May Day Silver Massacre 5 Years Later- This Year We Bathe in the Blood of the Shorts!

5 years ago today, the white metal was on a 5 month tear, which saw silver skyrocket from $18/oz to $49.73.  
Moments after Globex trading opened that Sunday evening however, the banksters unleashed a paper MASSACRE in silver of unprecedented proportions…

Silver was sent down the proverbial mine-shaft, plunging an epic $6 (13%) in under 10 ticks. 

If you’re like us, the moment was like the JFK assassination or 9/11.  You remember where you where, what you were doing, what things smelled like, and the ghastly, stomach wrenching horror as you clicked re-fresh repeatedly on the Kitco charts, unable to believe your eyes.  

Over the next several days, investors BTFD in major fashion, and brought silver within reaching distance of $50 again, but the psychological damange had been done- silver was no longer a shooting star to the upside, and the algos flipped from BTFD to STFRallies. 

Gold wouldn’t begin its trip down the elevator shaft for several more months (the weekend S&P downgraded the US marked the top for gold), but it was all over for silver’s move.

The selling began, and gold and silver endured 5 brutal years of relentless bankster smashes. 

Analysts and pundits called for bottoms repeatedly.  Silver guru David Morgan infamously stated silver would not trade below $30.  It did…and even half of that number didn’t stop the plunge. 

The Doc even stuck his neck out in December of 2013, stating that he believed the bottom would be made within the next 10 trading days, with gold trading in the $1200’s and silver with a $17 handle.

The metals did bottom that week and made a furious rally in January of 2014, but alas-it was merely a bear rally and the next 18 months saw new lows- gold broke $1070 and silver traded nearly to $13.50/oz.

The lows saw MASSIVE DEMAND for physical gold and silver, with silver being affected the worst.  

The US Mint sold out of American Silver Eagles, and when sales resumed, the silver eagle coins were rationed to dealers.

The Royal Canadian Mint rationed Silver Maples, and even ran out of 10oz and 100 oz bars.

Fund Managers claimed the US Mint was intentionally creating the shortage to keep physical investors out of silver

The US and Royal Canadian Mints turned to the Sunshine Mint for help, and The Doc & Eric Dubin asked Sunshine CEO Tom Powers to shed some light on the shortage. 

As the calendar flipped to 2016, the shortage had eased- but the market had changed.  

Gold and silver began to rally, and after several weeks with a huge COT build up- the PM pundits begin calling for another epic take-down, joining the CNBS & Bloomburg pundits calling for triple digit gold and $10 silver. 

Instead, gold scorched another $100 higher, and silver jumped $4.

Humorously, on the afternoon of the 5 year anniversary of Silver’s May Day Massacre, the white metal is within a few cents of critical resistance at $18.   A move through $18 is expected by most to trigger a massive capital inflow into the metal as the algos and hedgies flip back to the long side after 5 years of assisting the banksters with relentless shorting.

Pundits are back out declaring triple digit numbers are ahead for silver, and frankly, it wouldn’t surprise us.

We’ve always believed silver is fundamentally undervalued, and now more than ever- even vs gold.

We suspect May 1st 2021 will see gold and silver miles away from $1300 and $18.

Buckle up, and enjoy the bull. 

May 2016 be the year we bathe in the blood of the shorts…