Silver Squeeze?

Copper is skyrocketing but silver is flat. Sorry but that doesn't make any fundamental sense. I think Sprott might hold more physical silver than the COMEX right now.

New update from Sprott teasing a Gold squeeze

Thank you for the link. The big banks are probably still buying physical gold. I had no idea they hoarded so much of it last year.
 
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NoMoreTO

Ostrich
Could this mean that the big banks are still buying physical silver and gold?

Somebody is taking delivery. Massive deliveries but the price really hasn't bumped that much. It makes sense from the "financial reset" perspective, if you're going to knock over a FIAT system, you take all the gold first, then knock over the FIAT. Craig Hemke is one of my favourite guys to listen follow.
Be sure to note a couple of things:

  1. The total for 2020 exceeded the previous five years of COMEX deliveries...COMBINED!
  2. The run rate thus far in 2021 projects a total this year that will match or exceed 2020.

On another note, the difference between a silver/gold 1oz round vs. a coin. I heard recently that when a coin has a dollar value assigned to it "30 Dollars", this means that it can actually be used as legal tender in a transaction, so can actually be used in contracts so to speak. On the other side it would be illegal to melt it down.
 
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bucky

Ostrich
Just checked the price for the first time in a few days. Signs of life? Already beating @MRAll134 's projection of maybe 26.50 this year (I jest with you, MRA). Would definitely be something if silver were to actually go somewhere along with what's currently happening in crypto.

Isn't all hell supposed to break loose and usher in a golden age if it goes over 30 USD? Or something to that effect.
 

C-Note

Hummingbird
Gold Member
On another note, the difference between a silver/gold 1oz round vs. a coin. I heard recently that when a coin has a dollar value assigned to it "30 Dollars", this means that it can actually be used as legal tender in a transaction, so can actually be used in contracts so to speak. On the other side it would be illegal to melt it down.
When I worked as a cashier in a convenience store, every once in awhile (maybe once a month) a customer would use a silver bullion coin to buy something. They usually seemed completely unaware that they were using a $1 coin that was actually valued at whatever an ounce of silver was valued at at that time. After they left the store, I would take a dollar out of my wallet and exchange it for the coin in the cash register and take it home.

Also, I would watch for silver quarters and dimes and wheat pennies and do the same thing. I was slowly gathering quite a collection but they all ended up being lost during the chaos surrounding some family moves. It probably wasn't that much in value anyway, maybe a few hundred dollars. This was back in the 90s. I imagine that it's much more uncommon now for silver coins and copper pennies to show up in store cash registers as they've likely all been collected-out or discarded by the federal reserves.
 

bucky

Ostrich
When I worked as a cashier in a convenience store, every once in awhile (maybe once a month) a customer would use a silver bullion coin to buy something. They usually seemed completely unaware that they were using a $1 coin that was actually valued at whatever an ounce of silver was valued at at that time. After they left the store, I would take a dollar out of my wallet and exchange it for the coin in the cash register and take it home.

Also, I would watch for silver quarters and dimes and wheat pennies and do the same thing. I was slowly gathering quite a collection but they all ended up being lost during the chaos surrounding some family moves. It probably wasn't that much in value anyway, maybe a few hundred dollars. This was back in the 90s. I imagine that it's much more uncommon now for silver coins and copper pennies to show up in store cash registers as they've likely all been collected-out or discarded by the federal reserves.
Interesting. My sister found a few silver coins in her change a few years ago, the only time in the last 20 years I've been aware of anyone finding a silver coin in change. I offered to buy them from her for fair value, but she forgot about it and spent them. My guess would be that some kid swiped them from his dad's coin collection at some point, not that they had actually been in circulation since 1964. I had no idea that anyone ever spends modern silver Eagles for face value, but I'd guess those were stolen or inherited too.

As an aside, I've recently thought that prohibitions on melting would be a reason for Americans to NOT buy Eagles and rather buy bullion from other countries. I don't imagine it's illegal to melt Maple Leafs, Philharmonics, and other foreign bullion.
 

C-Note

Hummingbird
Gold Member
My guess would be that some kid swiped them from his dad's coin collection at some point, not that they had actually been in circulation since 1964. I had no idea that anyone ever spends modern silver Eagles for face value, but I'd guess those were stolen or inherited too.
The theory I've heard that I give the most credence to is that back in the 60s, 70s, 80s, and early 90s, when people still used a lot of coins for daily transactions, they would often keep a coin jar somewhere in their house. When they would go to the store and needed some change, they would grab a handful of coins from the jar as they went out the door, then deposit their pocket change back in the jar when they returned. Since some of those jars had been sitting in the house for years, perhaps decades, they often had some silver coins (quarters, dimes, half-dollars, and non-Susan B. Anthony dollars) at the bottom that would eventually get grabbed and used.

As far as the bullion coins, I assumed that some people had them laying around for whatever reason, perhaps because they inherited them from a passed-away relative, and weren't aware that they had any value beyond the face value.
 

NoMoreTO

Ostrich
When I worked as a cashier in a convenience store, every once in awhile (maybe once a month) a customer would use a silver bullion coin to buy something. They usually seemed completely unaware that they were using a $1 coin that was actually valued at whatever an ounce of silver was valued at at that time. After they left the store, I would take a dollar out of my wallet and exchange it for the coin in the cash register and take it home.

Also, I would watch for silver quarters and dimes and wheat pennies and do the same thing. I was slowly gathering quite a collection but they all ended up being lost during the chaos surrounding some family moves. It probably wasn't that much in value anyway, maybe a few hundred dollars. This was back in the 90s. I imagine that it's much more uncommon now for silver coins and copper pennies to show up in store cash registers as they've likely all been collected-out or discarded by the federal reserves.

I heard this happened at a local bank.

Someone brought in 10 silver dollars and the bank gave her $10.
 

bucky

Ostrich
I heard this happened at a local bank.

Someone brought in 10 silver dollars and the bank gave her $10.
Although maybe they were Eisenhowers?

Otherwise, yes, amazing that people wouldn't be aware of the value of silver vs. copper-nickle coins. I've read that in 1964 the government assured everyone that there really wouldn't be much of a difference in value but of course the silver coins almost entirely disappeared from circulation immediately. Kind of the crypto of its day if you think about it. Imagine what a half closet full of dimes and quarters from 1964 would be worth today.
 

MRAll134

Pelican
I don't imagine it's illegal to melt Maple Leafs, Philharmonics, and other foreign bullion.
Maple Leafs are considered "legal tender" and cannot be melted. From the Gov. of Canada website:

Melting Coins
Marginal note: Melting down coins

11 (1) No person shall, except in accordance with a licence granted by the Minister, melt down, break up or use otherwise than as currency any coin that is current and legal tender in Canada.

Source: https://laws-lois.justice.gc.ca/eng/acts/c-52/page-1.html

"The Silver Maple Leaf is legal tender."

Source: https://en.wikipedia.org/wiki/Canadian_Silver_Maple_Leaf
 

bucky

Ostrich
Maple Leafs are considered "legal tender" and cannot be melted. From the Gov. of Canada website:

Melting Coins
Marginal note: Melting down coins

11 (1) No person shall, except in accordance with a licence granted by the Minister, melt down, break up or use otherwise than as currency any coin that is current and legal tender in Canada.

Source: https://laws-lois.justice.gc.ca/eng/acts/c-52/page-1.html

"The Silver Maple Leaf is legal tender."

Source: https://en.wikipedia.org/wiki/Canadian_Silver_Maple_Leaf
I meant it's probably legal to melt Maple Leafs in the US. I imagine you guys can melt Eagles up North too, for example.
 
Over the last three days—Thursday, May 6; Friday, May 7; Monday, May 10—some of the most fundamentally bullish news of the year hit the COMEX gold market. Inflation is soaring. Real interest rates are plunging. Wages are increasing and stagflation is pending. All of this combined to surge Speculator interest in COMEX gold. Hedge funds, institutions, and traders all sought COMEX gold price exposure, and price rose $55 over those three days.

But that doesn't tell the whole story.

Over those same three days, the market-making Banks created and added a total of 45,858 new COMEX gold contracts. The deep-pocketed Banks took the short side of these contracts and sold them to the aforementioned Speculators, who took the long side of the trade.

So let's first stop here and ponder just how far price might have risen without these additional contracts diluting the available supply. Yes, a $55 rally is nice, but how far might price have risen if sellers of existing contracts were needed to be found in order to meet the Spec demand? $105? $155? It's impossible to say.

But next let's think about the scam and fraud of all this. The Banks created "gold" from nothing and sold it to Speculators who bought this "gold" by only putting 15% down (margin). No physical gold ever changed hands, and no physical gold entered the COMEX warehouses as collateral for the new shorts. Instead it's just one side making a bet against the other, and one side has monopolistic control of the "market" and the too-big-to-fail deep pockets needed to guard against margin calls.

The result is what we've seen literally hundreds of times before. Price spikes. The Banks control the rally through new contract issuance, and total open interest rises. Price is capped. Buying exhaustion follows. Banks initiate a price raid. Price plunges as jittery Specs begin to liquidate. Banks use Spec selling to buy back and cover the shorts they had created on the run up, and total open interest declines.

The cojones on these Sprott guys. Precious metals buyers are basically revolutionaries.
 

Eusebius Erasmus

Pelican
Orthodox
Somebody is taking delivery. Massive deliveries but the price really hasn't bumped that much. It makes sense from the "financial reset" perspective, if you're going to knock over a FIAT system, you take all the gold first, then knock over the FIAT. Craig Hemke is one of my favourite guys to listen follow.


On another note, the difference between a silver/gold 1oz round vs. a coin. I heard recently that when a coin has a dollar value assigned to it "30 Dollars", this means that it can actually be used as legal tender in a transaction, so can actually be used in contracts so to speak. On the other side it would be illegal to melt it down.

I bet the elite are also buying up Crypto so that they can engineer its crash. They'll just dump it all and make away with the profits.

Most people don't hold crypto in cold storage wallets, which is IMO the only correct way to do it. Anything else is asking for trouble.
 
Silver and Gold are about the only thing out there that are relatively cheap.

I can't speak to crypto, because it is just getting started and doesn't have history.

Everything we see happening, to me if you're not getting the vax, then you'll want to have something outside the system.
True. Stocks and real estate are very much overpriced at the moment. Silver ETFs and the like should be forbidden, as they allow for the fractional ownership of physical silver, allowing the market to be manipulated by "paper silver". Total BS.
 
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