Jump to content

Silver


The_Muns

Recommended Posts

  • Replies 756
  • Created
  • Last Reply

Top Posters In This Topic

Think it may be all over.

Most of the silver plays have now come back.

The main issue is that the biggest manipulator (i.e. shorter) of the silver market, J.P. Morgan, has almost unlimited supplies of Silver at its disposal to satisfy the short squeeze. People can buy the rights for delivery at high prices, and JPM can deliver, and make a squillion bucks in the process.

While the CFTC allows the big boys to write contracts for tens of times the global supply, they will win.

And I cant see that changing anytime soon.

There is suspicion that either the Fed or the Treasury or both are the counterparty to so many of these knock the price down contracts.

This allows the bastards at JPM to put their hands on their hearts and say that they do not engage in creation of contracts to control the price, but that every contract they enter into is for a "customer". And it allows the FED/Treasury to control prices in a so called free market. If the people thought that Gold and or silver were going up due to inflationary pressures, it might things intolerable for the FED/Treasruy.

Mick

Link to comment
Share on other sites

Here is a better explanation of the differences between Gameplay and SIlver.

From Kitco

The silver market is seeing a historic run with price pushing to an eight-year high as organized retail investors buy the precious metal en masse; however, some analysts note that the surging price action might not be sustainable.

 

In a report published on Monday, Bernard Dahdah, precious metals analyst at Natixis said that the new interest in silver could harm the precious metal ’s long-term potential. While the silver is holding on to strong gains Monday, the market is well off its highs above $30 an ounce. March silver futures last traded at $29.04 an ounce, up nearly 8% on the day.

 

Dahdah noted that there are a lot of misconceptions as retail investors, organized through social media, try to force the silver price higher. He added that unlike some stocks that were targeted last week, the silver market does not have a significant short position.

 

“There is a misunderstanding from the proponents on Reddit that the bullion banks are outright short, when in reality they are only trading the spread. There are two risks that the bullion banks face, but which retail investors can ’t reasonably influence: 1) Dollar funding issues 2) physical delivery problems. he said. “Banks will make a profit from commissions taken on processing the requests of physically-backed ETFs (ironically those attacking them are indirectly handing them their own money), hedging the mining companies and a general uptick in business on the back of volatility.â€

 

Dahdah added that the fallout from higher silver prices is that the CME might be forced to raise its margins for the precious metal. This move could force some investors out of the marketplace, he added.

 

“In 2011, when silver prices rallied, initial and maintenance requirements at the CME rose by 84% in eight days. This, in turn, led to a 20% drop in silver prices as some speculators were unable or unwilling to bear the costs of holding positions,†he said.

Lots of people have already gone broke in the past trying to unload on the bullion banks.

Can't see how this one will be any different.

Mick

Link to comment
Share on other sites

  • 2 weeks later...

Just follow up on the failed Silver short squeeze.

Next time the kids at WSB decide they are going after something, they may think twice about telegraphing their intentions.

After effectively telling everyone that they were going after the short squeeze on Silver, it comes as no surprise that the COT reports show that the big bullion banks added an astounding 6,672 new short contracts for 33.4 million ounces ounces) in the same week that the squeeze started. Talk about contempt for for your "opponents".

There is still big markups on physical in the form of small bars and coins.

However, you would think that bullion companies would be keen buyers to retail back to the punters.

However, the mark up is one way

With the spot price of silver at$35.93 an ounce,

ABC Bullion are selling 1 OZ silver rat coins at $56.29., quite a markup, even allowing for the costs of manufacturing the coins.

However, if you have one to sell to them, they are only offering #33.13, a staggering margin of $23.16, or over %41 under the sell price.

A 5kg silver bar will set you back $6,137.88, which surprisngly is equivalent to $34.84 an ounce, a 3% discount to spot.

However, if you were to turn around nd sell it back to them , the offer price is$4,991.33, $1136.55 or around18% discount.

But the all of these pale into insignificance compared to the 1oz PAMP minted silver bar which retails at almost twice the spot price of silver at $70.35.

However, to sell it back to them you will get a mere #33.17.

That's a 100% markdown kids.

Nice work if you can get it.

Is it surprising that folks shun physical for paper trades and ETF's etc.

Mick

Link to comment
Share on other sites

  • 7 months later...

eb,

keep think of silver, i am stubborn

.... it may be worth revisiting the posts by Mick in this thread, especially early Feb.

 

The only thing I watch is ETPMAG and that is going nowhere since the mid 2020 jump (except down).

Link to comment
Share on other sites

  • 1 month later...

Silver ; The Forgotten Precious Metal

https://www.sharecafe.com.au/2021/11/25/silver-the-forgotten-precious-metal/

The Silver Institute said that silver demand had seen broad-based growth through 2021, with industrial demand leading the way.

The recovery in silver industrial demand from the pandemic will see this segment achieve a new high of 524 million ounces (Moz). In terms of some of the key segments, we estimate that photovoltaic demand will rise by 13% to over 110 Moz, a new high and highlighting silvers key role in the green economy, said analysts at Metals Focus, who conducted the latest research on behalf of the Silver Institute.

The report also noted solid investment demand with interest in physical bullion expected to increase 34% or by 64 million ounces to 263 million ounces, representing a six year high.

Growth began with the social media buying frenzy before spreading to more traditional silver investors. Indian demand reflects improved sentiment towards the silver price and a recovering economy. Overall, physical investment in India is forecast to surge almost three fold this year, having collapsed in 2020, the analysts said.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×
×
  • Create New...