eric_cartman
Member
- Joined
- Nov 19, 2007
- Messages
- 1,524
a guy on CNBC said that gold (and i guess silver also) will have a huge upward spike when the massive short positions are forced to cover (and ultimately default).
http://www.cnbc.com//id/15840232?video=880574352&play=1
so does anyone know when these contracts expire?
the GATA people and many others believe that the short positions in gold and silver are gigantic, and therefore, when they are forced to cover their positions and actually have to go into the market and buy up gold and silver, it will send the price soaring... possibly doubling the price in a very short period of time. my other question is whether or not these contracts can be extended, and possibly extended indefinitely? my understanding is that these short positions are so large, that it will literally be impossible to buy up that much physical gold and silver and they will be unable to deliver the physical metal. therefore, they will default and have to pay out in cash, rather than in the metals themselves... so maybe the fed will have to come in and lend these institution enough cash in order pay off the dollar value of their short positions. and assuming that naked shorting was used, there are people who are owed gold and silver, but will instead be paid in dollars. therefore, there must be some people out there who hold paper gold/silver and believe that there is metal backing that paper, when in fact there is no metal to back up that paper and they will end up getting paid in dollars rather than gold/silver. i had heard someone say that for every one ounce of real gold, there is 140 ounces of paper gold... meaning that for every person that owns real gold, there are 140 other people out there who think they own gold, but they do not actually own any real gold, all they own is someone's promise to pay you the dollar value of the gold price. i personally believe that the ETFs like GLD and SLV do not have all the gold and silver that they claim to have, and not all their shares are fully backed. because if someone is able to naked short the ETFs, it means they were creating fake shares that were not backed by any metal and selling them to people... and therefore the only thing backing those fake shares is the naked shorter's promise to pay the dollar value of the metal.... and as metal prices rise, the naked shorters will go broke, and be unable to honor their obligations.
http://www.cnbc.com//id/15840232?video=880574352&play=1
so does anyone know when these contracts expire?
the GATA people and many others believe that the short positions in gold and silver are gigantic, and therefore, when they are forced to cover their positions and actually have to go into the market and buy up gold and silver, it will send the price soaring... possibly doubling the price in a very short period of time. my other question is whether or not these contracts can be extended, and possibly extended indefinitely? my understanding is that these short positions are so large, that it will literally be impossible to buy up that much physical gold and silver and they will be unable to deliver the physical metal. therefore, they will default and have to pay out in cash, rather than in the metals themselves... so maybe the fed will have to come in and lend these institution enough cash in order pay off the dollar value of their short positions. and assuming that naked shorting was used, there are people who are owed gold and silver, but will instead be paid in dollars. therefore, there must be some people out there who hold paper gold/silver and believe that there is metal backing that paper, when in fact there is no metal to back up that paper and they will end up getting paid in dollars rather than gold/silver. i had heard someone say that for every one ounce of real gold, there is 140 ounces of paper gold... meaning that for every person that owns real gold, there are 140 other people out there who think they own gold, but they do not actually own any real gold, all they own is someone's promise to pay you the dollar value of the gold price. i personally believe that the ETFs like GLD and SLV do not have all the gold and silver that they claim to have, and not all their shares are fully backed. because if someone is able to naked short the ETFs, it means they were creating fake shares that were not backed by any metal and selling them to people... and therefore the only thing backing those fake shares is the naked shorter's promise to pay the dollar value of the metal.... and as metal prices rise, the naked shorters will go broke, and be unable to honor their obligations.
