In January 2011, Silver got beaten down from $31.00 to $27.90.
In March 2011, Silver went from $34.00 to $38.00.
Then, in April 2011, Silver soared from $38.00 to over $49.00 per ounce.
There is no doubt that a lot of speculative money was starting to enter the fray towards the end of the winter run.
However, in futures markets, huge moves like we say from August 2010 - April 2011 are often the result of short squeezes.
And have no doubt, this is exactly what happened in Silver.
The same thing happened with Cotton just a few months earlier and the Commitment of Traders Report tells us that the commercial traders (which includes JP Morgan) were covering their shorts massively.
Back in August 2010 the size of that naked short position was 25,412 contracts.
This is why Silver rose so dramatically in value.
This is an increase of 4.05 Million ounces to the manipulative short position in silver in a single month. More importantly the total naked short position is up to 24,584 contracts.
Worldwide demand for Silver and Gold during the latest phase of the Sovereign debt crisis is going berserk. Rather dampen demand and drive investors away from the metal because it is too volatile, buyers continue to accumulate Silver.
Another short squeeze is looming on the horizon... with a corresponding huge jump in the price of Silver.
Are you ready to take advantage of it?
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