Loading ...… what do we have here?
It’s Friday morning, and the PBOC just let loose $42 billion in stimulus.
And yesterday, in an effort to ‘tamp down prices’, the FH’s in charge had their agents sell into the rally in silver, adding on another 4400 contracts onto Comex Silver Open Interest (OI), bringing the total to 180,000, a level that is well out of the 5-year range.
So, what happens now? Do Western officials organize another ‘tamping down’ Sunday night like they always do? Are we about to see the specs puke up their positions and cause another precipitous drop on Monday morning?
Because if they don’t, well, the hordes of momentum-oriented speculators waiting for the next meme play could wreak havoc next week – sending a signal to the financial world things could be different this time – maybe the FH’s in charge are out of tricks – finally out of the physical metal.
One thing is for sure, if silver runs up through $33 next week and OI begins to decline you will know commercial signal failure is foretelling the increasing likelihood of a Force Majeure in Comex Silver (already underway signaled by the rise of EFP’s), and an official shift in silver (and gold) trading centricity from West to East, from paper trading to physical delivery, and likely bankruptcy of many Western players.
Guess they will just have to print more unsubstantiated fiat currency for the bailouts if that happens.
I wonder when sleepy Western officials will wake up and realize they are in the deferential position to the East now – and more – to the 75% of the world’s population and economy, as represented by BRICS countries.
I guess we will find out next week.
So, grab your popcorn if you are a stacker.
And maybe – just maybe – we might also see the shares wake up soon as well.
Cheers all