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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Boswell
Jan 30, 2021 - 2:37pm

/r/Silverbugs

Bunches of WSBers joining up there too. Big uptick recently of newbies asking questions. ;-) (and getting good answers ;-)

Crawtestdad
Jan 30, 2021 - 1:46pm

ECB: BTC worth zero

Be careful a guy could get smoked! Don't hold on the fantasy that you are some international man of mystery who is going to hop the world so you need only zero weight protection. Even if you are -- you need some diversification, or you might find you're no good to anyone some day. Not sure you can rely on news flow to time this right...

https://www.livemint.com/market/cryptocurrency/bitcoin-investors-may-los...

https://www.theguardian.com/business/2021/jan/11/bitcoin-be-prepared-to-...

uni59
Jan 30, 2021 - 12:09pm

I want

to give a HIGH FIVE to Turd and AGXIIK for paying for 10 WSB ers to join TFMR ! I think we can all smell blood in the water and hope the pricks dont find a way to choke us back this time ... is this time different? i hope so and to the WSB group that comes on board we need to let them know we ARE on their side and we have been fighting this fight for yrs. P.S. AND OH HOW I LOVE THE SMELL OF BURNING SHORTS!!!!

SteveWjoehappen
Jan 30, 2021 - 12:01pm

Silver

Joe, in response to your comment we can all use AG as the stock symbol for First Majestic and Ag as the chemical symbol for physical silver.

Easy to remember and does not rely on context.

Stevediva
Jan 30, 2021 - 11:29am

to all the redditt and WSB folks.

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

If if everyone just buys a little silver silver shorts will have a religious experience.

Dear Reddit folks most people who invest in the metals market realize the manipulation and we've known about it for years so here's your chance.

KGCrawtestdad
Jan 30, 2021 - 10:47am

Changing Times, Mr. Cohen

You've been caught short on GME, and the hordes of reddit degenerates (6.9M, as of this posting), don't have the same restrictions as federal prosecutors. They are free to trade at will, even if your buddies at Citadel and Robinhood are tripping it up as much as possible.

Are you short on silver, Steve?

Key Economic Events Week of 5/10

5/11 10:00 ET JOLTS job openings
5/11 12:00 ET Goon Brainard
5/12 8:30 ET Consumer Price Index
5/12 9:00 ET Goon Chlamydia
5/12 2:00 ET Federal Budget
5/13 8:30 ET Producer Price Index
5/14 8:30 ET Retail Sales
5/14 8:30 ET Import Price Index
5/14 9:15 ET Cap Ute & Ind Prod
5/14 10:00 ET Consumer Sentiment

Ferd Torgerson
Jan 30, 2021 - 10:39am

Not funny, Murph and Surf

Here I am, hanging by my fingernails trying to keep my boat insurance business afloat, and you two are making sport.

In the almost ten years since I launched Torgerson’s Maritime Underwriters, it’s been one crisis after another. Probably my biggest regret has been putting my brother-in-law Murphy, yes – that Murphy, in charge of claims settlements. Sure, underwriters have to deal with insurance fraud, but early on I was stung by a claim Murphy paid for a substantial amount to a character named Greg Hamkey. When I went to the GPS coordinates where the loss supposedly occurred to salvage the metals, it led to a spot on the 50-yard line on a college football field in Lincoln, Nebraska. When I called the number provided on the policy application, a Mrs. Ferguson who answered the phone said no one by the name of Greg Hamkey had ever lived there.

Well, one thing led to another. The loss on that bogus claim led to a liquidity crisis which meant we were unable to settle legitimate claims. Prosecuted by the DOJ and several states’ attorneys-general for insurance fraud, I was obliged to spend some time at Club Fed.

I’m just now starting to see a way back. All the young guys cleaning up on Bitcoin and Robin Hood are going to be suddenly rich. As they pour onto TFMR, they’ll learn the wisdom of buying and holding AU and AG. Natcherly, to impress the ladies, one thing they’ll want is a large luxury boat. Makes sense that many will keep their stashes on their boats. Ding, ding, ding! What an opportunity to sign up new clients for boat insurance!

I’ll obviously need to increase advertising, but Murphy said he’ll advance the needed funds. The vig at 25% is a little high, but I figure to make that up on volume.

Ferd

silverseekerTF
Jan 30, 2021 - 10:38am

Fantastic interview

Craig, you nailed it!!! Couldn't ask for a better case laid out clearly for why Silver, why now...

tonym9
Jan 30, 2021 - 10:03am

Just relistened to the

Just relistened to the podcast TF did with First Majestic CEO Kieth Nuemeyer. Good discussion of the short situation back then...podcast was the end of 2019.

In 2016 the short precentage was 15%+/30 million short with 200 million company shares outstanding. Now its 24%+/45 million shares short!!!

Kieth discusses the last short squeeze in 2016. Then silver went up $7 to 13.50 to 20...stock went up 500% and Kieth says most of that was short covering.

Imagine the bonfire now. Burn the Bankster Bastards down.

Crawtestdad
Jan 30, 2021 - 9:14am

Could you please spare some tears for Steve Cohen

https://www.yahoo.com/news/billionaire-mlb-owner-steven-cohen-210726997....

He's a swell guy, struggling to make an honest buck.

https://www.newyorker.com/magazine/2017/01/16/when-the-feds-went-after-t...

"In his office, Bharara and his colleagues couldn’t believe what they were reading. S.A.C. had just signed a guilty plea admitting that it had, in fact, been built on a culture of securities fraud. "

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Key Economic Events Week of 5/10

5/11 10:00 ET JOLTS job openings
5/11 12:00 ET Goon Brainard
5/12 8:30 ET Consumer Price Index
5/12 9:00 ET Goon Chlamydia
5/12 2:00 ET Federal Budget
5/13 8:30 ET Producer Price Index
5/14 8:30 ET Retail Sales
5/14 8:30 ET Import Price Index
5/14 9:15 ET Cap Ute & Ind Prod
5/14 10:00 ET Consumer Sentiment

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