One Big Open Interest Building in Board Silver

[neilgin1]

i'm sure you all have noticed this, but there is a huge open interest building in NY futures silver....July, as of this morning 9 May, over 106,000 contracts.

I, personally haven't seen this much in one contract month for a long time.

Its going to be interesting to see which way she breaks. Doc Rodee, I know is looking for lower prices.

over the long term, my views are clear.....much higher.

Now since the futures markets, imo, have been "infected", its obvious some entity is piling in the market, for a push......where?

based on past bias, it would seem to be lower.....just based on the "board", whilst demand has remained strong.

I even detect a third wave of NEW buyers, based on Ebay observations, which some may scoff at, but I believe represent the now dwindling middle class awakening to the concept of "hard money". I forget the percentage of Americans actively buying PM's, but isn't it in the low single digits?....so even an addition of 1% of our countrymen, wouldn't that equal 3 million more buyers?

i'm going out on a limb, even the though the harder trade would be to short the board, assuming one is foolish enough to EVEN trade the board, I opine that we trade to $26, and cover that tech gap up there. based on the higher open interest.

[johnbrickner]

Thanks for the insight Neil. Perhaps I should look at open interest, much more than I do now (like never). I'm just thankful I have members here like you who are kind enough to share your thought process on the events. Thank you Neil, keep writing.

[pennypicker]

I forget the percentage of Americans actively buying PM's, but isn't it in the low single digits?....so even an addition of 1% of our countrymen, wouldn't that equal 3 million more buyers?

I remember reading on this board that only 1% to 2% of Americans are buying PM's. I wonder what the percent was during the "Silver Rush" of 1980? I remember that was the first and only time in my life that the common worker was discussing silver during our lunch breaks.

[68Camaro]

The big push that many of us are anticipating will not happen until there is proper price discovery, not possible under the current system, and when stocks of both gold and silver are depleted.

The July contracts are interesting. Time will tell what that means.

[Mossy]

I suspect that if physical and paper PM ever separate, the dollar is going to crash. And vice-versa.