I just checked the gold and silver short positions and it was very telling. There was a massive silver short covering by the commercial hedgers. When you understand that the commercials are the major source of manipulation in the precious metals market, this move is more then telling.
The way it seems the game is played and has been played for several decades, the hedger(s) will put a sizable amount of short contracts on the market. These contracts will move the price of silver down. As the price moves down, the mood of the market will push the price down further. Once the price hit a low the hedger(s) will step in and buy at a lower price than they issued their original short contracts or when physical silver was available, they would buy physical silver.
Recent financial articles have been alluring to the break out of precious metals. Up to now these were all red herrings because the manipulators could and still could move the market as they desired, also known as ‘painting the tape’.
This time I believe it maybe different because now the manipulators are dumping their short positions in a big way. Also rumors are abound with trade wars on the horizon. Economically the world is in shambles, manipulators can play their games when there is money available but the (real) money supplies are at their lowest points ever, so there is little room to play their game. Another issue is more people have realized about the game so it is harder to pull the wool over the public’s eyes.
In conclusion, the hammer may be ready to drop.