From ArabianMoney:Last summer ArabianMoney was rife with rumor about some serious short covering by the major bullion banks and an unwinding of their short positions. Once the shorts were out of the market we saw the impact on prices with a spectacular jump from $17 to $50.
Now it looks as though the Comex has given the bullion banks another chance to square their short positions this summer by raising margin requirements so dramatically this month, and thereby breaking a spike in the silver price that would have been ruinous to these banks.
Protecting shorts
It is not a repeat of the Hunt Brothers and their Arab investors in 1980. That was about bringing down a huge long position that had cornered the market. This summer has been more about protecting a short position, which would hardly be necessary if the bull market was really broken as market forces would have been sufficient.
Thus we are more than likely set for another take-off in the silver and gold markets in the autumn. This time it could be gold’s turn to take the lead with a spike from $1,500 to $2,000 an ounce, albeit after further price weakness over the next two months as global financial markets continue their current correction phase.....read on
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