Silver Specs Have Hardly Ever Been This Short: Is The Squeeze Finally Here?

Silver bears have had a great autumn. This week they finally got a scare.

When we last checked in on Goldman's Robert Quinn's running silver diary, the metal was "Still Stuck" at $57.48, specs had dumped $2.2 billion in three weeks, and we argued that the positioning setup "tends to end with a violent squeeze." Well, the squeeze took its sweet time: silver kept puking all the way into the midterms, briefly testing $50 in what our friends at The Market Ear dubbed a "Silver Bloodbath: From FOMO To Full-Blown Panic" (Oct 30). That is a cool 55%+ below the $121.67 record set on January 29.