The author argues that if the Fed does not hike rates, gold and silver could experience a major short squeeze that starts a rally the Fed cannot stop. The catalyst is the upcoming Fed decision, with the mechanism being positioning unwind in precious metals. The main risk implied is that a hike would invalidate the thesis.
The author argues that if the Fed does not hike rates, gold and silver could experience a major short squeeze that starts a rally the Fed cannot stop. The catalyst is the upcoming Fed decision, with the mechanism being positioning unwind in precious metals. The main risk implied is that a hike would invalidate the thesis.
The author claims silver is up a lot while silver miners remain sideways, which they call a classic rugpull pattern indicating distribution. The mechanism is that miners failing to confirm the metal's move signals underlying weakness and a likely reversal lower. The author says they flagged this two minutes after the market opened, implying an imminent near-term drop. Main risk is that miners may simply be lagging and catch up to silver's move.