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.
 
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