CLICK HERE TO WATCH THE INTERVIEW
I’m rarely left speechless by markets. I’ve been doing this for a few decades, I’ve seen some things, including the financial crisis, the flash crash, the COVID meltdown, and more, but what is happening in metals leaves me with few words. Mostly because there wasn’t an obvious single event or catalyst, it has been a slow-burn of compounding of narratives that eventually snowballed into an irrational herd mentality.
The metals markets are broken.
There are traders spending $5k for $110 calls expiring next week and $20k for options expiring next month. The most liquid option months are seeing the most strikes with bid/ask spreads of 50 cents to a dollar ($2500 to $5000).
There are six-figure futures accounts blowing out with a few micro silver futures. I realize that for every winner, there is a loser, so others are having the exact opposite experience, but nothing about that is normal, healthy, or desirable. It is scary.