Comex Silver and Reddit

Please read this free public post today.

130
Fri, Jan 29, 2021 - 11:04am

The Reddit-driven fun continues today with no end in sight as of this moment. Can our new friends continue this momentum into next week and, if they do, what might be some targets to watch?

More on that in a minute. First, let's just take stock of where we are as I type. Comex gold is up 1.3% but, more importantly, Comex silver is up 5.4% and pushing toward $28. The shares are rolling again, too, with some of the most heavily-shorted like First Majestic jumping higher again.

And this is awesome! Again, though I'm not sure much can be done to harm The Banks through buying at the Comex level, there certainly exists the possibility that enough of a move in price could spark some additional momentum...which would lead to some additional pain for The Banks...which could lead to some additional momentum...which might lead to some Bank short covering...which could lead to some additional momentum....and if this continues long enough, we might do some real damage.

This is far more possible/likely in Comex silver as The Banks have the additional backing of the BIS et al in managing their gold positions. Silver? Not so much. So this sets us up for a very interesting day today, a possibly significant weekly close, and then who knows what might happen next week. This thing could brew and simmer and spread all weekend. However, before we get there, we're going to need a strong close TODAY. Can we get there?

Already, price was smashed lower after the NYSE open and before the London PM Fix. It has since recovered a little but be aware that The Forces of Darkness are OBVIOUSLY watching closely and will attempt to manage BOTH prices lower, if possible. Having The Reddit Horde jump prices higher at the open is great, but if they can't keep it going all day, then The Banks are just going to lean on price and rig it back lower...just as we saw in Comex gold yesterday.

OK, so back to Comex Digital Silver. As discussed yesterday, I don't think it's likely that a grass roots level buying of Comex contracts is going to be successful in squeezing The Banks. However, if TRH (my new acronym for The Reddit Horde) is PERSISTENT and PATIENT enough, they may be able to set off a virtuous cycle of higher momentum that eventually gets price feeding on itself.

What do I mean? Well, the first step is to close above $27.30 on a weekly basis. This seems possible today. However, if price can close above $28.04, then we'll have the highest weekly close IN EIGHT YEARS. This would be a significant event to the crowd of Large Specs and hedge funds that typically trade Comex silver futures. But let's not get ahead of ourselves. The first goal for today is that $27.30 level. Can we paint the weekly close above that level?

And again, here's a refresher that was featured prominently in this year's macrocast. As you can see below, once the price of Comex silver begins with a "3" again, it likely moves up fairly quickly. When you factor in some possible Bank short-squeezing, you can see where this could get pretty interesting in the weeks ahead if TRH can remain interested for a while.

Where TRH can be even more effective is in getting revenge upon the predatory short sellers that have plagued our sector for years. We've long supported the Save Canadian Mining initiative but since the Canadian government couldn't care less about the health of their most important industry, maybe we can just crush the shorts the old fashioned way?

It's going to take some work because it's a long list of companies that have been hampered by these degenerates. However, we'll take it one day at a time and try to keep the pressure on. For example, First Majestic was again reversed today at $19.00, which is the old 2016 high. If enough pressure can be applied consistently over the next week, price could easily break into the 20s and soar past the old 2011 all-time highs. Above there, the pressure on the sniveling little cokehounds will increase exponentially.

And just one more note about our Bullion Bank foes and their Comex. As you know, the Feb21 Comex gold contract went off the board and into "delivery" last night. As has been the case since last April, the total left open and standing is about 3-5X the long-term historical average as 33,327 contracts.

"Deliveries" began last evening and, already, nearly half the total has been "delivered". But be sure to note which firm was the big issuer (deliverer)...the House or proprietary account of Goldman. And the be sure to note the total....8,900 contracts! Well this is in CLEAR VIOLATION of the expanded position limit of 6,000 contracts! Once again, The Banks flaunt the rules because they can. The rules apply to you and I but not them. It's a private club and we're not in it.

Hey, @CFTC!
Save me the "bona fide hedging exemption" bullshit.
Here's the house (proprietary) account of Goldman Sachs issuing/delivering 8900 Feb21 gold contracts last night.
You caved and doubled the position limit to 6000. The Banks couldn't care less.
Why even have limits? pic.twitter.com/mcWF2W8xru

— TF Metals Report (@TFMetals) January 29, 2021

OK, I've got to stop here in order to record the Sprott Money weekly wrap-up. The guest this week will be silver expert David Morgan. Good timing, huh? As usual, I'll post the recorded audio into the comments section. As I close, I see that the pressure continues but price is, so far, hanging in there. Again, let's take it one day at a time and focus our goal today on $27.30. Closing above there will set the stage for an interesting early week next.

Have a great day.

TF

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  130 Comments

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eyeswideopensifter7
Feb 1, 2021 - 9:40pm

Remember when we were Newbies?

Not all WSB but they deserve a hat tip for sparking interest in metal. I don't think there was this much buzz back in the day. The metals space is growing fast with the entrance of a new group of investors.

This reminds me of the watchtower days. We were all hopped up. Same now with a new generation of newbies. They are learning about the real reasons to buy and hold metal. I've done my part by helping a couple folks get educated and they've begun their stacking journey.

undeRGRoundCrawtestdad
Jan 31, 2021 - 11:38pm

@crawtestdad

It seems like you didn't read the article you posted from livemint.com.
They seemed to be saying in general that people can lose money, but did not go into any specifics. It's just the low-level FUD that crypto investors see every day. But me, unlike your "international man of mystery" has the bases covered.

The successful crypto investors do not get their news flows from the LSM (lame stream media) anyway. Both sources are just FUD Factories. Spreading FEAR, UNCERTAINTY, and DISINFORMATION. The Guardian article does make a good point, there are still unregulated shitbags out there offering outlandish gains, but get this, MOST of them are "licensed" in the UK and it's total BS. The UK "regulators" know this yet still sell these licenses to scammers every day. How do I know this? I was scammed. The idiot UK regulators don't care, they are just selling Licenses to STEAL. For a fee, of course! US Regulation of Crypto is the best in the world, it seems. Thanks to Trump. Hoping Biden does not "F" it all up!

Oscar
Jan 31, 2021 - 9:59am

SD BULLION

Message on their website says due to unprecedented demand for silver we will be unable to take orders until the market opens Sunday evening. At least they could be HONEST and say..

"Due to our expectation of a HUGE GAP UP in silver when the market opens Sunday evening, we are waiting until then to take your orders so that we may MAXIMIZE our profit."

Crawtestdad
Jan 31, 2021 - 9:54am

How will Biden policies affect Money Velocity?

https://www.stlouisfed.org/on-the-economy/2014/september/what-does-money...

Money supply is already high and yet we have low inflation. This situation seems to be due to low money velocity. It seems clear that direct payments will increase money velocity. What about if stock buybacks become less effective, where will corporate cash go? What happens to business activity if the pandemic is brought to heel. What about consumer demand, will there be a rebound YOLO effect? What about "buy american" prescriptions? Aside from causing too-much-money-chasing-too-few-goods, will this trigger local money velocity increases? Will policies designed to decrease racial inequities be initially successful in savings and investment or just cause funds to flow into areas that will at least initially result in more spending than saving? Will labor-intensive infrastructure projects mean more money multipliers as the wages of workers are quickly spent, then respent by local businesses coming back to life, respent with suppliers, etc.

Crawtestdad
Jan 31, 2021 - 9:37am

Futures trading approval

Schwab approved it in less than 24 hours. Was not expecting to hear anything until mid-week. YMMV. Not sure I will use this.

hans007
Jan 31, 2021 - 3:23am

https://www.reddit.com/r

https://www.reddit.com/r/Wallstreetsilver/comments/l8fpal/the_biggest_sh...

original silver thread was removed by the WSB mods, but someone copied it to this other sub. Upvote it if you like it.

Crawtestdad
Jan 30, 2021 - 5:39pm
KGCrawtestdad
Jan 30, 2021 - 5:35pm

Modern Art

Our "elite" have such revolting tastes in art. Always some nasty thing with these guys. Do they think these ugly works prove how special they are? No beauty. No wonder, our cultural rot.

Visit the FAQ page to learn how to track your last read comment, add images, embed videos, tweets, and animated gifs, and more.

CrawtestdadKG
Jan 30, 2021 - 4:37pm
wo
Jan 30, 2021 - 4:20pm

easy assay

With the metals, it is time consuming and costly to take delivery and assay it.

With stocks the transfer happens in two days. Put those shares in your non-margin account and it can't be loaned for shorting. Consider this a stock "assay". Let's call this three days, and cheap to do.

From an earlier posting:

"If you want to stick it to hedge funds and Banks just buy physical silver."

For Bitcoin, it takes a few dollars and about ten minutes to move it off an exchange into a private wallet. That does the "assay". This property of Bitcoin is superior to other stores of value.

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