The Moment of Truth: Has the Silver Bullet Arrived?
Wealth Watchman

Moment of Clarity

For the last few months, silver has crept higher under the radar, that is, until the last 2 weeks, where it started to become mainstream news. The silver price, which the banks had remarkably kept $14s and under for several months, had finally come off the lows, and it’s quickly made up for lost time.

This is now “make or break” time for this new rally.  As you can now see in this chart, after its recent stellar performance, silver is at a crucial crossroads now.

Silver had crossed over $17, as high as 17.75, before the banksters beat it back down roughly $1. For now, they’re trying to hold $17 near this line again, and an epic battle is shaping up.  Silver demand has remained strong in India, at least into February or so, where the data stops, as you can see here:

Roughly 650 tonnes, or 20.9 million oz was bought up by India just in January, which leads to the next fascinating point:

That silver is reaching the breakout point in several important currencies. Take a look below:

Whoa!  Very interesting!

Both silver and the Indian rupee have shared a downtrend for the past 5 years, yet silver is very close to a breakout in the Indian rupee as well, reaching a trendline that was made 2 years ago.

It also appears that the silver formation in the rupee is a “reverse head and shoulders” too. Which often is a very bullish formation.

Before we go on, I want to say that the enemy though has taken countless breakout attempts and pushed them back down for years…however, this time might turn out differently, because of some recent “crosses” of some very key averages.

We’ve already experienced a bullish cross of the 50 day moving average(DMA) above the 100 and 200 DMA.  What we’re currently waiting for now is a crossover of the yellow(100 DMA) and the red(200 DMA).

It appears close, brothers. When that happens, it could put a nice boost in silver, and put the wind in its sails.  So that’s very bullish, but here’s what we need to be watching out for.

The Banksters Are Fighting the Trend

It seems the market rigging banks have stepped in against this rally pretty hard so far.

Last week alone, over 3 BILLION ounces of “silver” contracts(or 3 years’ worth of silver production) traded on the Comex futures exchange.

It appears that volume in Comex silver futures has reached the proverbial heights of Everest again, with the open interest in contracts now reaching an eye-watering 201,787!

Remember this: one Comex contract represents 5,000 ounces.

So 201,787 contracts means that some small traders(and some very large bankers) have now staked out a position on silver that is over 1 BILLION ounces. This is just within a few hundred contracts of the all time record!

It appears the banks are heavily shorting this rally, as they’ve done with every rally for the last 5 years. However, they’ve already had to frantically take the open interest to the all-time high just to barely contain silver to $17 per ounce!

Now why would they be fighting so hard?  Well, there are several reasons that come to mind.

$18 is a fairly important line in the sand that they’ve tried to keep silver away from(so far, successfully). I believe once $18 is broken with conviction, the buzz generated will likely bring in a great many new retail investors and crank up retail silver demand to heights that could be very difficult to handle for both mints and for the crooked exchanges.

Let me show you what I mean:

Comex Difficulty

For years, the Comex has had very adequate stockpiles of 1,000 oz, wholesale silver bars to meet demand with.  The open interest had been fairly small and contained, while the silver available was always more than enough to meet demand(with the exception of 2011).

However, there appears to now be a sea change in silver at the Comex warehouses, that I’ve reported on quite a few times. However, that seachange is now appearing on two fronts:

1) Since the May Day Massacre in 2011, the “silver turnover”  has been on fire.  In olden times, the amount of silver that went in and out of the warehouses on a weekly basis, was under 1 million ounces. Now though, silver will travel in and out each week in the millions of ounces. The average has been around 3 million ounces per week, but sometimes it’s been as high as 7 or 8 million! What this is telling me, is that there are no longer other silver stockpiles with which to meet this incredible demand. Increasingly, with each passing day, the silver at the Comex or Shanghai, is all there is.

2) Because this is true, and because of chronic silver deficits, there’s no longer an abundance of silver at the Comex to meet demands with. Take a look for yourself:

Brothers, that chart spells some serious trouble brewing ahead for the banksters.

Look at the bottom line in particular: silver claims per ounce, in past times, was between 10 and 15 to 1. A fairly reasonable ratio, considering very few ever took delivery.

Now though, since last April of 2015, that number has nearly tripled, going from about 12 to 1, to over 30 to 1! And it’s not a ‘blip’, either…but a powerful trend that looks to soar higher very soon.

Now you see the unique problem the banksters’ have!

While the Comex has had an elevated ratio in claims per ounce of gold, that’s something that they could live with for awhile: due to many other large, and secret stashes of gold being available to supply gold for the parties who wanted it…

But silver is totally different than gold! The reason silver is different is because it is needed by both stackers and Fortune 500 companies…and there are no more secret stashes of silver left to tap.  Industrial demand for silver is still roughly half of all silver mined. That is static demand that will not decrease overnight. Meanwhile silver stacking increases exponentially, with mints setting new records all over the world.

My gut tells me that, not if, but WHEN silver’s claims per oz ratio reach even above 50, they’ll be very, very exposed to danger.

Hence the epic battle has now been set up: the banksters on one side, and India, China, corporations, and stackers on the other.

The 100 and 200 DMA in silver could cross over very soon, and if it does, it could make things very difficult for the banks to contain silver beneath $18.

This is why I maintain that while I’m cautiously optimistic about the rally, I’m still waiting for silver’s price to clear $18 and change before I start to get excited.

If silver breaks much above $18 and gets away from them, it has a massive amount of kindling under it, for this fire to burn out of control(upward!).

However, if the banksters contain silver’s price though, it could likely fail hard, especially with open interest being so ridiculously high.

I believe we’ll probably see who wins that battle within the next 8 to 10 trading days.

Remember, I’m not waiting for another huge dip to stack…I’m still stacking, and just bought some 2 weeks ago. I just want our shield brothers to be prepared for whatever comes, so you’re not rattled either way.

Hope with caution, yet stack with conviction.

Conclusion

Brothers, for the past 5 years, the banks have carried out a brutal psychological war on stackers, that is sequenced, and carried out in stages, and right now is historically where silver’s price would be taken down.

Yet, so much is happening both on the charts, and around the world, that this time could possibly be different.

I would love for it to be different, believe me, I’m ready.

The Deutsche Bank confession and settlement, and the new Shanghai gold Yuan fix, combined with record silver demand from stackers, from India, and in the Shanghai exchange, could potentially make for some incredible moves in silver.

The only question is: will paper betting on the long side in Comex futures overwhelm what the bankers are willing to cough up on the short side?

Do the bankers see the dangers ahead as insurmountable?

Will JP Morgan and company look at all the data(believe me, they know everything we know, and much more)…and say…

“It’s time to cover and get out, while the gettin’s good.”?

That’s the question that matters most.  If the answer is yes, we will not only blow through $18…but we’ll also soar upward back into the $20’s very shortly.

If they’re determined to fight it…the dip could be fairly significant, and further make the Comex silver ratios go higher, while their stockpiles shrink even faster…which will eventually force the same conclusion: dramatically higher silver prices.

The only question is whether higher prices happens now, or 6 months from now.

Brothers, whatever these criminals do…my plan is quite the same(and I hope yours is too):

Be merciless, be stalwart, and make them pay dearly for their crimes, by taking as many ‘silver trophies of war’ upon this battlefield…as I possibly can.

I was scouring the battlefield here at the Truth HQ in the wee hours of the morning again today.  I do it all for you: my readers.  I do it because I wish that someone had told me all this many years ago. So, I’m here to do what I can to tell you what you must know, in order to be mentally prepared in the days ahead.

If you find value in what I do, please consider donating to my work here at the Truth HQ. Recently the largest bill of the year came due here, my annual hosting bill.  It was not unsubstantial.  There is no emergency within my Watchman funds, because I’m very conservative with what you donate. I pay bills, I stack some, and I save most. However, my funds did take a hit. So please give generously what you can, and I promise to keep doing what I can on my end, to help give you the info you need, to ‘bring the fight to them’.

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It’s a tough world out there, these days. I won’t sugar-coat it and pretend that it’s ever been anything else, that’s for sure, but all the same: if you think living and getting by today is harder than it was for our parents(or even for our grandparents for most of their lives), it’s not “just you”.

You’re not dreaming.

Life for Americans everywhere is getting worse.

“How?” you ask. Let’s scout out the territory a bit on a few points of interest. Feast your eyes on this:

US Real Disposable Income has been falling, and falling consistently for the last 12 years. All this is happening, in fact, while student debt soars.

thewealthwatchman.com