Now That the Dust Has Settled on #silversqueeze (RIP)

Here is an excerpt from the January 31 edition of Notes From the Rabbit HoleNFTRH 640; a segment I probably spent too much time on, given the spectacular nothingburger the #silversqueeze promotion turned out to be. Silver is back near the constructive technical standing it was at before this ill-conceived hype fest got into the market, and gold is well lower. Silver remains technically constructive and gold is so normal (for this moment in time) it ain’t funny.

#silversqueeze

Gold bugs (the term as applied here means gold and silver perma-bulls) are old fashioned. The gold bug “community” is a cult with a long tradition of using regular peoples’ hearts and souls as psychological leverage. After all, the gold community’s product is promotion of honest money in the face of a debt monster Leviathan that thinks nothing of adding trillions more on top of already un-manageable trillions. 

Gold promotion is aimed straight at peoples’ humanity. A sense of right and wrong and us against them is the foundation of the cult. You wonder why the average retail gold bug is so committed? So unyielding? Well, it is because they are empowered by the forces of good in the face of evil. Throw in a few ghost stories (newsflash: all markets are manipulated) about the evil goings on in the futures markets, COMEX and paper gold (and silver) markets and you have the basis for a contingent that is all-in mentally; heart, soul and intellect. 

It’s monetary evil, and righteousness shall win out! We… shall win out!

No it shan’t, and no you won’t unless you think for yourself. It’s a war. Some of you old timers remember me repeatedly making that point in the 2001-2008 bull market. Have your most firmly held inner beliefs. Have your intellectual calculus that the leveraged system is not sustainable. Have your emotions. I have all of those things.

But what I don’t have, after learning very early on that it is dangerous, is a commitment to anyone espousing the righteousness of gold to me; using slogans like “Got Gold?”, nicknames like CIGA (Comrades in Golden Arms) and undercover ghost story telling by the sleuths reporting the evil goings-on by the big investment banks aimed at gold and silver and their righteous proponents and supporters. It’s a rock, not a god. 

#silversqueeze? After processing all of the information on Friday and as the dust settled I ended up shaking my head and thinking ‘same old gold bugs’, trying to modernize a traditional pitch, jumping on an internet trend (i.e. Reddit, Robinhood, the rebellion of the little guy) and then provide a slew of TSX-V speculative garbage, among other sounder vehicles, as a way to ‘play’ it. 

If it’s honest money it is going to get where it is going. You don’t need to manufacture a short squeeze, suck less experienced people in left and right and gain headlines. But you see, the cult’s promotion of good vs. evil, us against them, is such a foundational tradition in the “community”. Also, there is profit motive. Screw honest money, this is a casino!

The call to action above concludes “Gold Ventures has spoken”. “Stop the silver manipulation”. 

Oh really Gold Ventures? You have spoken, have you? I don’t even know what that entity is, but all I really need to know is what it put out publicly. Someone hastily writes a declaration in the wake of real cultural events like the Reddit/Robinhood uprisings by young people who are not of Wall Street, and uses a hashtag behind which all the usual, old fashioned gold bug dogma is spewed… 

    • Paper silver manipulation.
    • The system is rigged (duh).
    • Step up, unite, bring the message out!
    • $50 target, but wait, there’s more! $1000/oz. adjusted for inflation!!
    • Because after all, this is the short squeeze era (I read it on Reddit).
    • It’s about freedom, you know. The millennials said so.
    • Keep pushing CIGAs me laddies, I’ll be right behind you (in a foxhole).

The one thing that the promoter writes that I would take seriously is “you are buying value”. But that is only if you are buying gold bullion (or silver bullion at the right price).

I’ll stick with the concluding view from Friday morning’s update, made before I had a chance to fully process things. If it works spectacularly, a position in SLV should work very well before it reverses the big gains. If it does not work, the technicals still indicate a grind higher at this point. If it fails to work in spectacular fashion, the promotion will precede a new leg down, which is not currently in the TA.

[update excerpt omitted from public posting]

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