that matters is that one or two entities hold the majority of that short position and therefore they can and do influence prices. This is the same story that has been told over and over by Ted Butler and GATA for decades.

Read more: SilverSeek.com, 26 January 2013