" ... this liquidation leaves the silver market in a much healthier position,” says IRI president, Jim Cook. “
Minneapolis, MN (PRWEB) February 24, 2010
Are the recent silver short contract buy-backs by COMEX commercial accounts a precursor to a significant increase in the price of silver? Yes, according to noted silver analyst, Theodore Butler, in an interview about to be published by Investment Rarities, Inc., a Minneapolis-based investment firm.
Butler contends the actions will help clear the way for a significant price increase in silver “because the concentrated holdings of silver short contracts, held principally by commercial banks, has been artificially depressing the price of silver.”
Since January, the big COMEX commercial shorts, including J.P. Morgan, have bought 24,000 silver short contracts, the equivalent of 120 million ounces of the precious metal, according to the latest “Commitment of Traders Report” released by the Commodity Futures Trading Commission (CFTC).
“This is one of the biggest short contract coverings in recent years,” Butler notes, “and it wasn’t accidental. In effect, the liquidation caused the price of silver to drop $4 an ounce, which allowed the COMEX commercial banks to temporarily repurchase a large portion of the significant liability they have in silver futures on COMEX at a lower price.” Since the liquidation, silver prices have recovered to their current value of $16 an ounce.
“According to Mr. Butler, this liquidation leaves the silver market in a much healthier position,” says IRI president, Jim Cook. “He believes it’s a good time for anyone who wants to take advantage of it because silver prices could be ready to skyrocket.”
To read Ted Butler's analysis on silver position limits and market activities, visit http://www.investmentrarities.com/ted_butler_comentary02-16-10.shtml
ABOUT THEODORE BUTLER: Theodore Butler is a private investor, trader, and chief analyst at Butler Research, LLC. Originally from New York and now residing in Florida, Butler has over 35 years experience in commodities and futures. Butler has served as a consultant and analyst to Investment Rarities, Inc. for 10 years. Website: http://www.butlerresearch.com .
ABOUT INVESTMENT RARITIES, INC.: Investment Rarities Incorporated (IRI) has been helping clients preserve wealth with gold and silver for over 35 years. The company has delivered over two billion dollars in coins and bullion to their customers. For more information visit Investment Rarities, Inc. at http://www.investmentrarities.com. Call toll-free at 1-800-328-1860. Follow IRI on Twitter at http://twitter.com/IRIMetals. Subscribe to IRI’s YouTube Channel at http://www.youtube.com/user/InvestmentRarities. Visit the Investment Rarities’ “Pedal to the Metals” silver blog at http://www.silverandgoldcoinblog.com