Carlos Slim is actively selling silver futures 2-3 years out, according to CNBC. Slim, a Mexican businessman and philanthropist, is the world's wealthiest individual, estimated at $74 billion as of February 2011. The report comes on the heels of the silver price plunging below $39 per ounce on Wednesday, after climbing to nearly $50 last week for the first time since the Hunt Brothers attempted to corner the market in 1980. With today's sell-off in the silver price, it has entered into "bear market" territory defined traditionally as a decline of at least 20%. Since reaching its 31-year high of $49.82 on April 25, the price of silver has now fallen 20.9% over the past seven trading days. Given the significant slide thus far in the silver price, it is difficult to ascertain if the report on Carlos Slim will further pressure the price of silver. In early evening electronic trading on Wednesday, the silver price showed an initially muted reaction to the Carlos Slim report, remaining near $39.40 per ounce. http://www.goldalert.com/2011/05/carlos-slim-actively-selling-silver-futures/
Holy shit this is scary. Whenever somebody this smart and this rich sells we should sit up and take notice. It will be interesting to see if any reason emerges for his selling.
The simple answer is to make money. He sells at a profit to either come back in when it is going to move up or invest in another opportunity. How many rich investors actually buy, hold and pray?
Which is why the reason he is selling is important. If he is selling to invest the money elsewhere that's fine. If he is selling because he thinks silver is overvalued then that's reason to be concerned. When you have that many billions of dollars you tend not to frequently trade in and out of an illiquid asset market like silver as it is hard to get in and out of positions.
He sold silver futures not physical silver. Nothing to see here He probably looked at COMEX physical silver reserves and studied the trends and deemed there were better investments to put his money into, less risk more return perhaps.
I think its just the silver mine he is associated with is doing some hedging? I read something on it but didn't think it much of a big deal.
Her e you go. I don't think its the one I read but still. Will be interesting to see if the backwardation talk starts to ease. http://www.cnbc.com/id/42904523
Hang on ppl, Once again, hold your horses ! Some sources are telling what they want you to hear......for whatever purpose that we know hey ! They want your metal ! Let's clarify the matter here.... cause this is becoming another misunderstanding just like the Eric Sprott's nonsense days ago.... Carlos Slim has been selling silver futures to hedge the production of his silver mine. So, he's getting rid of paper ppl..... and honestly, if he's got a silver mine, it's more than likely that he would be hedging himself in one form or other..... His end game is silver production.... MEANING PHYSICAL..... People people..... be very careful what source you read and what you take from it.... Fundamentals have not changed one zilt...... the only thing is changing is the players that want your metal....and they will do anything to get it..... u bet ! Media is so powerful and is used widely for manipulation at all times.... These scambags CRIMEX and commercial banks are actually doing silver tehnicals a favour..... we need a correction cause the way we were going, it was starting to become a little too hot..... even some have sold out on back of the fear..... This is a window of opportunity for the ones with vision on the big picture...... commercial banks and CRIMEX would not be doing these crazy margin raises and shorting if they weren't in big trouble chinatown ! If you can, add to your core, accumulate, top it up, or whatever you call it..... and look away..... 3 wise monkey technique is a must now..... And yes, you still can find physical from the weak hands or at some dealers at good prices.... you just need to source it.... and DO NOT be a emotional buyer.... look from the outside the box always. This is the best time to be in IMHO ! only in MHO... please DYOR and once again remember that next monday, 9th CRIMEX is squeezing it's customers once again..... so criminal..... http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv11-159.pdf take care all and keep stacking it. cheers
If he thought the silver price would be higher in 2-3 years from now he would not be selling futures/hedging. He is not getting rid of paper, he is taking it on. If he sees out his short futures contract then he will deliver that physical he mines in 2-3y into COMEX. If he has no intention of holding on to his short paper futures, then he only makes money if the price falls.
Perhaps with recent events he's thinking the market will stay flat for a few years, stability ? For all that US indexes are down again today.
He's got a mine. The spot price is at a high. His profit margin is at he highest it has ever been (spot price - production cost). So he tries to lock in that profit margin into the future by selling contracts for future delivery. What's the big deal? Sounds like a good idea if you own a silver mine.
Yes, I agree, if you own a silver mine it's a perfect idea to sell the futures and reap the profits. He's done a bloody good job IMHO. Silver is overvalued at the moment. The fundamentals have not changed, but the economy has changed, dramatically so, in just the past month. Word is out that the USA (and most of Europe, and Japan, and most of Asia) are facing an imminent deflationary collapse, the severity of which could even eclipse the deflationary depression of the 1930s. This is straight from the horses mouth. And you think silver is going to rocket to $100+/oz? I seriously doubt that.
