Posted on 01/30/2021 10:05:16 PM PST by Technocrat
APMEX prices started rising by the minute two hours ago and they are now out of stock on all significant silver coins. Available rounds if you can find them are now priced at double to triple the spot price. A coordinated attack against JP Morgan and other silver market manipulators was proposed on Reddit on Friday. The link above goes to junk silver.
The action now appears to be spreading to Gold somewhat
If you don’t exit the position, you will get a call about delivery.
Now commodity guys are often LOOKING to have the delivery. That is the point. But what gets interesting is sometimes a “paper trader” gets stuck. Remember the negative oil prices? They had to take delivery, but were full. So they paid storage costs that were higher than the contract.
Which isn’t a big deal of you need to commodity and will add value beyond it.
My grandpa and Dad traded commodities as farmers, and I have in chemicals.
But that was in physical, deliverable stuff.
Playing paper in commodities is a great way to lose everything. No idea what is going to happen in silver (not my field) but one thing the reddit guys need to remember is there is a stated and defined amount of a stock.
No one is really sure how much silver there is. If it gets high enough, a lot of the “junk” stuff will flood the market.
High rewards for this type of ‘trading’, but also lots of risk. For very person you hear making a fortune, hundreds lost money.
Safe investing usually pays off, but even then people get wiped out.
Junk meaning actual circulated coins, or other junk?
I’ve invested by having no debt, that’s my limit! ha
All stocks get shorted, legally, but what the Reddit Raiders did was to find the stocks most heavily illegally shorted so that the Raiders could do the most damage to those criminal institutions. I support them, and will probably participate. I’ll sacrifice some money to this, maybe make some money, but I, of course, won’t sacrifice the rent money doing so. It will be disposable cash that is involved.
Amen. Too bad they have unbreakable windows up high on Wall Street. I’d pay to see the launches and landings.
So, are you going to cash out?
(No worries if you prefer not to say ;)
Aha, now it’s getting clear what they’re doing.
Basically I type of warfare.
Warfare. Yes. Exactly.
No debt is usually far better than the debt people carry to “invest’.
We are reasonably debt free, but there are investment reasons to carry a mortgage.
If you want to invest, own things: Real estate, companies, those sorts of things.
Silver that only has value as silver. No like my Roman coins, which have a bit higher value than that to most and a lot more to me
Well I don’t know about that but my wife may have been spot on when she convinced me not to get on this particular train
It did occur to me that someone could exploit this reddit style bum rush on a stock as a false flag. But as long as the investment thesis is well explained and openly vetted by 1000s of others, its validity can be analyzed. In the grand scheme, $1.3 billion in silver is not all that much. And not all that much for Citadel. Citadel loaned that large GME short more than that to bail him out.
oh hell yeah
Supposedly there are 10kg of silver in every Tesla.
Yeah, you’re blowing smoke now.
The spike will be by (if they know enough of what they’re doing and aren’t distracted by catcalls to stay with GME, spread into other shorts, or enter into contracts on paper) insisting on physical delivery in the near term.
The increase in production is not always certain nor rapid, as it takes time to ramp up new (by definition, of marginal profitability) sources; and then of course there’s the problem of, once the price goes down, they’re operating at a loss again.
The problem is that the spike in demand is not a secular trend, the way demand for fossil fuels are. Tesla and industrial uses of silver notwithstanding.
And who exactly is going to do that?
No.
If things get crazy ( $100 or more an ounce ), I’d sell a few bullion rounds to support a good night on the town for Mrs. Snooter & I. Almost all of my precious metal holdings are for looooooooooong term. Especially the numismatic (collector) stuff. Hope this answered your question !
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