VIDEO — Ed Steer: Silver Market on a Knife’s Edge
Charlotte McLeod , 13 April 2021
The silver squeeze first started making headlines more than two months ago, but the movement continues today, led by retail investors who continue to snap up physical metal.
Ed Steer of Ed Steer’s Gold and Silver Digest said that while he commends those who have been buying physical silver, there’s a reason their efforts haven’t led to a sustained silver price increase.
“They’re certainly having an impact … as far as the physical market is concerned, but as far as the short position that exists in the COMEX futures market, it doesn’t make any difference at all,” he said.
“The only way you can squeeze the shorts is by going into the COMEX futures market and doing that,” added Steer, who is also a director of the Gold Anti-Trust Action Committee.
The entities behind silver short position in the COMEX futures market have changed over time, but Steer said that currently he and silver analyst Ted Butler believe that the “big two” are Citigroup (NYSE:C) and HSBC (NYSE:HSBC,LSE:HSBA). Along with other large traders that are short silver, they stamped out the price rise that came when the silver squeeze was first gaining traction.
“The price explosion evaporated in just a few hours because they went in and shorted the market by as much paper silver as necessary to drive down the price,” he said.
