Today James Turk told King World News that a massive short squeeze in the silver market may occur within days!
An Epic Battle Is Looming
James Turk: “Get ready for something spectacular, Eric. An epic battle is brewing in silver, and it is likely to be fully underway before the end of this week…
On one side are the market manipulators that are acting under government and central bank instructions — frantically trying to cap precious metals prices. On the other side are the free market forces who have been accumulating physical silver.
It is worth noting that the silver price has risen a remarkable eight consecutive weeks. That’s a rare event, and this has occurred even though the US dollar has been generally strong during this period.
The line in the sand is $18 per ounce, and the skirmishes have already begun. Silver first touched $18 back on February 10, but since then the market manipulators keep pushing silver back below this price. The important point – which highlights why the shorts are vulnerable in this approaching battle – is that they are fighting with paper, not physical metal. Spot silver is backwardated at 2¢ over March, even though delivery on the March contract is just a few days away.
Over 1 Billion Ounces Short Silver On Comex Alone
Here’s another startling statistic. Silver open interest on the Comex rose 5,000 contracts on Thursday, the latest day available. That pushed total open interest to over 204,000 contracts. Given that each contract represents 5,000 ounces, the total short position is over 1 billion ounces, and that is just the Comex. The really big positions are taken in the over-the-counter market here in London. So the total short position is a multiple of the Comex short position.
Now let’s put that multi-billion ounce short position into perspective. There are only 880 million ounces of silver newly mined in a year. If the short position in an agricultural market were this unbalanced relative to annual production, the CFTC would be going bananas and likely forcing shorts to unwind positions in order to reduce the likelihood of a short squeeze. So where are the regulators in silver? They are turning a blind eye, which is one of the reasons this epic battle is looming……more here