Silver Exothermia

May 29, 2015

Every new chemistry student is warned about the dangers of pouring water into acid. The water causes the solution to boil over violently, splashing concentrated acid out of the container.

By definition, concentrated sulfuric acid is very dense. Adding water creates a sudden dilution, which produces heat or an exothermic reaction.

Over the past weekend, there were bullish cries from those who noticed something unusual about the commitment of traders set up on the COMEX silver and gold futures market.  Where silver has been in a nearly forgotten state of massive concentration – a great (transparent) density influencing the price on a daily basis.

Traders noticed a build-up of the long side of the blind, alto-driven speculative variety.

In a free market, this might be indicative of something meaningful about the future. But these markets are far from free–silver lying at the very heart of darkness.

The build of the speculative long manifested as it seemingly always does, by simply lowing hanging fruit ripe for the HFT-driven commercial paper short harvesting. Just another cycle driven by the largest multi-national and government-supported financial institutions civilization we will ever see.

Of course, down went the price–as if on cue. And sentiment follows immediately after. True market conditions buried deeper.

All one needs to do is simply look at the other side of the trade to predict more accurately what was actually coming. Watch what the elephants do.

It is this concentration, this saturation, which completes the nearly singular control of price mechanism. That is the key. It is the key to understating what will indeed be one of the most volatile returns to reality anyone alive today will have witnessed.

The analogy is for the eventual return to fair market value. But far from a graceful one. Price manipulation creates a massive disconnect between the actual market and what we’ve become accustomed to, or perception.

Once the real return begins, it will be like adding to water to acid. Concentrated acid is what we’ve got as a result of years of misallocation and disconnect. It is the evolution and maintenance of a massive and profitable paper short position.

We cannot escape market principles any more than we can escape physical laws. Therefore, the return will likely be an accident that boils over to other markets. The exothermic reaction either boils over from silver into derivatives…

Or it boils over to confidence.

It very likely boils over further and deeper into society. Either way, it is a not a gradual return. While the acid looks placid and not volatile it is wise to head the chemistry.


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Peru became the world’s largest producer of silver in 2012.