Silver Squeeze?

NoMoreTO

Ostrich
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.

Yes. It's alchemy.

An allocated fund avoids this, but there is still counterparty risk.
 
True. I would still prefer to have my silver right there where I can see it.
Why not get that Silver?

raw
 

NoMoreTO

Ostrich
It'll be great until the government needs your silver, and then it becomes their silver, and you're back to eating out of tin cans around a hobo fire.

This is unlikely. Yes, it could happen, but in that event you could always just bury it. While there was a law in the great depression to confiscate gold, I think there was only one actual case where the government went to someones house, and then they lost the court case.

More likely is that the government will raise FIAT price of silver so that holders willingly bring it in. Another possibility would be

Other government options, all at the flick of a switch
- Halting the sale of silver from their own mints to ensure production goes to green industrial use.
- Confiscation and delivery limits on Silver held in PSLV or "above board" silver that is already inventoried
- Making possession of silver, gold, bitcoin illegal
- Property taxes can be raised with a quick re assessment of property value
- FIAT money in your bank can be frozen and used for a "Bale In"
 
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NoMoreTO

Ostrich
Silver is looking strong again. I wish I had more firepower when the price went down recently.

David Morgan is a voice I have learned to trust in the last 6 months. He has been in the game for 40 years.

Alot of talk about the currency reset of the arrogant bankers that might be in the works, and how silver is the safe haven.

 

NoMoreTO

Ostrich

Silver Report Uncut: The US Mint Halts Sales Citing the “Global Silver Shortage”​

In the interest of properly rectifying the situation, the Mint is postponing the pre-order windows for the remaining 2021 Morgan and Peace silver dollars that were originally scheduled for June 1 (Morgan Dollars struck at Denver (21XG) and San Francisco (21XF)) and June 7 (Morgan Dollar struck at Philadelphia (21XE) and the Peace Dollar (21XH)).

Article


 

NoMoreTO

Ostrich
Still a vast amount of silver easily available on eBay. Premiums are very high, around 35 USD an ounce on average at a glance, but there still seems to be plenty available.

Yes, but the spot price doesn't move. Normally price corrects for shortages, big money is taking delivery and loading up. The silver squeeze will happen when the mints have a major issue, and large institutions take delivery en masse. This is what happened with the hunt brothers, except it was just the hunt brothers taking delivery.
 

NoMoreTO

Ostrich
I have noticed that the coins I used to pick-up on Ebay have gone up at least 33% over the last year or two. Everything looks good for silver, except for the price index.

But eventually that will crack. Could happen this month, or could be a long wait. But I don't mind waiting as the prices are still based on the spot somewhat, when the actual inventories get squeezed out things will fly like last summer in my opinion.

Granted this was during the 'squeeze' but other charts by year show something similar. Deliveries have ramped up well above historical since Corona March 2020

silver_deliveries.png

There is also a massive shift in money from SLV (unallocated, alchemy hypothecated synthetic silver) to PSLV (allocated physical silver held in Canadian Mint)
 
Yes, but the spot price doesn't move. Normally price corrects for shortages, big money is taking delivery and loading up. The silver squeeze will happen when the mints have a major issue, and large institutions take delivery en masse. This is what happened with the hunt brothers, except it was just the hunt brothers taking delivery.

The Hunt's brothers leveraged to the Hilt so they were vulnerable to a Margin Call.
 

NoMoreTO

Ostrich
The Hunt's brothers leveraged to the Hilt so they were vulnerable to a Margin Call.

Yes. The fact that the squeeze is widely held, physically held, and any leverage spread across the board is a big help. You can't beat the financiers when you're tied in with them, as the Hunt Brothers found out. I think the actual COMEX changed the rules on them also, not sure. It's a complicated story, but they were knocked down a peg. Something to keep in mind if/when things go wild, to remember to unload some and take profits. Myself I'll be unloading my PSLV around $45 US Spot, and then holding what I can.

My stack, well I feel a little more attachment to it.
 
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zoom

Kingfisher
Gold Member
The dividend yields on some these mining stocks are quite high at the moment:

NEM- 4.05%

AEM- 2.51%

GOLD- 1.93%

KGC- 1.93%


Full disclosure: I own AEM and KGC.

I was just wanted to provide an update. I'm no longer invested in gold and silver miners. The valuations are high compared to the risk you take in owning them. A lot of the mines are located in jurisdictions such Mexico, Peru, Argentina, Africa. Those regions/countries have a lot of political risk. In addition, a lot of the mining companies have surprisingly liberal social policies. Just read any companies' sustainability report. They are all available online.

With that being said, these stocks will likely do very well if the price of gold and silver increase.
 

C-Note

Hummingbird
Gold Member
I was just wanted to provide an update. I'm no longer invested in gold and silver miners. The valuations are high compared to the risk you take in owning them. A lot of the mines are located in jurisdictions such Mexico, Peru, Argentina, Africa. Those regions/countries have a lot of political risk. In addition, a lot of the mining companies have surprisingly liberal social policies. Just read any companies' sustainability report. They are all available online.

With that being said, these stocks will likely do very well if the price of gold and silver increase.

As we've seen over the last month or so, mining stocks are very sensitive to price changes in their underlying metals. The price of silver went down by $2 over the past month, which is about a 7% decline, but silver mining stocks have generally gone down 25-50% in response. There was a similar reaction with gold mining stocks, even though the price of gold has almost returned to what it was over a month ago.

There is a lot of risk in mining stocks, as you say. As far as their kowtowing to the green weenies, I don't really blame them. Most mining companies are headquartered in countries in which leftist enviro-fanatics are in charge, such as Canada. So, to avoid regulation, they feel they have to bend the knee. Dealing with the vagaries of the metals commodities markets is risky enough as it is without having to fend off inquisitions from Big Brother.
 

zoom

Kingfisher
Gold Member
As we've seen over the last month or so, mining stocks are very sensitive to price changes in their underlying metals. The price of silver went down by $2 over the past month, which is about a 7% decline, but silver mining stocks have generally gone down 25-50% in response. There was a similar reaction with gold mining stocks, even though the price of gold has almost returned to what it was over a month ago.

There is a lot of risk in mining stocks, as you say. As far as their kowtowing to the green weenies, I don't really blame them. Most mining companies are headquartered in countries in which leftist enviro-fanatics are in charge, such as Canada. So, to avoid regulation, they feel they have to bend the knee. Dealing with the vagaries of the metals commodities markets is risky enough as it is without having to fend off inquisitions from Big Brother.

Now seems like a good entry point for gold and silver mining stocks. Of course the prices could drop further.

As far as liberal corporate policies, it's done to attract more investment by being ESG compliant. Here's a good video that explains how ESG is controlling the agenda:

 

Eusebius Erasmus

Pelican
Orthodox
Now seems like a good entry point for gold and silver mining stocks. Of course the prices could drop further.

As far as liberal corporate policies, it's done to attract more investment by being ESG compliant. Here's a good video that explains how ESG is controlling the agenda:


The question is where the ESG originates. A good study is required on this.

I suspect that as the Leftist anti-corporate movement grew, and culminated in the Seattle Protests of 1999, the corporations panicked, and decided that they should co-opt Leftism through ESG. This allows them to control the Left.
 

C-Note

Hummingbird
Gold Member
I was doing some due diligence on Alamos Gold (AGI) today and was impressed by how well they seem to have made their deep underground mining as efficient as possible. I suggest watching the video presentation on their Young-Davidson Mine, which is located at the bottom of this page and called "Lower Mine Expansion:"


Most of their ore harvesting in the mine now takes place at depths up to 4,500 feet below the surface. They use remote-controlled tractors to carry the ore to rock crushers, which have been built at that depth. Then, two lifts carry the crushed rock to the surface to complete the processing to produce the raw gold. They built 600-meter-long tunnels to connect the mining scopes to the vertical lift shafts. As you can see in the video, the ore elevators lift the rock all the way to the surface, several tons at a time. I guess that means that when they built the lifts, they had workers installing tracks, guidelines, and supports while suspended above a hole that was over 4,000 feet deep!

Apparently, they also use the lifts to transport workers and equipment down to the lowest levels of the mine. Imagine riding an elevator down over 4,000 feet without stopping. Miners must have nerves of steel. The mine operates 24-hours a day, 7 days a week with 350 employees, who work 10 1/2 shifts, five days on, then four days off, then four days on, then five days off, then repeat.
 
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