LOCKED AND LOADED
We have now reached the point in silver (and gold) where it is difficult for me to see how prices don’t quickly explode. From physical supply and demand to paper positioning on the COMEX, we are at the point where only an upward price surge makes any sense. I am well aware of the thoroughly corrupt behavior of the collusive commercials on the COMEX and how their manipulative success over the past 40 years makes it nearly impossible to pinpoint in advance the exact moment such a long-term fraud will come to an end – but recent developments scream out that the manipulation’s end is at hand.
Silver is in a deepening physical shortage brought about by industrial consumption overwhelming current physical supply. Only an industrial or consumable commodity can find itself in a genuine physical shortage. Silver is both an investment asset plus an industrial commodity – the only true commodity with such a dual demand profile. It has been silver’s industrial demand that has created the current physical shortage. When silver’s investment demand does kick in, it is bound to have an outsized impact on price because silver’s industrial demand has depleted much of the metal that investment demand would buy. Plus, it’s a well-known fact that collective investment demand grows on higher, prices. True, investment demand for silver has yet to kick in forcefully, but at some yet to be determined higher price, it appears unavoidable that silver investment demand will become the dominant price force. We are locked and loaded for the upside, with any additional managed-money selling only adding more rocket fuel for the coming price blast higher.
With even greater price carnage in the shares of the silver miners, current lower silver prices are in the beyond-overkill category. With every sign of a deepening physical shortage more obvious daily, the continued suppressed silver prices are now threatening to destroy much needed future supplies from mining. With future silver mining being severely undermined it is inconceivable to me that the primary federal commodities regular would sit by and allow the “seed corn” (future silver mine production) to be destroyed. Yet, here we are. It has become so obvious that silver prices are artificially depressed by the COMEX manipulation that, far from any expected reaction from the federal agency primarily tasked with preventing such an overt price manipulation, we instead find the agency fumbling and stumbling in attempting to answer a simple question about double-counting silver inventory.
What matters most is the nature of the coming silver price explosion, which promises to be monumental in terms of both price force as well as how quickly it unfolds. Try as I might, I just can’t envision the termination of the 40-year-old COMEX silver price manipulation occurring under any ordinary two steps up, one step back price scenario. Forty years of artificial price suppression simply cannot be resolved with what would be considered “normal” price action. The end of such a long-term price manipulation must be commensurate with the longevity and severity of the body and nature of the manipulation.
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