Heard In The Pits: Traders Making Moves Into Silver To Exploit Cash Settlement Premium

``Blythe's former traders are advising major hedgefunds and billioniare investors to buy up as many contracts as possible as March 1 approaches and deposit the cash needed to stand for delivery for the month of March. The purpose is not necessarily to bust the Comex but to force the Comex to pay a premium (some as much as 30 percent) for cash settlement.''

Finally traders have caught on to a way to keep profiting from the physical tightness in the silver market (and the scam run by COMEX, which cannot possibly deliver a significant fraction of silver owed). Basically they stand for delivery at the end of the contract period, but don't really care if they get silver -- they are more interested in booking the cash profit for settling in cash.

This strategy should keep working as this silver price gradually ratchets up (and in turn, it will be a factor moving the price up), and keep working until the physical shortage is relieved (that is, silver reaches a market-balancing price).

Essentially, traders are "calling the bluff" of the COMEX and the silver price suppression cartel.