Ed Steer argues the metals selloff is a deliberate, repeated COMEX washout rather than a logical response to inflation or rates. He says the setup remains extremely bullish because bank/ commercial shorts are near record lows, physical and official-sector buying is strong, and the current plunge may be the final flush before a much larger revaluation in gold and silver.
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Ed Steer’s core thesis is that the sharp gold-and-silver selloff is not being driven by rational macro fundamentals, but by an engineered paper-market washout designed to shake out longs and let commercial traders cover shorts. He repeatedly says the mainstream explanation — inflation fears, higher expected rates, or a stronger dollar — is “pure BS,” and he frames the move as part of a long-running price-management scheme in COMEX futures that has suppressed precious metals for decades. He supports that view by pointing to the behavior of commercial traders and bank positioning. In his telling, the banks’ short position was already the lowest on record a few weeks earlier, and the latest downdraft makes the setup even more bullish because the downside flush is helping commercials cover more shorts. …
Tactically, the selloff looks like a capitulation flush within a still-bullish metals setup, but further volatility is likely until short covering and forced selling run their course.
Over the coming weeks to months, the base case is a rebound if physical demand stays firm and commercial shorts keep shrinking; if those signals fail, the washout could extend longer than he expects.
His structural view is that precious metals are in a multi-decade revaluation as fiat credibility erodes and price discovery shifts away from Western paper markets toward physical-led Eastern markets.
Banks have suppressed precious metal prices through COMEX futures short selling for 50+ years
Fixed exchange rates and price suppression claims since 1975, with most recent attempts beginning about five years ago
Commercial traders are tricking and spoofing to force long traders to sell, allowing commercials to cover their record-low short positions in gold and silver.
The speaker explains the mechanics of how commercials are manipulating bids to flush out long positions for covering.
The COT report and bank participation show the most bullish setup in 25 years, making the upcoming rally even stronger despite current ugly price action.
Speaker says ugly price action creates an even stronger setup for the upcoming rally.
Why would mainstream financial media say renewed inflation fears are causing precious metals to sell off?
Ed Steer says the mainstream explanation is nonsense and part of broader disinformation. He argues the media invents a story after the fact, while the real driver is commercial traders using a wash-rinse-spin cycle to flush out long holders.
Do higher interest rates and a stronger dollar really explain lower gold and silver prices?
He says the historical relationship is unreliable and often contradictory. He points to a tiny move in the dollar index and says it cannot plausibly explain the large drop in gold and silver; instead, he sees it as another tired trope used to justify manipulation.
What is the true price of gold and silver?
He says nobody knows the true price because gold and silver have been suppressed for decades in the COMEX futures market. In his view, if banks were not acting as short sellers of last resort, prices would be far higher and would reflect real free-market demand.
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