Most people who follow these things are aware of the remarkable expansion in open interest on the Comex in silver contracts during this price decline.
This is unusual because more often open interest follows prices, as metal bulls open contracts with buying or close them out with selling.
Gold is following the more conventional decline.
But on the other hand, we have silver inventories increasing remarkably in the 'transparent holdings' which Nick Laird, data wrangler, tracks for us. Nick has some of the best collections of regularly maintained charts around.
And gold inventories have continued to be drawn down.
One might say that physical gold is disappearing, and silver is being overwhelmed by paper selling. You could conclude other things of course. And that is part of the problem with the opaque US markets, so many of which have been revealed to be rigged.
I emailed my friend Dave last night and said, 'I think with this overnight plunge to 1183 the bottom is in, with a possible retest.' Let's see if that holds. It certainly is oversold with record short interest in gold.
One of the reasons it feel like a bottom is because some of the usual suspects and shills have been seen slithering out from under their rocks to spread their gloom, for themselves and for some of the funds I suspect.
China comes back from its holiday this week. And they are not happy about alleged US interference in the Hong Kong demonstrations.
As you may know one of the big rumours is that a deep pockets long is holding quite a few December silver contracts and refusing to fold them against downward price pressures. The most frequently heard name is China. There are a number of motives attributed to this.
Since the markets are opaque we can only guess.
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