More On the Silver Code Red

July 26, 2023

by Ted Butler Silver Seek

Last week, I made public an edited version of the more extensive weekly review sent to subscribers earlier. As previously stated, I believe there is a current market emergency in the COMEX silver market based upon official data indicating a massive increase in futures positioning of more than 130 million oz (26,000 contracts) as reported in the new COT report, as of July 21.

While I tried my best to rely on the hard data and offer the most reasonable interpretation of that data, this is very complicated stuff, so it’s understandable that things may not seem as clear to others as they are to me. I’m sure many (if not most) are unclear on what I mean by a market emergency, the likes of which hasn’t existed in the COMEX silver market since the Hunt Bros emergency of 1980, 43 years ago. So, let me use instead a more recent market emergency – that of the LME nickel market of March 2022, as a contemporary example of what I’m talking about. Here’s a good run down of what transpired at the time.