I also didn't understand the reasoning. When something is excessively shorted, eventually they have to cover their short position. That would cause it to rise. Of course if you are JP Morgan you just keep shorting and shorting and shorting silver with no end in sight. Takes deep pockets or backing to do that. Some claim that extreme shorting of gold and silver on the COMEX may eventually lead to a shut down of the market to ensure a orderly market when the shorts have to cover if prices continue to rise......in other words screw the longs at a set cover price.
John
Edited by John Burns 1/7/2010 01:00
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