Photo by Zlaťáky.cz on Unsplash
 

The stunning and historic gold and silver rally continued on Tuesday, with the gold futures crossing over the $3,800 level for the first time in history, while silver reached a new high for the current rally as well.

Both metals sold off a bit in the afternoon, although the gold futures are still up $22 to $3,797.
 

The high of the day, of the current rally, and of all time is now $3,824.55.

Silver was having another big day as of this morning, although the afternoon sell-off leaves the price up 5 cents to $44.27.
 

Silver did hit a new high for the current rally at $44.77.

Keep in mind that this is also happening while the short position in silver held by the banks remains near the all-time record high.
 

There was some short covering on last week's COT report, but not a lot. Currently, the banks are short 43,464 contracts, with the all-time record being 54,388 contracts, which occurred a few months ago on July 1 of this year.

That means the banks are currently short 217 million ounces of silver in a market where the free float is down to 153 million ounces (the 4,431 ‘Other London Holdings’ x 35,274 ounces per tonne), while the daily turnover at the LBMA has hovered around the 250 million ounce mark.
 

Here’s the daily turnover from the LBMA.
 

Not making matters any easier for those who are short gold and silver is what Luke Gromen describes about China weaponizing gold.

Lastly, I posted a video today in which Jesse Day from Commodity Culture joined me to talk about former J.P. Morgan precious metals managing director Robert Gottlieb's comments about how he had already expected silver to hit $50 this year, but given the current conditions, he now thinks it can happen even sooner. We also talked about the comments from TD Securities about how the current pace of ETF inflows has us just 7 months away from running into a supply issue at the LBMA.

Jesse has a really good understanding of the markets and is quite well-spoken, so for some further insight into the latest activity in the gold and silver markets, I think you would enjoy this.
 

So that’s it for today, but I’ll look forward to checking back in with you tomorrow to see what the rest of this already exciting week brings in the gold and silver markets.

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