Posted on 02/07/2021 1:49:48 PM PST by delta7
In the last year things have changed, and the big shorts have found themselves unable to buy back their short position as they had in the past. In addition, JPMorgan, the ringleader of the big shorts, reversed gears and eliminated its short position in silver and gold. As gold and silver rose in price, the losses of the 8 big shorts began to mount and at years end totaled $14 billion. In the last few days, the picture for the big shorts has darkened even further. On January 20th, a 20-million-ounce silver deposit was made in the SLV. Following the explosion in trading volume of 150 million shares in SLV on Thursday (the most in my memory) a 34-million-ounce deposit came in. Friday’s 110 million share volume leads me to believe that total net purchases in the SLV for both days was 50 million ounces and a considerable remainder is still due to be deposited in SLV.
If such a large percentage of available silver in thousand-ounce bar form has been purchased, why has the price not exploded? The big shorts are selling new SLV shares. In other word, they are shorting additional silver to keep the price down and prevent a price run on silver. To make matters worse, they are borrowing or leasing the silver to deposit in SLV which is in effect another short since that silver must be paid back. The authorized participants doing this in SLV are no doubt connected to the 4 big shorts on the COMEX. The only reason they would sell so aggressively at such low prices and further compound their position by borrowing physical silver at such low prices is to prevent the SLV price from rising....
(Excerpt) Read more at silverseek.com ...
Good news for them that are holding it, especially if in physical form.
The SEC should outlaw short selling.
The market should be for investing on the buyer side and to raise capital on the seller side.
Short selling is in the same category as betting on the horse races or a chicken fight.
I have 3600 oz in 100 oz bars I bought a dozen years ago at $11.00/oz. Keeping fingers crossed.
First phase is being witnessed- $10 over spot silver price-US Silver Eagles sold out at every internet supplier, latest price for a ASE is $38 apiece, spot is about $27 oz. Hold tight everyone, it will take more time for producers, mints, and refiners to take delivery and clean out the Comex. For those unaware, our Comex sets the price and is regularly shorted in the market by half a years of worlds supply in PAPER contracts. Buy and hold physical...just ask the EU member nations were they place a 40 percent tax on silver when buying, or better yet, ask Argentinians, Braziiians and Venezuelans what their silver buys today.
At a minimum, outlaw businesses from shorting more stock than what exists. (Gamestop involved 140% shorted ...)
Reuters excerpt:
Kevin Rich, global gold market adviser for Australia’s Perth Mint, said that while dealers of coins and bars might see some supply constraints and therefore charge higher premiums on these products, the Mint does not anticipate any such issues.
There is enough airline traffic to ensure supply can move around, he said, unlike last year when the lack of freight capacity disrupted gold markets.
“In the short term, stocks may run out since it takes a long time for sea shipping, but overall supply is ample,” said Peter Fung, head of dealing at Hong Kong-based Wing Fung Precious Metals.
Around 1 billion ounces of silver are produced and consumed each year, and supply has been in surplus for most of the last decade, consultants Metals Focus said.
“There are no signs yet of a broader physical squeeze across silver and we would not expect any at this stage,” said Frederic Panizzutti, managing director at dealer MKS.]
Good for you...
Very smart!
bookmark
One warning, those buying to “get rich”, don’t. PMs are bought to store your wealth. One millionaire once told me, “paper dollars are for spending, gold and silver is for wealth storage”...it rings true today, in 2001, gold was $260 oz, silver was $3.50 and oz. Today, PMs are : US gold Eagles $2000 apiece, US silver Eagles $38 apiece. Imagine what it would be without years of manipulation.
Palladium is getting some street cred.
https://www.theguardian.com/business/nils-pratley-on-finance/2021/feb/01/reddits-flash-mob-wont-be-able-to-work-the-gamestop-magic-on-silver
[Indeed, even the short positions won’t always be what they seem. Some will have been created for reasons of genuine hedging. If, for example, you’re a big investor in Fresnillo, the FTSE 100 silver miner, you might maintain a short position in silver as a way to hedge out market risk. Such a hedge would have done its job on Monday: the pain of a 10% rise in the price of silver was matched by the relief of a big gain in Fresnillo’s share price. So who is hurting?
Then one has to consider the size of the silver market. GameStop was a struggling video games retailer worth $1.5bn at the start of the year. By contrast, the value of the silver market is more like $1.5tn, so it’s hard to sustain the same market-moving momentum. Real-world manufacturers need silver for use in cars and computers, but they also keep stocks of the stuff. So they do not become forced buyers overnight, unlike the hedge funds at Gamestop, who stupidly made the same overcrowded bet.
Monday’s dramatic surge in the silver is not to be sniffed at. It was a significant move. But was it just small-time investors buying? Or were hedge funds, or others, enjoying some sport by anticipating the Redditors’s intentions (which were advertised since last week) and adding a bit of speculative money in an attempt to catch a pop in the price? If so, one suspects the professionals will have banked their profits already.
That’s the worry about “meme” investing. It creates short-term trading opportunities for those who can read, and create, social media forces. But the likely losers are who get sucked in and arrive late. Silver was an odd target to pick, especially with the price now at an eight-year high. It’s a case of frothy market and frothy thinking.]
There is actually a free-market reason to support short-selling, which is to provide a financial incentive for analysts to sniff out fraud. That said, naked short selling is itself a kind of fraud and should certainly be outlawed. A different kind of fraud is the multiple rehypothecation that takes place in the futures market which allows tens or even hundreds of claims to be made on the same ounces of silver or gold - and which allows a year’s worth of annual production to be sold in a day, or even in 5 minutes.
Governments have been guilty of PM suppression- I remember when the Bank of England lost billions of their gold to flood the market fearing a gold rush, confirmed years later.
“ Quote from Eddie George, Governor Bank of England in 1999, when BoE dropped 400 tones of Gold, 50% of the BoE’s gold on the market:
“We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake. Therefore at any price, at any cost, the central banks had to quell the gold price, manage it. It was very difficult to get the gold price under control but we have now succeeded. The US Fed was very active in getting the gold price down. So was the U.K.”
To stay current, visit the legendary gold traders site:
Www.jsmineset.com
I think there’s a deliberate democratization of investment and people flooding into alternative investments. Hence Bitcoin soaring ... and Dogecoin approaching a dollar.
I remember when I could buy palladium coins at $4 apiece...keep in mind it is an industrial metal, used mostly for gasoline engine catalytic converters. platinum is now used for Diesel engine converters. Palladium was developed heavily for converters because of platinum’s cost. The two flipped roles due to price.
[One warning, those buying to “get rich”, don’t. PMs are bought to store your wealth. One millionaire once told me, “paper dollars are for spending, gold and silver is for wealth storage”...it rings true today, in 2001, gold was $260 oz, silver was $3.50 and oz. Today, PMs are : US gold Eagles $2000 apiece, US silver Eagles $38 apiece. Imagine what it would be without years of manipulation.]
And rigging the race/fight.
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