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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About the Author

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  130 Comments

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silverseekerDan Hutchinson
Jan 29, 2021 - 8:48pm

Thanks Dan, and sorry if my last post was a little agitated

Do you recall Brooksley Born? ... Was she the last honest regulator in US capital markets? We waited years for a do nothing CFTC to investigate rigging; and finally slap the wrist of JP Morgan...

What the Gamestop squeeze did to trap and expose a corrupt system which protects a naked short seller has me scouring the message threads. Its clear the WSB folks are willing to take on the naked short bullion banking Goliath. We may help them via providing cliff notes on just how corrupt the bullion banks are, and how they exploit captured regulators.. But that's a given, they know the whole thing is rigged, and they know why complaining to Congress is a non starter. Unleashing a chaotic gorilla war via draining every physical ounce globally, and then a focused protracted attack on key high visibility market targets in Precious Metals manipulation; like AG; on their turf... that is an 'all the marbles' fight. It may awaken the generalist 401k types whom are scarcely aware of monetary history or that their life savings is in danger as the currency and capital market is destroyed.

And many are asking 'what is the play'?
Not living the rest of our lives on rat wheels in a world run by corrupt bankers for starters.

invest500
Jan 29, 2021 - 8:40pm

robbing AG

Just saw a post on Stocktwits from someone pissed that Robinhood just put restrictions on anyone trying to buy AG.

surfeitndearth
Jan 29, 2021 - 8:37pm

Remember when...

remember when senators got coronavirus briefings before the public and sold off millions of dollars in stocks before the crash last year and faced no consequences and no regulation? then reddit made one stock into a meme and they’re talking about restructuring the whole market

— rudy betrayed (@rudy_betrayed) January 27, 2021
AGXIIKLibero
Jan 29, 2021 - 8:03pm

The POS is out of the White House you say, then the

drooling dementia laden idiot recently living in his outhouse is now stinking up the joint in the White House. With 20000 armed guards guarding him from nothing but his delusions about Insurrection Racism and White Privilege

come on man. Trump's gone. You should be happy

surfeitndearthmurphy
Jan 29, 2021 - 7:48pm

Murph

Dang! Murphy! You’ve jogged my Swiss cheesey memory. Now I remember! In early ’71, as I was about to exit his sumptuous agency, Ferd cautioned, “Be sure to keep that policy number handy… just in case!” I asked him, “But, what if I misplace it?”

Ferd: “Not a problem! Just go downtown to AIG… ask for ‘Hank’; he’ll put you straight, OK? And uhh… better write that down.”

Me: OK, I’ve done that.

Ferd: Good. Now burn it at once.

Me: Right. OK… done that.

Ferd: Excellent. Now, set fire to the ashes.

Me: Yes. OK.

Ferd: Now… memorize the remains.

Me: Right. OK!

Ferd: Splendid! Thanks for choosing Torgerson’s! We’re in business to help you to help us do business! Chowder fer now!

AGXIIKTF
Jan 29, 2021 - 7:44pm

What I love about this is the gummint sends me a stimmy check

I lock, load and fire it back at the vultures and govvies by arming the Wall Street Beats crew with high quality intel and the steady hand of every one here on the boards

What's even better is some of y'all might get some cool tips on trading the insane asylum of Robinhood, subreddit and WSB

mrcic
Jan 29, 2021 - 7:07pm

Dirty Words

Soon to be the dirtiest four letter words that traders and bag-holders everywhere will learn (especially those trading through Robinhood):

Counterparty

Risk

https://www.zerohedge.com/markets/robinhood-caps-maximum-holdings-36-sto...

There is no counterparty risk when you hold your assets directly. Now what would those assets be, hmmmmm?

Alex777TF
Jan 29, 2021 - 7:01pm

TRH

Watched your interview with JC, I hope it motivates TRH sufficiently to have real impact!

I have passed it on all my contacts some of who have just cashed in 300% gains in Bitcoin. I hope that apart from spending these gains on a new car and Home improvements they could allocate some also to the Silver space!

Personally, I am focusing on First Majestic! I have noticed that the volume of call options recently in the $15 to $17 range for Jan 29 expiry was been very high, this was 2 days ago,I assume this is people buying calls?

Wednesday, I messaged them to watch First Majestic when the price was below $14 saying that the price could possibly explode, Personally I was selling Jan 29 $14 puts for which I averaged a price of 50c, Luckily I was right as these just expired worthless. I hope they are sufficiently impressed to get involved!

anarchitectbruinjoe
Jan 29, 2021 - 6:33pm

re: Buying PSLV instead of SLV

PSLV is a closed-end fund, so it can trade at a discount or premium to its underlying assets. For quite a while now, it has traded at a small discount. If people pile into it, its premium will go up. It doesn't have to buy silver the way an ETF like SLV supposedly does. However, PSLV did file a "shelf offering" last year, which allows it to buy more silver and issue more shares if it thinks market conditions are right. That might happen if it starts to trade at a premium.

macksurfeitndearth
Jan 29, 2021 - 6:29pm

just bought from Sprott money

Great service, from the pleasant human that looked after my request with no issues, to the shipping department followthrough.

And they knew about TFMR

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