In Jim Cook's Archive


We’ve been waiting a long time for silver to break through the $20 level. Just two weeks ago, I said to someone that it sure would be great to see it reach $20. We are there and looking for more. Something big has changed for silver and it’s likely to go much higher. The circumstance that has set silver free is the absence of any further short selling by JPMorgan. In every past decline over the last eight years, the weekly Commitment of Traders Report revealed a big, profitable short position held by JPM. Now that’s gone and the game has changed.

There are plenty of reasons that investors are buying record amounts of silver. Just the fact that investment buying has taken off is bullish. Then we have the impact of the COVID virus on the economy. High unemployment and massive money creation to combat it causes people to worry about the future of the dollar and the economy. Consequently, some folks start to buy silver and gold as a hedge. Since there isn’t a lot of newly mined silver available because the industrial users use almost 90% of it, the increased demand from investors can cause supply problems for everybody. We are close to a silver shortage and the necessity of the price to rise to levels that discourage demand for silver. That’s a price that makes your palms sweat when you think about it.

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