If you have been following the silver market for any amount of time you’ve probably heard of Ted Butler. And if not you, will probably want to.
Ted has been following the silver market for a few decades and is one of the leading experts on the manipulation. Perhaps even more importantly, Ted has spent his career sifting through the data beneath the surface that most people simply have no idea about.
Why does silver go up or down? Is the silver price reacting to natural supply and demand fundamentals? Or has the entire price setting mechanism become dominated by paper trading shenanigans thanks to the same banks who have been caught rigging markets for decades.
In Ted Butler’s opinion, if you want to understand the price of silver, you simply have to start by looking at the positioning changes that are happening each week. For years we’ve seen patterns of large paper short sellers driving the price down by triggering stop orders and high frequency trading vehicles, only to buy the contracts back lower. In fact Ted often reports that the largest silver shorting bank has a perfect track record that defies anything I’ve seen in my trading career.
However lately Ted has seen that the same bank(s) that have been massively short silver have been able to dump their position onto the chart reading hedge funds. Which could be a sign that rather than keeping the price low, there could now be an incentive to finally let the price fly. In other words, previously the big banks made a lot of money by seeing silver go down. Now it appears that they would make a fortune if the price goes up. And we know that in today’s markets the big banks often end up on the right side of these things.
Does that mean we’re nearing the break point where silver finally explodes higher in price? Only time will tell. But the position changes are a big clue that it certainly could be close.
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