The reason is simple. There is a lot of value there, particularly when you consider that silver is the only commodity in the world that is still well below its 1980 record high. So we need to look past the stranglehold that has gripped silver – and gold – these past few months. Importantly, strangleholds don’t last for ever, and indeed, there are signs that silver is coming to life.
Comex open interest expanded 20,000 contracts last week on a 2% jump in the silver price. That spectacular OI jump is an indication of two things.
The fact that it occurred on a relatively small price increase shows the dogged determination of the shorts to keep their grip on silver and keep capping its price.
But it also shows something else. Silver is not that far from a record high in open interest. That it jumped by that much in one week is a good indication of the huge amount of speculative money moving into silver in anticipation that the short’s stranglehold is about to be broken..."
- Source, KWN, read more here
