Silver Short Squeeze Alert?



Something is not right in Silver's behavior. UPDATE AT BOTTOM

Today Silver was up 6.74% in Comex prompt month July

  • Part of the futures curve is now in Backwardation ( random spots, but it is happenning)
  • Spot is still trading under prompt futures. (so no bonafide physical squeeze yet)

So what gives? We feel likelihood is one of the following things:

  1. Someone has a margin call from other products and is unwinding (maybe a Gold/ Silver spread)
  2. A miner is caught on the wrong end of a delivery and is covering (unlikely with the Buffet history lesson)
  3. Silver may be gettting ready to be delivered to a different vault in the far east (also unlikely, but not crazy)
  4. Something we just havent figured out yet.
  5. Silver cures cancer. ( actually it is a cancer preventative, but lets not go there)

What to watch for:

  • Look for a margin hike.
  • Read the COT tonight for Open interest changes

For the record it is far easier to manipulate Gold lower than it is to push it higher.  The opposite is true for Silver

Focusing only on Silver:

  1. It is not watched closely by the FED as an inflation indicator. (Gold is)
  2. It is consumed and has qualities of an industrial commodity. (Gold is not)
  3. Much of its above ground supplies are in the hands of a few players ( Gold is globally held by Gov'ts)
  4. Silver Miners have in the past been lax in their hedging programs. Actually hedging metal they havent pulled out of the ground
    1. making them vulnerable to short squeezes
    2. Making them cover contracts they sold as hedges because they can't make delivery

But we can say this with Confidence

If the CME raises margins tonight or Sunday ( they should) that will tell you what is going on

If Margins are raised and :

  1. Silver Rallies: then it is probably a short squeeze by someone running in someone else.
  2. Silver Sells Off: its an old fashioned "Silver as religion" getting ahead of itself, and/or an investor just paid up

Final Thought: If margins are NOT raised on Silver up 13% in a week but Gold margins were raised post Brexit, what does that say about objective regulation?


UPDATE: On Tap for Next Week

  1. Gettting to the Bottom of the current Silver Rally
  2.  How Elon Musk Conned the Gov't  out of TaxPayer Money- to save Tesla, Solar City and Spacex
  3.  Latest Platinum Partners/NYPD Scandal news- with insight from a former company insider
  4. Our Take on Bill Clinton and his "chat about grandkids on the Tarmac".- The mafia cant compare 
  5. Brexit: the real reason the UK voted to leave was immigration, but not just terrorism fears.-  arbitrage by welfare recipients 

Hopefully, these will be informative. Stay tuned for  insights without  insanity

Enjoy the holiday.

  -Soren K.


Recommended Silver Reading Today

Have a good holiday


- Soren K.


Read more by Soren K.Group