COT Silver Report - October 21, 2016
This is small bear, and not much evidence of better conditions. However, with predominantly bearish commentators, excepting of course the gold bugs who are always bullish, it ranks as a credible performance. Furthermore, open interest on Comex has fallen substantially from the peak on July 11, leaving the market moderately oversold. This commentator is also convinced that some portfolio exposure, as opposed to purely speculative trading, is being maintained in rolling futures positions, so we have probably seen most of the contraction of open interest.
Going way back to November 1998 after the Warren Buffett spike, the OHLC bar range of silver dropped below this moving average. With that silver re-entered its long term bear market and what one would have been looking for with this indicator was for the silver’s OHLC range to complete one full month above and clear of the 20 month moving average.
I have been recording Audioblogs weekly for more than three years, 166 to be exact. However, for the first time in memory, I’m taking the week off – as frankly, last night’s debate shook me so thoroughly, I need to control the emotional outpouring such free-streaming commentaries unleash. As frankly, I’ve been working harder than ever to spread the words of truth, protection, and sensibility, and need to maintain my strength ahead of what I fear will be the most difficult times America, and the world, have faced in generations.
I have to admit, my heart just isn’t “into it” this morning – as frankly, the past 24 hours, Precious Metals mini-surge notwithstanding, has had the feel of a giant financial market and media “holding pattern” ahead of tonight, when easily the most important debate in modern American history occurs. As, irrespective of how egregiously the election has been rigged thus far, no level of fraud, deception, or spin will be able to lift Hillary Clinton to the “high ground” if Donald Trump, who has sounded a lot more Presidential in the campaign homestretch, delivers the political beating I anticipate.
I cannot think of a time, in my entire life, when I was more worried. Not about my situation personally, as I believe I have prepared for what’s coming, as well as humanly possible. However, that doesn’t mean I won’t face hard times as well – potentially, far worse than said “preparations” accounted for. Let alone, my soon-to-be five year old daughter, as well as the children of everyone reading this blog, and billions of others the world round.
U.S. Mint Silver Eagle sales surged in the first half of October due to increased turmoil in the political system and economic markets. Silver Eagle sales were strong in the first five months of the year, but weakened in the summer due to several factors. One factor was the fall-off in demand by the Authorized Dealers (wholesalers) who had continued to purchase record Silver Eagles in the first part of 2016, even though retail investor demand had softened.. The other factor was a weakening of investor demand as the contagion from the U.K exit of the European Union subsided in the summer.
It is an election year. We should anticipate 8 years of upcoming trauma, following nearly 8 years of “hope and change,” after 8 years of “no nation building,” after 8 years of “I did not have sexual relations with that woman.” Examine the official US national debt in 8 fiscal year increments (10/1/84 – 9/30/92 etc.) using linear and log scales.
This post is intended to remind you that this case is not about the present and it's not about the $38MM dollars. Instead, the true significance of this lawsuit will be on display over the coming months and years as innumerable new class action lawsuits are filed against The Bullion Banks for their collective role in rigging and manipulating the precious metals markets.
2016 is shaping up as the year when countless conspiracy theories will be confirmed to be non-conspiracy fact: from central bank rigging of capital markets, to political rigging of elections, to media rigging of public sentiment, and now, commercial bank rigging of silver. In short, tinfoil hat-wearing nutjobs living in their parents basement have been right all along.