UPDATE: "WE ARE LIVING THROUGH HISTORY RIGHT NOW" - ED STEER ON THE SILVER CRISIS. 🚨
Precious metals expert Ed Steer just gave one of the most urgent interviews of the year. His message is clear: the 50-year price management scheme is ending.
✅ "The parabolic run was just the tip of the iceberg. The party is just getting started."
The Driver: A Historic Short Squeeze.
➡️U.S. bullion banks have covered 29,000 COMEX short contracts since April.
➡️For the first time in history, they are now NET LONG silver.
➡️But they still hold a massive gross short position of 18,000 contracts. They are in a "lose-lose situation."
💥 "This is the beginning of Ted Butler's 'Bonfire of the Silver Shorts'... The shorts are in dire straits."
The Unstoppable Physical Reality.
➡️We are entering the 6th consecutive year of a structural supply deficit.
➡️China's new export controls (effective Jan 1) require a license to ship silver out. They control ~60% of global refined supply.
➡️The Shanghai physical premium is 13.8% above COMEX. "They just can't refine it fast enough."
Why This Isn't 1980 or 2011.
➡️ "This time it is totally different. This is a structural supply-demand deficit... It will be with us for 5, 10, 15 years."
➡️ "The silver needed to fill this deficit has yet to be discovered."
On Price & Strategy:
➡️"A three-digit silver price... is going to put a lot of trading houses in insolvency immediately."
➡️$500/oz is "not unreasonable" and could become the new floor.
➡️"I have physical silver in a vault. I ain't going to be selling an ounce of it... It is pure wealth."
‼️"The silver needed to fill this deficit has yet to be discovered."‼️
Silver Miners: The "Bargain of the Century."
➡️They have horribly underperformed the metal (up only 1.14x vs. silver's 158% gain).
➡️"I have the impression... that there's somebody out there definitely suppressing the price..."
🎯 The Bottom Line: The desperate short covering and the unbreakable physical deficit are colliding. The paper market's control is over. True price discovery is ahead. 📈
OP: Mark4xx