Silver Surges to $21 overnight

Gold

Last night, while US markets prepared for a lazy 4th of July Monday, Silver declared its own independence. During Asian and London hours it surged over 7% and traded above $21 for the first time since 2013.

Why?

Short Squeeze- thats no crime, it's what happens when you are overleveraged and not looking at systemic portfolio risk
China's Yuan hits a recod low- this signals that the competitive devaluation is in full force globally
Long weekend- As in 1994 when Silver was manipulated by Phibro on a 4 day weekend, so now the holiday gives opportunity to those that know how to use market structure to their advantage.
Gold Silver Ratio- a relic of a time long ago, it is still used by technical traders and has merit.

What to Watch for:

Open Interest on short side dropping- bullish if funds reducing.
Comex margins being raised- if shorts covering bullish, if longs adding, bearish
Some fund announces redemptions- wont hear that until after the news

Bullion Banks Are Only Bullish on their Wallets

For years the Bullion Banks made their money stopping out long hedge funds at rollover time in silver. Those funds couldn't take delivery and had to roll or close.We saw it and actually took delivery (for a day) on occassion to test the concept. But now the market is ripe for rallies with the EU, GBP, and Yuan all devaluing. What is left to devalue against? The USD and real assets. And once the Yuan devalues, who is left but the US Fed. So if you have access to physical you are in the drivers seat. "And it is far easier to engineer a short squeeze if you are custodian of the Individual stock, Silver, Gold, or whatever it is that is in demand"- Vince Lanci (@vlancipictures)

"He who owns the Silver, makes the Rules"- poetic license

All Fiat currencies are circling the drain in a race to export their own deflation. As stated Here on zerohedge, "QE only works if you are the only country doing it."

We will be posting detailed insights into the above 3 reasons in a couple hours after coffee and alka seltzer.

Stay tuned. In the meantime the trail starts here with the fortuitous dismissal of the JPMorgan Silver Manipulation case last week

Those shorts who didnt cover will NOT be getting a car from Oprah Tuesday.