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London Silver hits Lowest Level || EU Bank Failure Risks Rise

ozcopper

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The last time the spot #Silver price had such an extreme 1-day jump was in late 2008, as the first round of quantitative easing began by the fiat Federal Reserve.

While we will update a few key data points for you, CNBC in India had the following coverage on silver this week.

The spot silver and spot gold prices rose in trading this week.

The spot silver price closes just over $20 oz, and gold's bid price finished just below $1700 oz for the week's trading.

The gold-silver ratio fell slightly to close at 84 for the week dipping as low as 81 early in the week.

Despite the underlying fundamental bullishness for silver, market commentators and consultancy Metals Focus released a note this week stating their belief that silver and gold spot prices in fiat US dollar terms still face headwinds to close this year as the fiat Federal Reserve looks to raise their federal funds rate again this month. Driving what they expect will be further relative strength in the fiat US dollar to come.

Perhaps some of the biggest risks underlying the global financial system at the moment has become the potential failure of major commercial bank names in Europe.

Credit default swap rates are climbing on major European bank names, reflecting the increasing amounts of insurance being bought in case the likes of Credit Suisse, BNP, Deutsche Bank, or UBS fail.

The Bank for International Settlement's Financial Stability Board defines all four banks as (G-SIBs) Global Systematically Important Bank names. If any of these major bank names failed, the amount of contingent derivative bet contagion could freeze up the entire global financial system.

In late 2014, the G20, the world's largest twenty economies, signed supranational laws stating that the next banking failure crisis will not be met with bank bailouts but instead with bank bail-ins.

We made a video on the very real threat of bank bail-ins in late 2019, and we will leave a link to that in the comments below if you missed it.

6 Mega Banks Which May "Bail You In" | G20 #BankBailIn Laws
- https://youtu.be/cnBPnLJzdYk -

It is ongoing underlying fundamental facts that are driving more investors around the world, from India, China, the EU, and many North Americans, to increasingly become their own banks by owning prudent stashes of bullion #SilverSqueeze'n outright.

Ongoing bullion industry data illustrates that this trend only appears to increase as the months and years progress.

That is all for this week's SD Bullion Market Update.

As always, to you out there, take great care of yourselves and those you love.


[youtube]https://www.youtube.com/watch?v=KmgcVqGybNI&ab_channel=SDBullion[/youtube]
 
That last video is a cracker. Albeit an Indian mainstream media outlet, I've never seen such a comprehensive silver market analysis from a mainstream news station. They covered a lot of data in a very short amount of time. Such a report would surely result in more demand for silver in India alone.

The draining of silver reserves in the LBMA and Comex shows how they're able to continuously suppress the price of silver. When you look at the silver surveys and the increase in the Comex and LBMA silver repositories, the numbers don't add up. What I think has occured is governments have dumped the last of their silver reserves into these repositories to manage the price of silver. Prior to 2015, government sales had their own field recording government intervention in the silver markets. They would always make up the shortfall in Supply.

We're still a long way away from having no intervention in the physical markets, but the rapid draining of these repositories is a strong indication that free-market-forces will eventually take hold and the price of silver will become untethered from such interventions/manipulations.

When there is no longer any silver to feed the markets in times of deficit, the price of Silver will inevitably rise to new highs. A sharp rise will see more investor interest, which will lead to more physical demand, which will lead to larger deficits, which will lead to an exponential rise in price.

If the current trajectory continues, we could see these repositories drained by around 2030. However, if we see a 5x increase in physical investment demand, these repositories could be drained by early 2024. That's assuming all the declared silver in these repositories is available to the market, or even there at all.

 
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