October 27, 2024 | Will a “Short Squeeze” Spike Silver?

The late, great Ted Butler spent the final decades of his life railing against the way the silver market was manipulated on the Comex and other exchanges while capitive regulators looked the other way.

In very simple terms, he accused big banks, hedge funds, and commercial silver buyers of using futures contracts to suppress the metal’s price, thus cheating miners and investors out of the profits that would otherwise flow from a rising price — while concealing the dollar’s true weakness.

Here’s Butler in 2018 explaining this thesis in some detail:

Squeeze Chatter

Butler predicted that physical demand for silver would eventually swamp the paper markets, forcing banks with big short positions to panic-cover, sending silver straight up to its (much higher) intrinsic value.

Obviously, I love this scenario and hope it happens right away.

And now that silver is spiking…

… the specter of a short squeeze has re-emerged. Here’s a very concise take:

For much more, search “silver short squeeze” on YouTube:

Imminent Squeeze or False Alarm?

Is what should have happened long ago finally about to occur? Well, if you aggressively short a market that’s in deficit as silver is, then eventually you’ll get burned. This long-awaited bit of poetic justice is mathematically possible and definitely well-deserved. So let’s see how it goes. And in the meantime, keep stacking.

John Mauldin October 27th, 2024

Posted In: Thoughts from the Front Line

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