Richard Russell – Silver Interesting, Massive Short Position

Richard Russell continues:

“Their reaction — they call their broker and shout, ‘I can’t take it anymore.  Buy my shorts — I don’t care what the price is — I’ve had it, and I want out.  If I ever hear the word “short” again, I’ll shoot somebody!’”

Russell also covered silver: “Silver is beginning to look interesting to me.  About a month ago, I showed charts of silver mining stocks that had exploded.  This suggested to me that something bullish was coming up in silver.  Since 2003 silver has gained 1,012%, and in doing so it has outpaced gold.

At present the overgrown supply of silver is dangerously low.  This sets us up, say silver experts, for a huge squeeze on the silver shorts.  On the Comex there is currently a giant silver position, a position that almost dwarfs the available supply of free silver.

The chart below looks interesting.  Silver reversed a declining trendline and then silver dropped to test its 200-day MA, where it held.