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Silver, Discussion
mullokintyre
post Posted: Feb 10 2021, 05:17 PM
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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



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mullokintyre
post Posted: Feb 2 2021, 03:08 PM
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Here is a better explanation of the differences between Gameplay and SIlver.
From Kitco
QUOTE
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.”

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



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nipper
post Posted: Feb 2 2021, 10:39 AM
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In Reply To: mullokintyre's post @ Feb 2 2021, 10:17 AM

Well articulated. Thanks


(not my sort of party. Stayed well away)



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
mullokintyre
post Posted: Feb 2 2021, 10:17 AM
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In Reply To: nipper's post @ Feb 2 2021, 08:56 AM

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



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nipper
post Posted: Feb 2 2021, 08:56 AM
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https://smallcaps.com.au/australian-silver-...g-metal-supply/





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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
mullokintyre
post Posted: Feb 2 2021, 07:13 AM
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The spot price for silver in AUD this morning is $37.25.
However, if you check with OZ bullion companies, they are quoting much higher retail figures.
For instance, ABC bullion quotes a 10OZ bar at $433.530, oor 43.30 per ounce, assuming you can get some.
There is a shortage of smaller coins. small bars etc at the physical. so it is adding a $6 premium to the spot price for retail.
This shortage is not demonstrated in the larger Physical bars- 1 kg or 1/2 kg, at least not yet.
The way people are buying physical in big quantities might suggest large investment grade bars will become in short supply.
The mount of paper trades in silver far outweighs annual production, so a little bit of momentum can swing it either way.
Might be some run in Silver yet!
Mick



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nipper
post Posted: Feb 1 2021, 01:31 PM
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In Reply To: cooderman's post @ Feb 1 2021, 10:18 AM

ETPMAG up nearly 10%



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
cooderman
post Posted: Feb 1 2021, 10:18 AM
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QUOTE
  • Silver began February with an upside gap to the highest since September 2020.
  • Risks remain heavy amid fears of further restrictions on equity trading, EU-UK tussle.
  • Vaccine optimism, hopes of US stimulus probe silver buyers.
  • PMIs, risk news keep the driver’s seat, US dollar moves shouldn’t be missed.
Silver bulls attack $29.00, currently up 6.60% near $28.97, during the early Asian trading on Monday. The white metal marked the upside gap from $26.98 to $28.88 at the start of February’s trading.

Attached Image








 
mullokintyre
post Posted: Feb 1 2021, 10:07 AM
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Well, talk bout a rush.
TMZ, ARD and half my SVL all taken out on the match on the open.
Still got the cooking show ones, reckon there might still be more in them yet.
Mick



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mullokintyre
post Posted: Jan 31 2021, 07:42 AM
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Following on from the stunning short position obliteration activity in GME on wall street, there is some talk that Silver may follow in the same direction.
From Zero Hedge

QUOTE
While all eyes have been focused on GameStop and a handful of other heavily-shorted stocks as they exploded higher under continuous fire from WallStreetBets traders igniting a short-squeeze coinciding with a gamma-squeeze, the last few days saw another asset suddenly get in the crosshairs of the 'Reddit-Raiders' - Silver.

On Thursday, we asked "Is The Reddit Rebellion About To Descend On The Precious Metals Market?" ... One WallStreetBets user (jjalj30) posted the following last night:

Silver Bullion Market is one of the most manipulated on earth. Any short squeeze in silver paper shorts would be EPIC. We know billion banks are manipulating gold and silver to cover real inflation.

Both the industrial case and monetary case, debt printing has never been more favorable for the No. 1 inflation hedge Silver.

Inflation adjusted Silver should be at 1000$ instead of 25$. Link to post removed by mods.

Why not squeeze $SLV to real physical price.

Think about the Gainz. If you don't care about the gains, think about the banks like JP MORGAN you'd be destroying along the way.

...
Tldr- Corner the market. GV thinks its possible to squeeze $SLV, FUCK AFTER SEEING $AG AND $GME EVEN I THINK WE CAN DO IT. BUY $SLV GO ALL IN TH GAINZ WILL BE UNLIMITED. DEMAND PHYSICAL IF YOU CAN. FUCK THE BANKS.
Disclaimer: This is not Financial advice. I am not a financial services professional. This is my personal opinion and speculation as an uneducated and uninformed person.

...and judging by the unprecedented flows into the Silver ETF (SLV) they just got started...
SLV saw inflows of almost one billion dollars on Friday, almost double the previous record inflow for this 15 year-old ETF.

The link to the chart is HERE
The rest of the rather long article goes on to quote some of the reddit users and the call to arms of the next big squeese.
I guess this explains the nearly $ increase in Silver prices since last Thursday.
The problem with Reddit etc, is that its anonymous, could just as easily be the same con men and spivs that inhabit the hedge funds pretending to be the milenial warriors sucking money out of the unsuspecting.
I hope that indeed this is another real short squeeze and that they succeed for two reasons.
1. I will benefit financially is a significant way.
2. It will be another dagger into the cold hearts of the greedy instos.
Mick




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