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28859323 No.28859323 [Reply] [Original]

I have a question about the silver squeeze. Something I've been thinking about..

If it indeed happens, won't it only be the physical silver that explodes in price? This whole thing is bound up on the fact that bankers short their own paper silver (ETFs), so why would anyone buy them and not sell them, making the paper silver drop hard, while physical silver goes the other way?

And in case it happens, won't the banks just win, since they're shorting paper silver?

>> No.28859641

>>28859323
>And in case it happens, won't the banks just win, since they're shorting paper silver?
Nah because for every short they do of paper silver that is supposed to track silver price, someone has to go long, or else there is nobody to shortsell to. Nobody is going to go long on paper silver that is only going to go down. What happens is, that market of paper silver longs that is multiple hundreds times the market of physical silver will start to buy real physical silver exposure instead (physical backed ETF, silver miners, physical silver), making the price of silver skyrocket.

>> No.28859743

>>28859323
If the market has contend with Silver Scarcity there will be absolute chaos.

Silver that is sold into industry which needs it will have no idea what they should be pricing at which will cause price changes all throughout the supply chain.

We don't have a fair and honest market so any drastic changes will cause huge selloffs and buyins on speculation further adding to the cycle of chaos causing more chaos.

I don't believe the Silver Short is possible since there is so much Global control of the metal market, but if it was to happen, the price of actual silver would only be one casualty.

>> No.28859854

>>28859641
>making the price of silver skyrocket
Yes, the physical silver.. But what about the fake paper silver that the banks have shorted? - Won't it just collapse, making them even richer, while the real silver price (the one without a graph) would of course be skyrocketing?

>> No.28860083

>>28859743
>Silver that is sold into industry which needs it will have no idea what they should be pricing at which will cause price changes all throughout the supply chain.

This is really interesting. What industries are going to get fucked by high silver prices?

>> No.28860166

>>28860083
Pretty much all tech related, I guess. If Elon was smart, he'd bought $1.5 billion worth of silver today, and not Bitcoin, lmao.

>> No.28860472

>>28860166
Not just tech, but also medical.

If silver jumped in price that could really hurt the profitability of the Solar Panel industry. With the Biden administration if they saw Solar Panel companies going out of business they'd definitely throw stimulus money at it.

So price wise just with solar panels you could see dramatic mountains and valleys as the market reacted. An accomplished swinger could make some good money there.

>> No.28860714
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28860714

>>28859854
>Yes, the physical silver.. But what about the fake paper silver that the banks have shorted? - Won't it just collapse
Well, most of it is in $SLV.
While it is impossible for small fish to redeem $SLV for physical silver, it is supposedly possible for whales to redeem.
We talk about $SLV a lot as paper silver but it didn't really start out that way and isn't technically paper silver. It just effectively is paper silver for most market participants.

If you are an "authorized participant", you have the right to redeem 50000 shares of $SLV for ~46.450 ounces.
This means that if the $SLV and physical silver price decouples too much, "authorized participants" will buy $SLV and demand physical silver delivery so they can profit from the difference in price. This will result in $SLV being "burned" for delivery of physical silver that the iShares Silver Trust has to buy (if they don't have it).
If iShares Silver Trust actually has to buy on the open market, it further increases the silver price, which will further increase the $SLV price because whales will buy it to redeem for silver so long as the difference in price is large enough.
This causes at first a shortsqueeze on the whales are are short $SLV. If iShares Silver Trust is lucky, it will happen fast and hard and the shorts will be forced to cover before iShares Silver trust has to give much physical silver for redemption.

If iShares Silver Trust runs out of silver to deliver and money to buy silver with in this kind of a "run on the silver bank" situation and there's nobody to bail them out, then yeah that is when $SLV gets truly worthless. Most shorts would lose in a squeeze before that "win", though.

>> No.28860809

>>28860472
Yeah, that's true. Makes sense. It would suddenly become a volatile and interesting market, like cryptos.

When bitcoin got listed on CME, I remember one of these old Jews talking about how they'd "tame bitcoin". So I guess they've tamed the metals market for hundreds of years, and now, maybe, it's coming to an end.

>> No.28860966

>>28860714
Aah, I see. That's the best explanation of anything I've seen in a while. Thank you very much, anon.

Do you personally believe in a soon-to-come silver squeeze?

>> No.28861845

>>28860966
>Do you personally believe in a soon-to-come silver squeeze?
I have a small portion of my portfolio in a silver miner I believe will increase in value even if the price of physical silver stays where it is. I also think organically the increasing demand for silver from industry acts as a safety and possible tailwind for the investment.

I think it's possible we are headed for a silver squeeze but I've been reading about the silver squeeze hypothesis for several years and it's always "soon-to-come".

It might be different this time and it seems like the most hopeful event yet for something like that to happen considering it's now not just american boomers, but many people in the world buying physical silver... but I think we're too far away from critical mass to know and we're not privvy to necessary information to see how far off we are from making physical deliveries really difficult. A lot of the price difference between physical silver and $SLV at the moment could be explained by sellers of physical silver seeing it as a temporary profit opportunity to raise prices.

>> No.28862161

>>28859323
Do you wanna a redpill? Here it comes:
>In Tesla report where they said they bought $ 1.5b in Bitcoin, they also said that also bought gold (both ETFs and bullions) as store of value
>They didn't said the ammount of gold they bought
>"They also didn't said that they bought silver!". That's true, but they actually DON'T HAVE TO, because they can buy it and put it in the account item of "inputs" rather than "investments"

>> No.28862549
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28862549

Silver is going to moonshot February 24th, stack now or forever fellate for Merc dimes.

>> No.28862894

>>28860714
But wont the COMEX just settle in cash if this were to happen? They already have their out

>> No.28862911

The silver manipulators are scared and now calling in for favors.
(See Blackrock).
It’s getting close to default.
Why so many anti-physical shills lately?
Only two rules...
If you don’t hold it, you don’t own it.
Just buy the fucking dip!

>> No.28863063

Bought a March 19th OTM $SLV call for fun a few weeks ago. Mostly trade crypto.

Holy fuck how do you retards actually put up with that market? Makes pajeet scams look legit. You retards actually hold this shit for years while getting pounded up the ass by JPM?

>> No.28863265

>>28861845
Interesting. Thanks. I hold 15 Oz of fine silver. Planning on expanding my holdings the coming year or so.

>> No.28863509

>>28862911
What dip?

>> No.28863554

>>28859323
>And in case it happens, won't the banks just win, since they're shorting paper silver?
They will win in fiat.
I suppose.
Meanwhile how much of the new currency will they be able to afford with that fiat?

>> No.28863778

>>28862911
It's like you summoned the shill >>28863063

>> No.28863824

>>28862911
OP here. I'm not anti-physical silver. I'm very pro-physical silver. I just had a question, and someone gave me a proper answer. I love holding physical silver and gold. Even better than cryptos. Maybe not as profitable short term, but it feels better knowing that you have it physically, where you want it. No pk or hardwallet can ever compete.

>> No.28863860
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28863860

>>28859743
>I don't believe the Silver Short is possible since there is so much Global control of the metal market,
The silver squeeze is not possible because those who set the prices by pretending to be trading 3 billion ounces weekly (namely JPM and London COMEX) when the global annual supply is 1 bn ounces, do not ever have to provide the physical silver to anyone.

You can buy SLV
You can never ask for the silver which the SLV supposedly backs.
We will se physical to paper silver price breakoff.
We will see CNBC report "delays in deliveries due to logistical problems amid high demand" and that's about it.

What we will not see is an honest silver squeeze where everybody scrambles to provide silver by the deadline since everybody will just be paid out. There will be no deliveries with regards to COMEX.

>> No.28863970

>>28863063
>Bought SLV
>Pajeets look legit compared to this shit
Next time, ask here first son.

>> No.28864197

>>28861845
What mining stock?

>> No.28864737

>>28863860
>The silver squeeze is not possible because those who set the prices by pretending to be trading 3 billion ounces weekly (namely JPM and London COMEX) when the global annual supply is 1 bn ounces, do not ever have to provide the physical silver to anyone.
This is only partially correct, and ultimately misleading.
If the physical silver available for sale/delivery dries up, the combined jewelry, speculative and industrial demand will bid-war physical silver prices upwards.
>You can buy SLV
You can also buy PSLV or physical silver in physical space.
>You can never ask for the silver which the SLV supposedly backs.
But whales can, and they will do arbitrage.
>You can never ask for the silver which the SLV supposedly backs.
Not before shorts are shrekt by the $SLV arbitrage causing $SLV to follow the price of physical silver with some pricelag.
>>28862894
>But wont the COMEX just settle in cash if this were to happen? They already have their out
Good point. If they do that then the rocket on physical demand won't get as much fuel.
However, this is likely to only happen if a shortsqueeze has already started to begin, and if the shorts are forced to cash settle based on the physical silver price, they may still get shortsqueezed, as they will still struggle to pay for it. But it won't be as explosive, sadly.
I suppose a portion of the long side might reinvest cash settled gains into "really physically backed" ETFs after losing trust in COMEX. The announcement might also cause increased buying frenzy for physical silver because COMEX is essentially admitting a shortage.

>> No.28864896

>>28864197
Ditto. Forgot to ask.

>> No.28865415

>>28864737
Yeah bullish for silver either way but I'm not counting on explosive action in physical. It'll be a gradual climb imo

>> No.28865710

>>28864737
>But whales can, and they will do arbitrage.
I thought the ones that can request delivery were named specifically.

>> No.28867141

Bought 2k worth of $AG 2 weeks ago.

>> No.28868060

>>28859323
It depends on what you believe is going on with silver in the first place. If you think that silver is underpriced, removing some of the silver swimming around will just make all the prices go up, including all the ETFs that track it.

If you believe one or more of the ETFs is lying about how much silver they actually have- or if you believe that some of the silver referred to with any paper anywhere really, doesn't exist- then anyone with EITHER physical silver or a paper that is valid will do fine, whereas if you have paper that is a lie, you will be left holding some kind of bag- probably someone will buy you out at some predetermined price you can't say no to.

I just think silver is a bit underpriced. I don't think anyone is gonna "squeeze" shit. I also think that when the bull market seizes up, be it tomorrow or next year, that silver will go up a bit then. But since it is a metal used in the economy, there will be forces driving it down (less need) in a bear-world, so it's not some huge hedge.

>> No.28868167

>>28864737
You mention SLV and PSLV, but what's up with Auberdeen's physical silver fund, SIVR? Isn't it basically the same type of thing as PSLV but in different vaults and with a different steward?