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The Key Factor In Silver Is A "Concentrated Short Position On Comex"

quoth the raven's Photo
by quoth the raven
Wednesday, Jan 12, 2022 - 15:02

Submitted by QTR's Fringe Finance

This is an interview with Andy Schectman, President & Owner of Miles Franklin Precious Metals, a company that has done more than $5 billion in sales.

Andy is a world-renowned expert in the field of precious metals and took the time to answer some pressing questions I had about the precious metals market, the Fed, and the future of money worldwide.

I sought out Andy’s opinion because I believe him to be a thought-leader in the space of metals and monetary policy. In my last interview with Andy, he explained his real-life case for what could drive silver prices over $270 and why he thought “physical demand could completely overwhelm supply”.

Q: Hi Andy, thanks for taking the time for my Fringe Forum readers yet again. Let’s talk about what’s new: why do you think the silver/gold ratio has gone back above 80?

A: The key factor in silver is the concentrated short position on Comex. Eight banks essentially hold the entire net short position in Comex silver. This represents more in terms of real-world production than the concentrated short positions in any other commodity traded on the exchange.

JP Morgan paid a $920 million dollar fine for manipulating the metals market last year and now Bank of America is holding a massive, short position in silver.

Why are a handful of the biggest banks in the world so aggressively holding down the price of silver? Does it matter that JP Morgan has amassed over one billion ounces of physical silver while holding down the paper price? Do you think they know where the price is ultimately going?

Price of Gold

The massive industrial expansion in green and digital applications and the global explosion in monetary demand is now putting pressure on these manipulative banks. Increasing investment demand has a magnified impact since the large industrial players must purchase silver for their products no matter what. The silver market moves at the margin, so the added demand by investors, at the margin, is key.  

So, it stands to reason that the banks are manipulating the price because they want to make silver look like a poor an investment, in my opinion, this is the only reason for silver’s obvious underperformance and an 80 to 1 silver to gold ratio.

Is this a harbinger for a big move in silver? It doesn't feel like the market is noticing. Could this perhaps be the "new normal" for silver?

It’s well documented that gold typically leads silver in a bull market with silver eventually catching up and even surpassing golds performance. Logically, this means the gold-silver ratio must move higher before silver makes its move. 

Further, all manipulations end, especially those...(READ THIS FULL INTERVIEW HERE). 

 

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