Silver Squeeze?

zoom

Kingfisher
Gold Member
Traders are selling paper silver and silver contracts on the open market. The investment thesis has not changed.

As Rick Rule says, people mistake inevitable and imminent. Silver is poised to make new all time highs, but its uncertain when that will happen. In the meantime, we have a sale.

What I am planing to do, and this is not investment advice:

I looking to buy PSLV if the silver price drops down further. I don't want to buy physical right now because the premiums are outrageous (around 30% for silver eagles).

If gold drops below $1700 then I will likely buy physical gold. The premiums for gold are significantly lower. The 1 oz. gold eagle coins can be bought for around a 7% premium.
 

M'bare

Woodpecker
Gold Member
I wonder if they're manipulating prices and dropping them, so they can buy up gold and silver before Basel 3 kicks in completely?
 

C-Note

Hummingbird
Gold Member
Traders are selling paper silver and silver contracts on the open market. The investment thesis has not changed.

As Rick Rule says, people mistake inevitable and imminent. Silver is poised to make new all time highs, but its uncertain when that will happen. In the meantime, we have a sale.

What I am planing to do, and this is not investment advice:

I looking to buy PSLV if the silver price drops down further. I don't want to buy physical right now because the premiums are outrageous (around 30% for silver eagles).

If gold drops below $1700 then I will likely buy physical gold. The premiums for gold are significantly lower. The 1 oz. gold eagle coins can be bought for around a 7% premium.
Base metals, like copper, and gold were down today also. Actually, the price of gold dropped by about $100 over the past two business days. So, as usual, mining stocks for precious metals got creamed and base metal miners were somewhat down. I bought some mining stocks that were on sale. What's interesting about it is that many of those companies have been announcing their 2nd Quarter financial results over the past week or so, and most of them had a great quarter with really good revenue and net profits. Yet, their stock prices still tanked with the decline in the underlying metal prices.

In contrast, however, graphite and lithium mining stocks were generally up. I guess that shows it helps to be diversified.
 

NoMoreTO

Ostrich
The trade with gold and silver is pretty straight forward here. If you believe the Fed will get ahead of the curve or at least in line with it with regards to inflation, then sell. If you think the Fed will crab walk their tightening, then this selloff is a gift. I believe in the latter. - Peter Bookvar Source_Quote

I made a large purchase of physical 1oz Canadian Maples over a month ago from TD Bank in Canada.

I had to wait about 6 weeks, twice what everyone else I know has had to wait. An Anectodotal delay in the supply chain vs. how long my friends waited, but price is now crashing. It's actually quite strange, going on the TD website now, they have sales everywhere. Serious sales...generally the sales are what I would describe as "token" sales.
 
Last edited:

MRAll134

Pelican
Peter Schiff 1628576532933.pngwas talking about the price of gold on one of his recent podcasts. A snippet:

"In the long run, the fundamentals are the only thing that matter. And that’s why in the long run, we’re going to see a big drop in the dollar and a surge in the price of gold.

And:

"It’s this anticipation of the tightening process happening sooner rather than later that is the real reason that you saw the big bid in the dollar and the sell-off in gold — despite the fact that none of this really matters because the Fed is just bluffing about what conditions would be necessary for it to tighten monetary policy because I don’t think the conditions exist that would actually cause the Fed to do that.”

Original: https://schiffgold.com/peters-podcast/peter-schiff-markets-are-moving-on-a-fantasy/
 

zoom

Kingfisher
Gold Member
A moderator on the Wall Street Silver subreddit posted his theory about price manipulation. It's quite interesting. Here is an excerpt from his post:

Since not one member of the silver community has taken a swing at this one ... I'll go first. I think there is a pact amongst certain bullion banks that when substantial manipulation is required, and they need some dry powder, the pact has them to settle contracts jointly by EFP. After extinguishing those positions cloaked behind the OTC wall, they are free to re-enter the comex market to establish fresh positions and push prices as they see fit. Notice how the OI doesn't decline after positions are closed by EFP. That implies that new ones are re-opened.
On a beat down, maybe it would work like this ... let's say some banks are long and some are short. They do the EFP and settle per the pact agreement. Then they both go back to comex and sell like hell. After the smash, the pact is over and they go back to fending for themselves ... either continuing short or closing their short at the new low price.
I'm looking forward to Tuesday's mornings print of the comex report to see if the EFP game continues.

Source:
Another reddit user had a theory about why the manipulation is taking place:

They really want to make silver appear like an asset not worth buying and not worth holding. Have the whole world pretend that their silver futures price has something to do with real supply and demand. Exploiting our current day zeitgeist of instant gratification and short term rewards to the maximum. The prices drops are only meant for those still trapped in the Matrix to not want to escape their fiat mind prison.

Source:
 

Eusebius Erasmus

Pelican
Orthodox
The recent drops in gold and silver prices are straightforward to explain: economies are 'opening up' everywhere after lockdowns, and although inflation has been trending upwards, inflation expectations have been mollified through smooth-talking Fed speeches.
 

BURNΞR

Pelican
All commodities have the same problems. Rehypothecation, cost of self storage and you can just dig harder for more supply and reduce the price. Uranium has intrinsic value, you can make nukes and powerplants based around them. Price went from $40 in 2000 to over $125 in 2006. Then back down to $32 today. You can't really take possession of it since it kills you, costs go up exponentially the more of it you have to store. You end up buying and selling inflated paper claims of uranium (rehypothecation). And people will dig it harder and sell it reducing the price. Because of the opaqueness of storage facilities you have no idea what cartels are doing behind the scene. Too many attack surfaces and non-transparency. I have done a complete 180 on my views on commodities over the last 10 years. The way I see it the powers at be at playing whack-a-mole with the shooting prices of commodities since before I was born and while I do think this can't be done forever I certainly don't have the patience or long enough life span to see it through.
 

C-Note

Hummingbird
Gold Member
I just saw the news that Palantir bought $50M in gold bullion over the past year or so. If more people and organizations follow that lead, I can't imagine that the price of gold wouldn't go up, or at least hold steady for awhile. If so, wouldn't that help keep the value of silver up as well?
 
I just saw the news that Palantir bought $50M in gold bullion over the past year or so. If more people and organizations follow that lead, I can't imagine that the price of gold wouldn't go up, or at least hold steady for awhile. If so, wouldn't that help keep the value of silver up as well?
For all of human history, silver has been tied to the price of gold at a ratio of around 15:1. Today the ratio is around 60:1. So it should, but it won't. Anyway, buy & hold.
 

C-Note

Hummingbird
Gold Member

Keith Neumeyer lays out the silver investment thesis in clear terms.
The five biggest takeaways from the video that I took were:

1. Metals in general, not just precious metals, are undervalued right now. It's a buyer's market for metals commodities and mining stocks. He said that copper's price cannot be manipulated, so when copper consistently trends upward, all the other metals should eventually follow.

2. Newfoundland is the next emerging producer in precious metals production in Canada. I've noticed the same thing myself. A number of precious metals investors, including Altius Minerals, are investing in exploratory mining companies in Newfoundland, including Canstar (CSRNF), Canterra (CTMCF), Century Global (CEUMF), Sterling Metals (SAGCF), and Tru Precious Metals (TRUIF).

3. Copper and silver will benefit from the increase in electric cars, as both metals are used in the batteries and other supporting systems.

4. The mining industry is not currently ready or able to meet the demand for metals needed to drive the expansion of electric cars and batteries.

5. Technology manufacturers will start buying mines and mining companies. This has already crossed my mind that Tesla, for example, may be looking to buy undeveloped nickel and lithium deposits, as well as functioning mines, in North America for its own use.
 
Last edited:

C-Note

Hummingbird
Gold Member
Looks like silver futures are down 4% today? Mining stocks are down and approaching their year-to-date lows, especially silver miners.
 
Top