I believe this huge $4 correction in just a few hours was likely initiated by Big Traders (Bullion Banks) to liquidate a portion of their short positions as the silver price was getting out of hand. The evidence to prove this was shown in the new Silver COT Report, which reported a substantial decrease in the Commercial Net Short positions.
Silver has made impressive gains over the past week which resulted from its breaking out at last from the giant Double Bottom base pattern that started to form as far back as 2013, so it’s been a long wait for silver investors for this to happen. Over the past week it has done exactly as predicted in the “breakout Souvenir article” posted on the site on the 22nd, running quickly at the strong resistance at the underside of the 2010 – 2013 top area, as we can see on its latest 13-year chart…
Silver had a historic late-night Sunday rally, and now some of the banks and funds that are short are really racking up some big losses.
Fortunately, I was invited onto Trevor Hall’s Mining Stock Daily podcast to talk about what’s going on, how quickly the silver price might rise, the risks, and a whole lot more.
To refresh: Basis = Future(bid) - Spot(ask)
For the first two and half hours, the spot price is not moving. So, the only way the basis can drop is if the price of the September silver future is dropping. In other words, selling of futures. But while that was going on, there was enough buying of spot to keep it steady.
Then, perhaps some market participants became aware of the buying of spot. Or perhaps some other buyers got excited. Somebody was buying in size, because between around…
Just when you thought it might be impossible to see another new record in terms of silver demand, wait until you see what this week’s silver ETF trust data showed.
Where a record amount of silver was allegedly deposited, as premiums in the wholesale market rose, while the price spiked several times throughout the week.
If there was only one chart I could use to make a case for the PM complex bull market it would have to be this quarterly line chart for gold. First note the beautiful and symmetrical H&S consolidation pattern we followed in real time and the reverse symmetry over the same area on the way down as shown by the blue arrows. On a quarterly time basis you can see gold is trading at new all time highs. The last thing to observe is the 2000 to 2011 bull market which made higher highs and higher lows…
Gold prices surged over $1,900 an ounce on Friday morning -- up over 5% for the week.
Gold could hit a new record high as early as today. However, it wouldn’t necessarily be a bad thing if the market first pulled back a bit and established a base for its launch to $2,000 and above.
You’ve heard for years about how the silver market has been manipulated, and that some of the banks have a massive short position.
Well, according to the CFTC’s latest data, that is still the case, which means that a couple of these banks got their clock cleaned pretty good over the last few days.