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What is Commercial Signal Failure

I would expect TPTB to step in at some point before this goes too far and “change the rules”, if it is the CBs behind the silver short positions.

But they can’t just massively sell physical silver into the market like they could with gold, because they dishoarded their stash. Or did they?

What is Commercial Signal Failure

I do want to point out something about these CSF’s. Note that once they run their course, the market generally collapses and gives back a very large percentage of its overall gains. That is because once all the Commercials have finished buying back their bleeding short positions, there is no one left to buy and prices now come tumbling back to earth. In some cases, all the price rise is erased; in other cases a substantial portion are given back but the market then finds a footing at a new and higher price level.

As with any market, the potential always exists for such a development especially when there exists a very large short contingent in a market that has already seen a decent price rise. Any further exacerbations of the supply/demand balance can trigger one of these events. If one does happen in silver, trust me on this one, you will not have to ask the question: “Gee I wonder if we are seeing a Commercial Signal Failure in Silver”. You will know it.

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