The silver market is at a critical juncture, marked by a growing dislocation between the physical and paper markets. On July 11, no less than 483 million ounces were sold short in a single hour on the COMEX: {chart} This is equivalent to around 57% of the world's annual mine production - a spectacular attempt at downward pressure designed to curb a bullish breakout. But the operation backfired: prices rebounded above $37.50 an ounce, pushing these short positions into the red. The operators behind these massive sales may now be forced to hedge on a physical market already under pressure. At the same time, physical ... (full story)