Digging Deeper …
by Justin Angell
I guess we can open this column with a silver update. In November I expressed my belief that gold and silver would be rising exponentially higher soon. In December 2025, I explained in depth why silver prices were about to explode higher. We’ve now gotten to a point where I believe physical silver price can still run much higher, but now I am not comfortable trusting the COMEX financial system.
With silver prices now over $90 an ounce, many pundits and YouTubers are predicting much higher silver prices in the future, pushed mostly by industrial demand for a scarce metal. I don’t disagree with the much higher prices for real silver that you can hold in your hand. What I have a problem with is the COMEX Silver Rule number 7. Basically, that’s the rule that was implemented to protect the short positioned banks in 1980 as the Hunt Brothers successfully cornered the silver market. I’ve talked about this at length, so I won’t review history, but historically if the big bullion banks get on the wrong side of a big trade as they are now, the COMEX changes the rules.
This has happened most recently with nickel in 2022 — that rule change simply canceled all the long contracts. In 2016, Palladium was the victim of another rule change, but after being forced back lower, the price of palladium eventually rose 6X in four years.
Even as far back as 1997, Warren Buffett was able to buy contracts equaling 25% of the above ground supply of silver. I believe being faced with the potential of having his long contracts canceled, he magnanimously agreed to give the short positions extra time to fill delivery notices.
Rather than taking the chance of all my positive positions being canceled, I’m settling and ringing the register even though I think there is a tremendous amount of room on the upside. If you’re keeping track, I have exited all my paper long contracts and call positions. This is in no way investment advice.
I’m just talking about what I do, etc. etc. etc..
Again, the reason I spend time on metals, oil, etc., is because all derivative markets are at some point connected. I still believe there may be risk rising in all derivative markets because of this severe imbalance in the silver and gold derivatives markets that may eventually affect cattle futures.
I also believe that physical silver and gold, land, bitcoin, etc. will continue to be a good long-term investments with prices potentially traveling much higher as the purchasing value of our fiat currencies travels lower.
I was asked last week where the risk on opportunity was if not in the derivative markets, and so I pointed out that silver and gold miners are still being valued on $40-$50 silver and $3200 gold. Gold and silver mining companies are ramping up production and printing money as fast as they can. I think 2026 will prove these publicly traded companies, to be some of the most truly profitable companies on Wall Street (importantly, I am assuming their production is not hedged too low for too long… very important)
This is just a fascinating moment in time that I’ve been waiting for, for about 15 years. It will be interesting to see how events really play out.
In other news, Iran is having their Berlin moment. I can remember watching the TV news coverage when the residents of East and West Berlin tore down the wall that had divided them my entire lifetime (1961–1989).
The implosion of the Soviet Union and the freedom gained by the Iron Curtain countries is something until then I never thought that would ever be possible.
As I watch the events in Iran unfold, I have the same incredulous, hopeful feeling. Historically, Iran (known as Persia for most of it history) has been culturally, more European than Asian or African. Persians are historically bitter enemies of the Arabs. There will undoubtedly be months of turmoil, but right now Iran has a chance to shed the radical Muslim yolk and become a prosperous secular democracy once again. Time will tell.
Another bit of good news is that the Argentinians have repaid the $2 billion with interest the United States arranged for them to borrow months ago. Basically United States government set up a $20 billion line of credit to help Argentina stabilize Argentine peso.
Utilizing only $2 billion of this $20 billion line of credit, Javier Milei, the Argentine president, has astounded the world in his ability to turn that country away from its socialist history into a reforming capitalist country. Much of his success is a direct result of dismantling the overreaching national government.
Malay has used his popular support to eliminate whole departments from their federal government. Again, still a lot of turmoil down there, but I’m thinking I might like to go and visit Argentina. Seems like with another year of solid progress, Argentina may become a wonderful place for tourism and global investments.
Additionally on the international front, what can you say about Venezuela? Only Trump would have the moxie to order an international snatch and grab.
The most interesting part about the whole event to me is the firsthand account of a Venezuelan security survivor. The description of 20 American soldiers coming off undetected helicopters wearing some type of special uniforms with weapons that allowed them to shoot an estimated 200 rounds per minute with sniper accuracy. The survivor said there was also some type of debilitating sonic weapon that was so intense it made their heads feel like they’re going to explode resulting in bleeding from the nose, eyes and ears.
Within minutes, the 20 American special forces troops had dispatched 200 members of Maduro‘s personal guard including 32 Cuban bodyguards and exited unscathed with Maduro and his wife. The Americans suffered no loss of equipment no loss of life… In and out. In a word audacious.
This firsthand description by a surviving member of Maduro‘s bodyguard describing total battle scene domination by US special forces will go further in deterring miscreate misbehavior internationally than any carrier group.
And finally in international news, we find Greenland.
Bottom line… there will eventually be a deal rather than an invasion. The United States in the end may not own Greenland, but Trump will end up with what he thinks this country needs.
“Minnesota-stan” will continue to be a problem for ICE. I think eventually there will be some arrests of the radical paid protesters and their financiers.
One of those looking at jail time might be the former CNN journalist (struggling for relevance) Don Lemon. This will be as a result of the invasion of a church service and the intimidation by radical members against the Christian parishioners.
Ironically, the legal precedence are federal laws passed to curb activities, intimidations and violations of civil rights during the KKK era.
Laughable that Don Lemon would go to jail for activities, reminiscent of the KKK activities. Again, we’ll see how this works out.
That’s all I’ve got for this month. Beautiful sunshiny winter day awaits me. Carpe Diem