Silver Futures Break $38 For the First Time In 13 Years, And Then Break $39 A Few Hours Later

If you're a long-time silver investor, you know it hasn't always been the easiest path. And if you're not a long-time investor, some might say you should be grateful for that.

But while sometimes life makes us wait, today was certainly a special day of celebration for anyone who has been following the silver market for a while.

Which is of course not to say that the price can't go down from here, or that there won't be pullbacks. But I sure do hope you were able to take a few minutes at some point today to just feel good and appreciate how your patience has paid off. Maybe not to the full degree that satisfies you just yet, but hopefully you still had a smile on your face today as you watched the price soar past $38, and then $39.

Now with my sentimental Hallmark commentary out of the way, here's a look at this week's silver chart. Which if you're a silver investor, looks pretty darn beautiful.

In fact, for those who know Silver Bill Murphy of GATA and Le Metropole Cafe, I called him this afternoon, and today’s price action even made Bill smile (not easy to do when it comes to silver)!

Gold also didn't do too badly on the day either, and was up $45 to $3,371.

All of which was even somewhat more significant given that the dollar index was actually up on the day.

I mentioned yesterday how this is happening in the face of the bullion banks just setting a record for the largest net collective short position in history last week. And we also had some interesting comments from former JP Morgan precious metals managing director Robert Gottlieb.

You'll notice that he references that the ‘free float’ is extremely low, and if you have not read this report from a few weeks ago about just how low it could actually be, I think you would find that well worth your time.

This is another topic that I also covered in detail in the upcoming silver report I've mentioned I’m getting ready to release. And if you’re reading this now, and are a free or paid subscriber, you will be notified when that is released.

In terms of the banks’ net collective short position that reached a new all-time record last week, it actually came back in a touch this week, as the banks reduced the position by 2,064 contracts to a total of 52,324.

So while it’s slightly off the record, it’s still in historically high territory, and will be another thing we’ll keep an eye on over the coming weeks.

But that will sort itself out in due time, and hopefully you’re just getting set for a great weekend, and feeling good about the metals, and also what you’re doing in your life. I thank you as always for taking some of your time to read this column, and I’ll see you back here on Monday.


Sincerely,
Chris Marcus