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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murphysurfeitndearth
Jan 29, 2021 - 6:23pm

Surf

Always appreciate your witty repartee.

Good luck finding your policy. When Ferd designed them in 1969 the hot tv show was Mission Impossible. You remember the part when the message self destructed? He used the same paper!

On another topic. A snippet from Luke G new FFTT on globalization.

The punchline? Last time globalization went in reverse, it was driven by a war that broke out as a decades-long power competition between a rising power (Germany) and the long-time incumbent power (U.K.) came to blows over the assassination of Archduke Franz Ferdinand in Sarajevo.

From a financial asset standpoint, the last time globalization went in reverse, financial assets and liabilities fell for the next 30 years. Global sovereign debt of the world’s six biggest industrial powers (US, UK, Germany, France, Russia, and Japan) collapsed by 60-100% v. the price of gold from 1920-1931.

Maybe history is rhyming, maybe it is not. One thing strikes us as certain: The charts above and the prior Tree Ring points make it seem increasingly irresponsible not to have an allocation to physical gold and silver and BTC, because if the worst is avoided, currencies are likely to be weakened. If the worst is not avoided, as anonymous monetary theorist “Another” once said, “all paper will burn” as warring sovereigns do NOT honor their sovereign obligations to their adversaries and global trade would likely come to a standstill and would almost certainly NOT be settled in sovereign paper.

Dan Hutchinsonsilverseeker
Jan 29, 2021 - 6:21pm

Bullion Banks

The Hedge fund that shorted GME had played with naked shorting (they shorted more shares than the company had in its pool) which is supposed to be illegal. With many contacting their congressmen in support of the retail crowd at Reddit, would now be a good time to reveal the naked shorting in the Comex?

How is it possible the bullion banks can slam silver down by selling 1 years worth of production in a matter minutes at the worst possible time of day? Unscrupulous activity hates transparency. Now would be great time to pile on the bullion banks by complaining to Congress the activity that has been ongoing for years. This would create enoumous pressure on the banks and would very revealing to the non precious metal crowd.

silverseekerbpete
Jan 29, 2021 - 6:13pm

The bullion banks are their own worst

enemy if you consider how conceited and overconfident they have become via controlling this little rigged game of PMs and commodities futures. As Craig has detailed; they know how to fuck over novice traders who enter on margin and leverage via a myriad of "regulation free"cheating.

Silver needs a serious relentless paired trade bid into the high $30s for openers; concurrent with AG getting 'Gamestopped' to $100 or $400 /share; with autistic buying until the short is burned out and a Silver Miner 'David vs Goliath' segment is airing Keith Neumeyer on CNBC.

  1. This places a spotlight on valuation propositions everywhere else you look in this sector
  2. Emboldens some momo cash to finally start trickling into this tiny sector market cap universe; in a rediscovery phase
  3. Sets the structured shorts on their heels and less likely to attempt their smash runs while the fresh momo cash is flooding in.

All along the way ; profit taking must include price agnostic Silver purchases with the end game being IT IS GOING TO BE MONEY AGAIN....

If we want to complain about how unfair the world is; lets keep holding paper currency and whining how the bankers own a rigged casino; else TAKE and MAKE metals your reserve asset/savings and starve your local banker until he BEGS to deposit your Silver and pay you INTEREST on the deposit... remember that???? Lol. Sadly, something the entire millenial generation has never experienced.

Do nothing and nothing will happen. Guaranteed.

surfeitndearthmurphy
Jan 29, 2021 - 6:12pm

@murph

Ouch! Makes me want to run out and check on my coverage!

Now, if only I could find those crumpled, tear-stained directions to Torgerson's Insurance Services.

Crawtestdadbpete
Jan 29, 2021 - 6:08pm

100 million oz

Is very meme-able . How good are the people waiting and hoping for a decade ... right now?

My Shot
RickshawETF
Jan 29, 2021 - 5:36pm

I just ignored my own advice!!!

As I am prone to do, when I bought LEAPs in AG (Jan 21 2022 $25 Calls), I concurrently put in a sell order for 40% of my contracts, at a strike price 2.5X my cost. That insured me that if the sell was triggered, I would recover 100% of my capital, and still own 60% of my contracts.

Today, the value of my LEAPs reached 2X my cost, and it appears that next week there is the possibility of my sell order being filled. Given the news, enthusiasm, rumors, and momentum (not necessarily in that order!), I canceled my sell orders, and decided to just let this sucker ride! After all, YOLO !!!

Edit: Somebody stop me! I just re-entered my sell order, but raised my limit order to 10X my original sell price (from $5 to $50). If it's a quick elevator ride, I may just catch that brass ring . . .

tommy
Jan 29, 2021 - 5:12pm

post on reddit, doing my part:)

Guys, first post ever on Reddit. This really feels like 2008 again. In 2011 I became a millionaire by buying puts in 2007 and going long gold and silver (stocks). The unbelievable fraud I witnessed as full time trader made me an activist investor committed to hold the line against the powers that be, concentrated in the big banks, central banks, hedgefunds, government etc. Silver bullits are used to kill vampires and silver shorting by the enemy was seen as their Achilles heel. Unfortunately we weren’t able to hold the line, got overrun, and have been relegated to the sidelines, many of us turning into grumpy old men? hopefully you all be able to identify the real enemies of the people and revive the fight. This is just the first scrimish and you know you’re over the target because you’re getting
Flack. Hold the line and start looking into the importance of gold and silver. Then real hell will break loose? tip: no SLV, also buy some physical, good luck to you all, I love you all????? [The old guard] (inserted movie of craig with jean:)

murphysurfeitndearth
Jan 29, 2021 - 4:58pm

Gives

me a headache but I like the sentiment.

Rage Against The Machine - Bulls On Parade
bpetesilverseeker
Jan 29, 2021 - 4:33pm

This weekend

We should put together an attention grabbing message regarding AG and buying physical that we can ALL post in every type of forum we can to generate a ground swell that will overwhelm the shorts next week....

surfeitndearthvonburpenstein
Jan 29, 2021 - 4:28pm

@burp

Miners? (in addition to First Majestic)

  • Fortuna
  • MAG Silver
  • Impact Silver

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