There is a conspiracy theory that 8 large traders, in large part, control and manipulate much of the gold and silver markets. The tale goes that these traders aim to keep gold/silver prices low by manipulating the market with their massive short positions.
I never really bought into this theory – until yesterday. With the rallies in gold and silver suddenly reversing course (especially silver, which was down nearly $1 yesterday), it sure made me wonder, especially with all signs heading into the week pointing up.
Here’s some interesting food for thought on the silver market by Ted Butler.
I’m still holding my position. It sucks to be down big on this position, but as a longer term trader, I can’t really sell unless it breaks below 17. My position is probably too big – I should have bought a mini, so that I could be adding to my position now after this firesale. But hey, everything makes sense in hindsight.