Wednesday, May 25, 2011

Embry - Silver Market Extraordinarily Tight, Look for $125 [May 24, 2011]

When asked about the action in silver specifically Embry remarked, “Let’s face it, silver needed a correction because it had gone up in almost a straight line and people were talking about parabolas and what have you.  But the correction was amplified by the CFTC allowing or sponsoring five margin hikes in eight days.  Every time the price was getting pounded they put in another margin hike, so anybody that was long and didn’t have extraordinarily deep pockets had to puke the position.

But I think the most interesting comment someone said was, ‘You know in the long-term move in silver this will look like the blip in the ’87 stock market crash.’  Then, as you know, they killed it (stocks) in ’87 and the stock market proceeded to go up 5 or 6 fold.  I think silver will do exactly the same thing.  It’s irritating if you’re long on margin because you are going to get kicked out of the position, but if you know the game, it was just another opportunity to get some cheap silver.”

Read more @ ORIGINAL SOURCE

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