Authored by John Rubino via DollarCollapse.com,
Silver’s popping this week…
Which is what people following the futures market action have been expecting for several months now. Speculators – usually wrong at big turning points and almost always at least slightly net long silver – have suddenly gone net short.
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This is almost unprecedented, and implies that a short squeeze – in which speculators are forced to cover their short bets by buying silver futures, thus forcing the price sharply higher – is a real possibility.
What does this mean going forward? Based on the extremes in the paper market the incipient short squeeze has a little longer to run. The next COT report comes out on Friday and will show where the speculators were on Tuesday. We can infer from today’s action that since Tuesday they will have closed a lot of shorts, which means we’ll have to wait for the following Friday’s report to know how many.
Longer term, this is the kind of attention-getting action that puts an asset back on the radar screens of non-true-believers. As hard as it is for us gold-bugs to imagine, the vast majority of people aren’t watching precious metals and have no idea why silver matters.
They do, however, notice when the price of something jumps.
So if this short squeeze has legs and generates some headlines, it could pull in enough momentum chasing money to create a positive feedback loop in which rising prices beget more rising prices.
People will then try to figure out why this is happening, which will expose silver’s extremely positive fundamentals – tiny available supply, falling mine production, rising demand from technology and other industrial uses, and a tendency to soar in times of monetary stress – thus expanding the pool of fundamental investors.
Let gold finally break through that damn $1,360 resistance and it’s off to the races. (Here’s a free gold investing guide.)
But of course – as fans of precious metals have to readily admit – we’ve been waiting for (and sometimes predicting) stuff like this for years. So this latest flash of light might be yet another freight train heading our way. But one of these days what should happen will happen, and $100 silver will make up for a lot of angst.
I would love to be able to seamlessly move $$ back and fourth between PMs and cryptos. Bitcoin, if you are paying attention, is selling every time it hits $8,000 and buying every time it hits $6,000.
TPTB will pound silver and gold for as long as possible but eventually the metals will win. I’d venture we have another year before the moonshot. Time to load up. There has never been a better set up in history. Demand potential is now global-it wasn’t before. The Energy Return on Investment is cratering-too expensive to mine with rapidly falling ore grades. Debt has gone parabolic and can’t be repaid. Everything paper is an illusion. When reality returns having the store of energy precious metals represents will have the globe chasing after a tiny tiny amount of remaining metal. Think Tulip mania 2.0
Be very wary of cryptos. They are backed by nothing other than belief in some intrinsic value which is not there.
Looks like a duck, quacks like a duck….. Ahoy silver!! Real money.
Ah, the silver lining! Silver is poised to go through the roof! Hold on to your hats, We’re gonna be rich!
From my years of watching the silver market, having a small amount put aside for a rainy day, I can say with the confidence of a professional trader, that when silver goes through the roof, the economy will be going through the floor in a monumental collapse.
Yes, silver will be going at $100, $200 and even $300 dollar levels; the same amount of dollars that will buy you a loaf of bread. But still, it will be easier than bringing a wheel barrow full of $100 dollar bills to buy a big mac.
“Silver price” means nothing to me, other than a measurement of how many ‘fiats’ I could exchange my REAL silver for, if I was so inclined. I am not.