Recently, silver investors have received a wicked object lesson in how domination works when price gets too far out in front of where powerful entities want it.
Looking at the current technicals, paper silver wants to break to the upside; traders are having difficulty further milking the short side while fundamentals are pressuring up.
It is a wedge of fear. Shorting goes against the fundamentals and proven demand, but going long goes against the expressed wishes and authority of the people who make the rules. Thus silver’s current sideways up-trending fear trade. It’s like watching a toddler who is ever anxious of what he will be allowed to ‘get away with’ by a stern parent. As the uptrend gains steam, the toddler will become a rambunctious teen who seeks more autonomy and self assertion. And so if you’re in the paper game, at that juncture, be careful because everyone will be looking for the signs of an unhappy JPM/Comex – in order to be the first out before the next hammer falls.
And that is just how they want it.
A few things should be clear by now. First, until this whole thing blows up (which it will) JPM has unlimited liquidity thanks to the Fed window. That liquidity will be used as a weapon against silver – more so than any other asset because silver represents monetary liberation (even more than gold because the huddled masses own zero gold, while the wealthy and central banks own a lot of gold). So through whatever extreme ‘winter of discontent’ transpires, gold can be controlled by the matrix.
Second, the paper silver trade is beyond what can be unwound with the current system. The trade is so vast that it will never be actually backed by physical and it is unlikely that the commercial shorts can ever get out lest the spot go ballistic causing a run on the system and a default.
Third, China does not take its marching orders from Jamie Dimon. The East is now a driving force in commodities that has long felt the economic control of the U.S. Petro-Dollar as the world reserve currency. What is more, they’re genuinely culturally different (and not better, just ask the Tibetans). And finally, they’re smart. They have given the U.S. all the rope it wanted. And now the party is over (though most are still drunk & mesmerized by the Dow). The Chinese are buying real assets. They are uninterested in buying U.S. Treasuries and they have stopped selling silver. On the contrary, with a long tradition of silver money, China is aggregating its physical silver stack.
So there it is. JP Morgan is a crazy man at the wheel of a party bus in which China has glued the gas pedal to the floor. This thing is going to end badly. In summary, systemic collapse is inevitable (also in many other ways outside the scope of this article). And this translates into a parabolic silver move. So try not to sweat the current wedge of fear too much. On the contrary, take advantage of it as much as possible. If you have a way to game the paper system, go for it (at your own risk). If you can keep stacking, these are prices that were only recently hoped would return. Now is the time to make your future gains.