Shenanigans in the silver market.

Silver has tacked on a whopping 30% gain this year and some people are happy with that. This feeling is not universal though and there are forces that are moving heaven and earth to cap silver's rise and force its price back from 20+ to 18. If you want to see how these forces are trying to scare investors, the article in Al Reuters is a good case in point:

http://www.reuters.com/article/us-silver-investment-idUSKCN0ZU07K

Goldman Sux is leading the charge. Large sums are lined up on each side. Commercials have increased the short interest to record levels while investors have placed large bets on silver going higher.

In the past the banks like Goldman Sux would be allowed to place large short positions and force the investors to dump their positions. This would occur because the investors buy the silver contracts on margin. Does this sound criminal to you? It does to me.

There are rumblings though that Goldman is going to get its come uppence one of these days.  You see, the investors can demand delivery of the silver knowing that Goldman can't deliver. Then occurs what is known as a "commercial signal failure." All H breaking loose in other words. According to Andrew Maguire, such almost occurred in the gold market and the possibility is developing in the silver market.

The charts told me that silver prices would head past $20 and they did. The next leg of the PM bull market should be even more spectacular than the first two legs. As usual, we can not tell WHEN and HOW far.

But, we see the black swans circling Europe. The conversion of Turkey into an Islamist state (and massive arrests in Turkey) and the Italian banking crisis are heating up along with the ECB's money printing. The EU wants Italian banks to force its depositors to "bail in" which is an euphemism for the confiscation of deposits. Italy is resisting. Their choices are bankruptcy of the banks or angering depositors.