Butler: “Silver Blowback”

Ted Butler’s latest article is a good read. Excerpt:

Blow Back

We have actual retail silver shortages and prospective industrial shortages for one reason – the price is too low. The very last thing that will remedy a shortage is lower prices. Sharply lower silver prices will only induce further shortage. It is, quite literally, like throwing gasoline on a fire. It is only a matter of time before the new lower prices stimulate more demand, both for investment and user inventory further restricting supply. This is the essence of the law of supply and demand.

The urgent rush by the manipulators to liquidate every margined long by rigging lower prices, must be done before those lower prices activate the new physical demand and curtail physical supply. There is a blow back phenomenon at work here – at some point the artificial low prices will trigger a price explosion.

Take heart, my friends. The current smashing of the silver market is a pressure cooker. The fully-paid physical 100 oz bars you have tucked away guarantees you are already positioned to ride the rocket to the top.

I believe the countdown has started. If seconds were months I think we’re at
“t minus 5…”

◊◊◊◊ Now: Gold @ $780.70, Silver @ $11.50, USDX @ 79.45 ◊◊◊◊
◊◊◊◊ Now: DJIA 11,230.73


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