Commercial paper rates spiking

Banks are not wanting to lend out money anymore for the long term (3 months). 3 month minus Fed funds rate has spiked upwards.

Commercial paper Vs. Repo

Commercial paper rates are correlated with the amount of repurchase agreements bought by the Fed.
Whenever we see a rise in the {Commercial paper rate minus Fed funds rate}, the repurchases go up.

COMEX Paper Silver Leverage Alert

What we saw in gold at the COMEX is now spilling over to the silver side.

Remember this chart? The spike in paper gold leverage in January 2016 started the huge gold rally from January 2016 till now. Gold went up from $1050/ounce to $1300/ounce today.

 

Silver hasn't done anything yet, but I now see signs of the same thing happening on the silver side. Paper silver leverage is building a spike now. I predict that in the next few years, we will see silver spike upwards.

 

The huge inflows in the SLV ETF is confirming my suspicion. The funds know what will happen. As these funds gobble up all the silver, this will add to the silver deficit in the years to come. See red chart below: