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With less than one day left in what some long-time silver industry veterans are calling the most important COMEX options expiration and delivery period in silver history, the price appears to have been “spoofed” again. This time to right under the $28 level.
Of course the significance of the $28 level is tied to the COMEX silver options board, where there's a large call option open interest on the 28-strike that expires this Tuesday, February 23rd.
Traditionally, the banks are short the options, which means that if that's indeed the case again this time, they would have to start paying out on those calls if the price of silver rises above $28 by expiration later today.
For those who have been following the silver market for a while, that’s usually when silver sees one of those infamous “spoofs,” that former CFTC commissioner Bart Chilton confirmed in detail in this shocking interview.
Yet that the current commissioners of the CFTC remain stunningly oblivious to.
Perhaps how Tuesday’s trading plays out will be the most current barometer of just how tight the banks’ control of the silver price still is at this point.
Because according to past history, you would expect that they’d be throwing in the kitchen sink to keep the price of silver below $28 today (let alone $29 where there’s another large call option position, or $30 - where there’s a REALLY large open interest).
In either case, it should be an exciting day of trading in the silver world. Especially just one day before the latest COMEX silver delivery period begins too.
For a primer of what to expect, click to watch the video now!
By Chris Marcus of Arcadia Economics
Chris is also the author of the recent book:
The Big Silver Short: How The Wall Street Banks Left The Silver Market In Place For the Short-Squeeze of a Lifetime!