THIS HAS NEVER HAPPENED BEFORE
I’ve been analyzing this for the last 6 hours and this is VERY BAD.
World silver production: ~800M ounces
BofA & Citi shorts: 4.4 BILLION
I’ve spent two decades in macro, and I thought I had seen it all.
I WAS WRONG.
Here’s what I uncovered:
What you’re looking at isn't just a large short position.
It’s a solvency event for the entire commodities complex.
Let’s break down the technicals of why BofA being short 1B ounces and Citi being short 3.4B ounces is not just bad trading, it’s a systemic disaster.
THE SUPPLY/DEMAND DISCONNECT:
Global silver production is effectively capped at 800M ounces per year.
The combined short position of just two banks is 4.4 BILLION ounces.
Do the math. To cover these positions, these banks would need to buy every single ounce of silver mined out of the ground for the next 5.5 years.
– No jewelry
– No solar panels
– No electronics
– No coins
But here is the kicker: Industrial demand already consumes ~60% OF ANNUAL SUPPLY.
The "free float" of investment-grade silver is tiny.
They aren't shorting a market, they are shorting a phantom supply that DOES NOT EXIST.
How is this even allowed? It’s called unallocated accounts and rehypothecation.
The bullion banks have likely leased the same physical bar of silver to 10, 20, maybe 50 different clients.
They sold you "silver exposure," took your cash, and used it to suppress the price on the COMEX.
It works fine as long as everyone is happy holding paper... but the moment confidence breaks, the moment a whale like a sovereign wealth fund or a tech giant demands physical delivery, the game ends.
"Has this happened before?"
The answer is a hard NO.
People point to the Hunt Brothers in 1980. That was child's play. The Hunts were trying to corner the market by buying physical.
This is the opposite. This is institutional naked shorting on a scale that defies physics.
The banks have sold 5x the annual planetary output of a strategic metal.
We are looking at a "Force Majeure" event.
When the squeeze starts, the Comex will likely change the rules. They will switch to "cash settlement only."
They will tell you, "Sorry, we can't give you the silver we sold you, here is the cash equivalent at yesterday's closing price."
But the real price, the street price for actual physical metal, WILL DETATCH.
We’re about to see a bifurcation of the market:
1. Paper Price: Managed, suppressed, irrelevant.
2. Physical Price: Vertical.
IF YOU DON’T HOLD IT, YOU DON’T OWN IT.
Btw, I’ve called every major market top and bottom for OVER 10 YEARS.
When I make my next move, I’ll share it here for everyone to see.
Still haven’t followed me? You’ll regret it, just watch.
NoLimit auf X |
