"While stock prices have headed south this year, the shares of gold and silver equities (outside a few selected juniors) have not fared much better. As the price of bullion soared, the short position in gold and silver shares continues to increase on a monthly basis. Last month was no different. The short positions of many Canadian, South African and American gold and silver equities have risen substantially. (posted when available on Short Positions) More and more short positions are necessary in order to keep share prices suppressed in the face of falling equity markets even as the price of bullion has risen. Recently, commercial short sellers have been reducing their bullion short positions as reflected in the Traders' Commitment Table, now a weekly feature on our precious metals resource page.
We will also be listing the major short positions in equities and soon the short position in quality junior mining stocks on our gold site. I will be featuring (time permitting) a story on how you can use these short positions in bullion and in equities to your own advantage. It is a story about David and Goliath. The same strategy of using five stones to slay the Philistines can be used to slay the short seller. You will learn how to leverage your buying power at the short sellers expense. In essence, let them subsidize your purchases.
Speaking of value, several of the companies listed above are now selling at less than a third of the price of the bullion when viewing total reserves. These companies not only offer and pay attractive dividends but also sell at prices that are less than the value of their reserves. Please refer to my Wrap Up in archives from February 13th where I cover these ratios."
Jim Puplava - http://www.financialsense.com/Market/daily/monday.htm
"The point at which a competitor is pursuing the best possible strategy, given the strategies of the other participants" - John F. Nash
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