Some writers in the alternative world have been predicting a big price drop for some time due to the big commercial short position (ie bullion banks / manipulating cartel). I haven't read the articles, but other writers have mentioned them. It seems like silver is climbing a wall of worry. I wonder who the buyer could be going against the banks (shorts) who have a direct line to the Fed/US treasury. Seems like to me the only 'person' rich enough could be another sovereign government. Though, could be the new Chinese physical precious metals exchange and fix has caused this in terms of physical demand, which has been very high for some time, is finally pricing the market and is acting as the sovereign support. Wouldn't be surprised if silver and gold get slammed here in short order, but the commercial banks may get destroyed if the trade continues the way it has.
If I had to guess based on past history I'd say a big drop is coming, yet there is so much in the air right now:
- Obama and Biden meeting with the Fed during the Feds expedited (read emergency) meetings recently - supposedly the first time the President and VP have done this at the same time
- Banks in Europe such as Italian banks and deutsche bank hanging by a thread and the first bank bail-in in Austria since Cyprus and the new rules put in place in Europe
- war or threats of war all over
- politically any number of countries and alliances, such as the EU over the refugee situation and the US and Saudi Arabia 9/11 hangout/threat, are going crazy
- geopolitically with the West pretty much at war with Russia and to some extent China and this extending into financial war moves (could be China and Russia are beginning to checkmate the West via gold)
- those terrible trade deals the US is pushing to institute corporate rule
- weather increasing in craziness and volcanoes and earthquakes increasing as well
Seems like change is in the air whether for good or bad and there is a chance the commercials and by connection the US gov't and its financial entities are overrun by the tide of change.
