With the Feb 1st deadline for Trump’s 25% tariffs on Canada and Mexico rapidly approaching, the bankster silver shorts are playing a game of chicken with the President. Their bet that the tariffs are not going to be implemented (at least not all at once) is probably the likely outcome.

However, if they think they can just wait out the threat and not start covering their large naked short positions, they are going to get squeezed. Trump is serious in using the tariff threat as a bargaining chip to negotiate a better trade deal but is unlikely to go 25% all at once. If their gamble appears to payoff come Monday morning if no, or only a small initial incremental tariff is implemented, silver will probably selloff at first.

I do feel that the dislocations in the physical silver market that may have been exacerbated by the tariff threat, are more a reflection of the growing shortage of silver as we enter the fifth year of an increasing deficit situation between production shortages and increasing demand. The banks can either slowly and steadily cover their shorts(taking losses) but still surviving, or they can stubbornly cling to their short positions and get destroyed, by the coming silver price tsunami.

The price action after any initial selloff on Monday, will be telling and interesting. February is usually a weak month for silver. It may start out that way, but don’t expect it to stay down for the entire month. This is exactly the kind of setup that could lead to the Silver Slingshot taking prices to and thru the $35+ high from late October.