WHY IS SILVER CRASHING? THIS is What Will Get Silver Turned Around!

Silver just CRASHED TO $53.  Vince Lanci explains THIS is what will turn silver prices around:

Our friend Vincent Lanci of GoldFix outlines two connected developments that help explain the recent weakness in silver and what could eventually reverse it.

Silver funds have sold about 2.2 billion dollars over the past three weeks, with fresh short positions dominating the flows according to a Goldman Sachs report. Lanci notes that these managed money accounts, largely driven by commodity trading advisors, tend to keep selling weakness until a catalyst forces them to stop.

“Silver funds have sold 2.2 billion in 3 weeks and we see no catalyst yet to force shorts to cover ahead of our expected mid November seasonal turn,” he says. Dollar weakness has failed to lift prices as demand indicators softened, and selling pressure is expected to continue into mid November while the market watches the 55 to 53 area for signs of a turn.

The second development offers a potential offset. India has approved imports of 6,500 tons of silver over six months despite soft domestic demand. The permits should ease local supply tightness and premiums, which fell sharply after the announcement. Dealers view the allocation as larger than immediate needs, and actual buying remains uncertain, but the timing coincides with the Diwali season.

Lanci describes the selling as mechanical rather than fundamental. CTAs act like trend followers that sell after declines and buy after rises, creating cascades when the market structure already favors shorts. “These are the opposite of investors. These are commodity trading advisors that are dominated by algorithmic,” he explains. The last sellers to enter often cover first once prices stop falling, which can start a snowball of short covering once a catalyst appears.

He points to seasonal factors and events such as Diwali as possible triggers that could shift the flow from selling to buying. Even without an explosive move, Lanci expects the decline to eventually stop and reverse. “Even if it doesn’t skyrocket, it’s going to stop going down and it’s going to go up,” he says, adding that holders should be content with solid long term returns rather than only explosive spikes.

The video frames the current pressure as driven by algorithmic selling into a market that already carries heavy short interest, with India’s import approval and upcoming seasonal patterns as the factors most likely to change the direction.