Max Keiser says silver will go to $500 an ounce

[soryang]

The master of hyperbole says JP Morgan is short 3.3 billion ounces many times the world annual supply. Facing roll over tomorrow after unsuccessful attempt to keep price below $25. $25 is now the floor per Keiser.

I read the article he is using to source his opinion. I think he is off by a factor of ten. He is using the $50 price from the last silver craze to make his calculations. I would use the average $5 an ounce figure from before the spike as the more meaningful base. Even if you allowed for greater industrial use, the outrageous short positions, less above ground silver, and "peak silver" in the world reserve picture you might get to $100 in a short squeeze which would ultimately be addressed with margin rule changes and stop trade tactics by the exchanges and ultimately the governments involved. The powers that be tried to put a top in last week in metals markets with margin rule changes. I expect more in the future. A major lawsuit is pending against JP Morgan for silver market manipulation.

http://www.maxkeiser.com /

[Vincardog]

1. When?

[soryang]

2. Good question

I didn't see where he specified a time.

[Mojorabbit]

3. I'd love for it to be true

as I would pocket a tidy sum but I can't see it happening.

[soryang]

4. Right

I saw a brief line in another report that one of the big commodity futures trading exchanges was considering position limits on contracts for physical delivery of gold. Because this has to do with the value of the dollar, I think the price is unlikely to get out of control.

[Art_from_Ark]

5. $25 does seem to be the floor right now

There are a lot of factors at play here, some working in silver's favor, some against it. Silver going to $500, at least in the short run, is certainly hyperbolic. As you imply, the $50 price from the last silver run-up is meaningless, first since no one was buying at that price, and second since the market was being manipulated by the Hunt Brothers. However, I don't know if the $5 price would be appropriate, either, since the market was purposely kept depressed for a couple of decades as the US sold off its silver stockpile, ultimately depleting it about 10 years or so ago.