Loading ...Broken Silver Market About To Surge Higher
May 3 (King World News) – Andrew Maguire: “As we observed last week in our KWN interview, the synthetic non-delivery gold & silver bubble is bursting. This past week’s Non-Farm Payroll action is just more synthetic noise. All of the FED’s tools are failing to halt a race to buy physical gold as insurance. And there is only one source of no counterparty risk insurance that can hedge against a meltdown and preserve capital, and that is physical gold and silver. This insurance is now so artificially depressed that natural forces alone will cause the price of gold to rise rapidly
Andrew Maguire continues: “The silver action this week far better illustrates just how broken the Comex price setting machine has become. The cash price disconnect with July futures is unprecedented and it not going unnoticed by insiders and Indian physical buyers this week. The July silver futures delivery contract morphed from a technical backwardation into a full-blown backwardation, evidencing spot silver actually trading at a premium to July silver. Meaning, the paper market now represents a broken pricing mechanism for physical silver.
Looking deeper at the wholesale market disconnect with the now expired May contract, (which is in the sole hands of the insiders), this was being picked up by insiders yesterday at a massive 7 cent discount to cash. In fact, this expired contract grew by some 300 lots yesterday at this actionable discount. Meanwhile, insiders are accruing physical silver for their own books while rinsing the remaining specs out of long stops below the fix each day, followed by targeting the prior days low.
Given the COT option expiry sweet-spot is still priced at $15.10, and predatory swap dealers are long against speculators into unprecedented backwardations, with the ratio trade at nosebleed extremes we can be sure that once Non-Farm Payroll dust settles next week and with China back off holiday, silver will regain the $15 level very quickly and gold will regain $1,300 with commercials and bullion banks on the long side of an extremely wrong-footed naked, undeliverable short speculator position. Meaning, they are about to crush the naked shorts.
The Gold & Silver Short Bubble
Given the ‘data dependency’ lever reinstalled by the FED at this week’s FOMC Meeting, we expected the action into Non-Farm Payrolls to be accompanied by additional FED spin to be volatile. But with the paper gold and silver markets in ‘short bubble’ territory into strong central bank and sovereign accumulation, the risk is now upon the massive accrued naked short position that has financed the risk bubble, and this is overdue to unwind.
This is the time to join the commercials and ride the next silver and gold wave higher, but if you do it, do it by taking physical delivery. That way you will not only be fighting back but will also be exacerbating already tight physical gold and silver markets.”
Also of importance…
This Is When Gold Will Go Parabolic
John Awde: “We’re going on 8 years, this September, that gold peaked. So when this thing turns, some of these stocks are so depressed that they are going to be up 50% in a matter of weeks. And I think in many cases it’s going to be more than that. When we finally see money flow into the sector and generalist money flow into the space, because the gold industry is so small, it will create a massive move to the upside.
I don’t like buying stocks that have been going up for ten years. And buying gold stocks represents a huge contrarian play that I think the timing is getting more and more interesting. As soon as the Fed announces the next rate cut and goes dovish, that’s when gold goes parabolic. Two months ago we saw a record US monthly deficit of $234 billion that was announced. That is bigger than the GDP of some countries. So I think we are going to wake up one morning and see the price of gold trading above $1,370.
Also, some of these mines that used to have 10 million ounces are now being depleted. And some of these assets that Pierre Lassonde talked about that used to have 20-30 million ounces are also being rapidly depleted. Meanwhile, Gold Standard Ventures owns 20% of the most well-endowed gold trend in the entire Western hemisphere. We now see our company developing critical mass with the two deposits we have, which are Dark Star and Pinion. And we are on the cusp of making more Dark Star-like discoveries after our successful 2018 drill program, so our stock represents a huge opportunity at these levels.” Gold Standard Ventures,symbol GSV in Canada & the US.
