PodcastCommodity CultureEd Steer

No Way Out for SILVER Shorts as They Desperately Cover - 'I'm a Buyer': Ed Steer

Steer argues that reported inflation understates the problem, that heavy sovereign debt is weighing on currencies, and that fiat currencies have historically lost value through inflation. He characterizes precious-metals declines as efforts by large traders to cover shorts, pointing to silver outflows, concentrated short exposure, and options positions. He sees the current sell-off as a buying opportunity and expects China’s gold disclosures and imports to draw attention, while presenting his estimate of its undisclosed reserves as unconfirmed.

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Key Takeaways

Steer disputes the reported 3.7% CPI increase, claiming inflation is closer to 7.3%, and says he does not expect it to improve soon; he also argues that U.S. debt above $40 trillion and debt across the other G7 countries are weighing on currencies. Against that backdrop, he says a 5.3% 10-year yield does not compensate him for inflation, while invoking historical fiat-currency losses through inflation or hyperinflation and saying Alistair McLeod’s prediction that the fiat system will end within 18 months may be right.

Steer characterizes gold’s sell-off as a bullion-bank bear raid to cover short positions, citing the eight largest commercial banks’ unusually large gold short position even when gold was about $1,400 below its end-of-January level. He also alleges that commodity price management is meant to deter a shift from paper assets to hard assets, and views the repeated declines as a short-covering cycle and the current sell-off as a buying opportunity.

Steer links silver’s reported multi-year deficit and COMEX outflows—including about 13.4 million ounces over six business days—to a market where demand has not yet appeared in the price, while cautioning that COMEX and LBMA metal is already owned. He says the eight largest traders are short 103 days of world silver production and argues that covering 75 days of COMEX futures exposure would require a three-digit silver price before covering was complete.

GEO-POLITICS

Shelton’s Explanation — Steer criticizes Judy Shelton’s explanation that rising U.S. bond yields reflect a strong economy. He argues that sound-money advocates can be corrupted after taking government positions. He dismisses a possible gold-backed bond as background noise and offers no view on how one would work.

“And now she's at the Treasury Department, and she's doing her first mainstream media interviews, Fox News, I think she was on…”—

ECONOMY

Disputed Inflation — Steer disputes the reported 3.7% CPI increase, claiming it is closer to 7.3% and alleging that the government massages inflation figures. He says inflation is severe and does not expect it to improve soon.

“This was an ugly CPI number, and they say 3.7 % increase. but I think you can safely turn those numbers around and say it's more closer to 7…”—

Fiat Currency Outlook — Steer says Alistair McLeod predicts the fiat currency system will end within 18 months. He sees little to dissuade him from thinking McLeod may be right.

“so inflation the interest rate doesn't concern me at all because we're seeing the death of all fiat currencies you know I know Alistair McLeod is predicting the end of…”—

MARKETS

Bullion Bank Selling — Steer characterizes the precious-metals sell-off as a bullion-bank bear raid intended to cover short positions. He says commercial traders pulled bids and spoofed prices. He also notes that the 10-year yield briefly rose above 5.34% before being pushed back down.

“we were discussing this a little bit before we hit record today talk to us about should we be worried here should we expect further downside ahead what are your…”—

Gold Bank Shorts — Steer says the eight largest commercial banks’ short position was larger than before the crash, despite gold being about $1,400 an ounce below its end-of-January level. He says the position remained unusually large nine months later and describes the post-January sell-off as an unsuccessful effort to recover gold shorts.

“But as of last Friday's Commitment of Traders report, even though the gold price is down about $1,400 an ounce from the end of January, the short position held by…”—

Silver Deficit — Steer says silver has been described as being in deficit for more than six years, though the deficit has not yet shown up in the price and silver remains available. He cautions that metal held at COMEX and LBMA is already owned by someone.

“we've been in this so -called silver deficit now for the six -plus years, and it still hasn't shown up in the price yet, and there appears to be still…”—

FORECASTS

China Gold Repricing — Steer predicts China will eventually announce its gold reserves, and says the disclosure could produce a price that surprises people. He argues that gold would then be priced in China rather than in the COMEX paper market in New York.

“China knows that. And one of these days, they're going to come along and they're going to surprise everybody and they're going to announce their gold reserves to the world…”—

Coming Up

Steer calls the sharp silver decline a coordinated bear raid by bullion banks seeking to cover shorts, and argues that inflation figures understate price pressures; he says he plans to buy after the next data release.

They Tamped Down Silver

Steer says precious-metals prices are being managed through unusually large commercial short positions, especially in silver and platinum, and contends that covering those positions could drive prices sharply higher.

Manipulation of Precious Metals

Steer says the sell-off is manufactured rather than market-driven and advises buying into weakness, while warning that bullion banks are using price drops to reduce their short exposure.

Is This a Buying Opportunity?

Steer describes concentrated short positions held by a small number of bullion-bank traders and says the intervention is meant to keep investors in paper assets rather than hard assets as inflation rises.

Who Are the Traders Shorting Silver?

Steer reports heavy recent silver withdrawals from COMEX and other exchanges but says the outflows are not yet showing in prices; he argues a structural deficit and short covering could eventually push silver much higher.

Silver is Leaving the COMEX

Steer says China and other central banks continue accumulating gold and expects Chinese import figures to draw attention; he estimates China may hold more than 20,000 tons, while acknowledging the reserves are undisclosed.

China Keeps Buying Gold

Steer says Chinese households are favoring bullion over jewelry as an investment, and predicts Western buyers may return to physical metals after losses in silver and technology stocks.

Retail Buyers Growing in East

Steer dismisses discussion of U.S. gold-backed bonds as background noise, arguing that Washington, Wall Street, and government agencies are deeply corrupted.

Are Gold Backed Bonds Realistic?

Steer discusses substantial December gold options positions at very high strike prices, says their meaning is uncertain, but believes investors should take the bets seriously amid possible market upheaval.

$20,000 Gold Futures Contracts

Steer argues that enormous sovereign debts are undermining currencies and that reported inflation makes Treasury yields unattractive; he expects fiat currencies to lose value and prefers gold.

Sovereign Debt Crisis Ahead?

Steer says civic resistance is weakened by an intentionally diminished education system, and compares the West’s political decline with the final era of Rome.

Keeping Tyrants in Check

Steer describes his Gold and Silver Digest as a frequent newsletter focused on precious-metals markets; the host thanks him, promotes the program, and closes the episode.

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Important Disclaimers

Not Investment Advice: For education only — not financial, tax or legal advice.

AI-Generated: Made by AI from source transcripts and may contain errors.

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