I will take a stab at it.
The COMEX is where people can buy silver or other commodities. Usually, the players there don’t want the actual commodity, they are just making bets. Well, silver has become very tight. And the COMEX doesn’t have enough for all of those who do want physical this month. So, what COMEX has been doing, is offering to pay more money to make the physical buyer, say OK, pay me more money, I really didn’t want the physical.
It sounds like they were trying to pay 50% MORE MONEY than the contracts were worth, to make people who had contracts be satisfied. Now, this post is saying that they got 80% over the current price of silver. Silver is around $35, $36 tonight. So, 80% of that is over $50 an oz for silver. I am not sure what base price they are using.
It is very significant. It means that the COMEX is near breaking. There are rumors that there are massive shorts on silver by JPMorgue. The price could easily go parabolic.
Hope this helps. Any one who knows more, please, post away!
Thanks for your analysis. Doesn’t sound good.