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Date Posted: 11:45:33 1/18/23 Wed
Author: Jasper
Subject: Writing from Sprott

.
Circling back around, here's the thing to note regarding the price action since 2023 began. As mentioned at the beginning of this post, through the first nine trading days of 2023, COMEX gold is up $95 or 5.2%. This is clearly the result of spec hedge fund buying as total COMEX gold open interest has risen by 55,504 contracts year-to-date. That's a rise of 12.6% since the close on December 30.

(It should be noted, of course, that 55,504 COMEX contracts equates to 5,550,400 digital ounces of "gold" that have been created on COMEX to meet this Speculator demand. That's 172 metric tonnes of pretend gold...bought by speculators that have no intention of taking delivery and created by Banks that have no gold to deliver.)

So the COMEX gold price has rallied in 2023 as speculator demand for contracts has risen. But what about COMEX silver and its FLAT/UNCH price. What's going on there?

Since the posted total of 129,722 contracts on December 30, COMEX silver open interest through Friday, January 13 has only risen by 2,011 contracts to 131,733. That's a rise of just 1.5%. Thus you can easily conclude that while speculator and hedge fund demand has been driving COMEX gold higher, a near complete lack of speculator and hedge fund demand for COMEX silver has led to its price stalling so far in 2023.

Is this due to those four short squeezes in 2023? After getting burned four times in four months, have the hedge funds wised up and decided not to play for a while? That sure appears to be the case.

And if that's true, then what will it take to get those funds to enter the arena again and assume their usual positions on the LONG side?

A sustained drop in the dollar?
A continued surge in copper?
An expected change in Fed policy?
All of the above?
The point is....COMEX silver has yet to rally in 2023 because the hedge funds aren't buying it. While you can be certain that, eventually, this Spec interest will return, it may take a combination of those bullets listed above to make it happen. That next rally, when it comes, will finally break price to the upside and silver will lead the way again one again.

https://www.zerohedge.com/news/2023-01-17/no-interest-comex-silver

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