by David Brady
A quick word on today’s action in precious metals, specifically Silver. The idea that a bunch of retail traders could squeeze shorts in Silver on the COMEX futures market like those in a microcap stock such as GameStop is ludicrous, imho. The Silver market may be small, but the volumes traded are far bigger than the market cap on GameStop. Second, the shorts in GameStop were hedge funds. The shorts in Silver are the Bullion Banks. They can create futures contracts at will—and in almost unlimited amounts—and sell them into the futures markets to drive down prices. A bunch of retail traders have little or no chance against such volumes. The end of the COMEX is far more likely to be driven by demand for the physical metals than any raid on shorts, imho.