A. It is not entirely clear there is such a squeeze
B. If it is indeed major players who are caught in a short position, they will crush anyone that attempts to squeeze them. They will change rules and do whatever it takes to break such a squeeze.
C. You will not win
Those doing the supposed squeezing are quite a mixed group, as one EPJ Daily Alert subscriber wrote to me:
A few blogs...have been awash in rumors that major players are hopelessly short in the paper market for silver. I think I'd be over stating the case only a bit if I said the rumors have gone viral. I take these rumors with a giant grain of salt but there's a whole subculture of blogs now carrying this information with hundreds if not thousands of commenters claiming they're dumping their 401(k)s, IRAs, savings accounts, insurance policies, credit cards, etc. into physical silver. I can't help but think the silver market is running face first into a mania that will all end in tears. In addition, producers are claiming marginal prices of around $5/oz. At today's spot prices, that's probably a $20-$25/oz spread. I can't see that lasting as even the most marginal producer can probably turn a profit on those spreads. Other bloggers are also reporting boiler room type setups attempting to cram silver and silver stocks down the throat of any widow willing to listen.And, now, we have the ultimate silver warrior, Charlie Sheen. Sheen is egging the CFTC on to squeeze the silver shorts. According to FT, Sheen has taken time from his marathon interviews, and quality time with his goddesses, to write the CFTC with his very own magic fingertips to call for a reduction in contract limits for any one
The battles of a great warrior never cease.
I repeat, to anyone thinking of squeezing the silver shorts, leave this battle to Charlie. Only a man with his magical power will win this battle.