Silver Bear Squeeze

April 03, 2023

by Alasdair MacLeod Gold Money

This week, gold continued to consolidate, while silver moved ahead. This morning, gold was at $1979, up $2 since last Friday’s close, while silver at $23.85 was up 66 cents, for a two week gain of $1.33. Admittedly, silver has not yet recovered the levels in January, unlike gold.

Much of this is down to silver’s volatility. But because silver is no longer regarded in the markets as a monetary metal, it is gold which has benefited from banking jitters, while derivative traders were busy shorting silver along with other metals, expecting a bank crisis to increase the odds of an economic slump.

Now that the Commitment of Traders reports have been resumed, we can see that the hedge funds (Managed Money category) were seriously short in early-March, marking the lowest price at $20.