
	The Largest Short Position in History and the Coming Short Squeeze David Zurbuchen

		Just what is a short? In essence, shorting is the opposite of holding a 'long' position in something. Thus, as a 'short', one anticipates a certain stock or commodity to perform poorly. A more thorough definition for shorting reads as follows: The selling of a security that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller. Short sellers assume that they will be able to buy the stock at a lower amount than the price at which they sold short. This risky assumption can lead quickly to a 'short squeeze' which happens when the following occurs: The price of a share rises and investors who sold short rush to buy it to cover their short position and cut their losses. This, in turn, drives the stock price even higher, resulting in many more short sellers feeling compelled to cover their positions. Short positions of this description (perhaps other types as well, such as the infamous 'naked short') have existed on New York's Commodity Exchange, Inc. (COMEX) for the past 20 years. The extraordinary thing regarding the silver short position is that of all the other commodities listed on COMEX, only in the case of silver has there existed a short position larger than that of the total world production and known world inventories combined. I guess that means silver wins the 'boobie' prize? But every coin has two opposing faces, because when shorting something, one runs the risk of having to buy their shares back with limitless losses, that is, when those on the 'long' side choose to take physical delivery of their silver. Thus, when the price of silver really starts to rise, the short players are going to be forced to cover—that is, buy back their shorted shares—which will, in effect, turn this long bearish trend into a stampeding bull of colossal strength as more and more of the doomed shorts fold. They will try to buy back their physical silver, but being in such 'short' supply, this will only serve to push the price higher and higher until one day it might finally reach its true free-market price. Upwards of $100 an ounce is not unreasonable, and I look forward to the day as I continue to put my money where my mouth is. Silver in Scripture Home Disclaimer: This material is not copyrighted, and I encourage its reproduction as long as my name and website are mentioned. Make sure you do your own due diligence before investing in any stock or commodity. I am not* a financial advisor.