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Pent Up Silver Demand and The CFTC Linchpin

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Pent Up Silver Demand and The CFTC Linchpin Powered By Docstoc
					Pent Up Silver Demand and The CFTC Linchpin

As scandal after financial scandal take their toll on public confidence in the economic morass
curiously called the financial system, what will be the trigger for a short covering panic in the
metals markets?

With countries the size of Spain lining up to get bailed out and a lagging global economy, the
United States is not that far behind Europe as individual states and local governments find it
harder to stay afloat. Consequently, what you can purchase with a U.S. Dollar will continue to
diminish.

The inventories for precious metals are dwarfed in relation to the amount of paper silver
contracts used to keep prices controlled. When the eventual covering of contracts occurs, heavy
buying will come from the large entities that unofficially represent or are literally the working
arms of the central banks, exacerbating the panic.

Chilton Refutes FT Article

On August 5th, the UK financial daily, the Financial Times published an article entitled, “Four
Year Silver Probe Set to be Dropped”. The article began with, “A four-year investigation into the
possible manipulation of the silver market looks increasingly likely to be dropped after US
regulators failed to find enough evidence to support a legal case, according to three people
familiar with the situation.”

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Description: Exchanging paper for silver can still be accomplished with relative ease. This may not be the case once supplies are exhausted by disproportionate demand.