I can find no one who things COMEX silver is fairly priced

[Spartacus]

no one

Even Szabo, who usually leans in the direction that the price is "fair", (I suppose for some value of the variable "fair") blogged that it's the shorts run wild.

Which begs the question - who is legitimately on COMEX now for Silver?

The shorts have been given the keys to the insane asylum rooms, the keys to the drug lockers, the keys to the dart guns and the elephant tranquilizer darts.

When one can get Silver exposure via the ETF, who in their right mind is now trading long Silver on the COMEX?

Makes no sense to me. May as well dress yourself in a shirt, pants and underwear made of bacon and walk into a viper pit (I'm no expert on viper diet, but the picture's kind of funny, so ... )

I seriously considered throwing money hand over fist into call options when Silver hit $12.8 until I realized - they'll be ON THE COMEX. I can't get a CBOT account for some reason, but I'm suspicious whether the same business runs both exchanges, or the same players have de facto control over both exchanges.

[Guest]

Re: I can find no one who things COMEX silver is fairly priced

I seriously considered throwing money hand over fist into call options when Silver hit $12.8 until I realized - they'll be ON THE COMEX.

Spartacus - surprised you seriously considered this. "Throwing money hand over fist" into options on silver does not seem to me a prudent move. There are one or two analysts out there with decent reputations suggesting this was by no means assured of being the base of silver's decline. Even if there were overwhelming consensus that it was, this would still be a very impulsive game to play IMHO. Options on gold are already risky enough. You want to "call the bottom on silver", play it with options, you are either one of a very select small circle of top pros, or the money to play with leverage in silver is burning a hole in your pocket.

Why on earth would you not be satisfied with piling more long term positions on in silver at $12.80 if it's got such excellent prospects at a double (or triple) in the next 4-5 years off of such a low price? That's where the smart, patient ones put a larger chunk of their serious money in if they are well convinced of silver's future. They are well satisifed with a 200% return in 5 years, and then they go play canasta, or bingo, instead of playing the futures. I'm surprised a guy with your experience would consider venturing into that, particularly "hand over fist".

I have some Russian friends here in San Diego, who asked me if they should sign up with MONEX's silver program, where they provide margin accounts and timing advice for you to trade this metal. I told them I'd avoid MONEX like the plague, because the very fact that MONEX offered such a program for the silver metal told me they were a little too cowboy in this area than would be suitable for the vast majority of investors and savers.

They thanked me and took the advice. I subsequently read somewhere this past weekend that MONEX are being investigated by the Internal Revenue for 380 million USD tax evasion? Evidently this outfit has been on the edge of respectability for a while, or in an immoderate haste to get ahead. The conjuction of margin accounts in silver with this type of history are a perfect fit. Margin, options and any time of speculation in the gold market is risky enough. In silver it's a cherry-bomb in my opinion.

I otherwise find much of your commentary on silver excellent. Just don't agree with this particular temptation.

U.S. sues Monex for $378 million in back taxes - OC Business News ...

Respectfully,

Lukester