Silver Hedging By Miners A Big Mistake

And don’t buy any kind of ‘paper’, only physical silver (or gold) is real these days, everything else is an illusion.


With silver closing at multi-decade highs and gold approaching $1,400, the Godfather of newsletter writers Richard Russell in his latest commentary stated, “The Dollar remains weak. As a store of value, the dollar has failed. This is the dreaded secret that the Wall Street Journal will not even mention. Instead, they prefer to bad-mouth gold. Throughout 5,000 years of history, gold has served as an effective store of value. No fiat currency has survived as long as 100 years.”

Russell continues:

“The Dollar remains weak. As a store of value, the dollar has failed. This is the dreaded secret that the Wall Street Journal will not even mention. Instead, they prefer to bad-mouth gold. Throughout 5,000 years of history, gold has served as an effective store of value. No fiat currency has survived as long as 100 years.

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I wrote before that the silver miners have re-started their hedge books for silver at around 29-30 dollar silver. This means that they thought silver was “high enough,” and they were selling their silver forward, because they thought that silver was as high as it was going to go. In effect, the mines were short their own product. As for the mines — big mistake. Rising silver is either wiping out their profits or actually costing them.

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The underwater short position has become a nightmare and there seems to be no escape that does not involve tremendous pain.

Full article here: King World News

More on gold and silver:

Silver:

Silver: Short Squeeze Could Be the Big One – Reaches New Multi-Decade High – Still In Backwardation

Massive Short Squeeze in Silver, Gold to Hit New Highs

London Source: Asians Buying SLV to Take Delivery of Silver

COMEX Silver Inventories Drop To 4 Year Low. COMEX Default Or Hunt Brothers Redux?

This Past Week in Gold and Silver

‘US Silver Term Structure Inverts As Supply Tightens’ – Reuters Article On Silver Backwardation

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Silver Bullion Backwardation Suggests Supply Stress

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Silver Is Already In Extreme Backwardation! If The Same Happens With Gold, Then The End Game For The US Dollar With Hyperinflation Is Near

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Eric Sprott: Expect $50 Silver, Gold Possibly $2,150 by Spring

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BullionVault.com Runs Out Of Silver In Germany

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Silver Derivatives – China and JP Morgan

Max Keiser: Want JP Morgan to Crash? Buy Silver!

Max Keiser: Crash JP Morgan – Buy Silver!

JPMorgan Silver Manipulation Explained (Must-See!)

Gold:

Probable Black Swan Event Equals Gold Explosion

Richard Russell: Possibility of Gold Breaking to New Highs

Brazilian Billionaire Eike Batista Reaffirms $1 Billion Bid for Ventana Gold

Americans Will Flock Into $5,000 Gold and $500 Silver

Chinese Have A New Method To Buy Massive Amounts Of Physical Gold, Bypassing Comex And Any Form Of Delivery Limits And Problems

Gold This Decade!!!

‘GoldNomics’: Cash or Gold Bullion?

George Soros’ and John Paulson’s Biggest Holding Is GOLD

China, Russia, Iran are Dumping the Dollar, Buy Gold And Silver

Gold and Gold Mining Shares As a Percentage of Global Assets or ‘The Once In a Lifetime Ride’

And don’t forget to do this (!!!)…

James G. Rickards of Omnis Inc.: Get Your Gold Out Of The Banking System

… or …

US DEPARTMENT OF HOMELAND SECURITY HAS TOLD BANKS – IN WRITING – IT MAY INSPECT SAFE DEPOSIT BOXES WITHOUT WARRANT AND SIEZE ANY GOLD, SILVER, GUNS OR OTHER VALUABLES IT FINDS INSIDE THOSE BOXES!

Related information:

Tungsten Outperforms Gold, Returns 70 Percent In Last Year (And we all know exactly why!)

Alert: Get Out of Your Dollar Assets Now!!!

The Ultimate Cost of 0% Money

These Central Banks Are Printing Money – Prepare Yourself

Quantitative Easing Explained

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