Silver Price Watch
- Thread starter STKR
- Start date
my chart format is totally different to yours.
Mmm. I was suspicious about the lack of tail on that candle. Looking back in the charts, the last time a bullish candle didn't have any tail was 115 weeks ago. It's not impossible, just not likely to go straight up from an open without a pullback. Looks like we finally got it on the Friday smackdown.
In 2011 they imposed position limits to prevent anyone from placing large positions on silver. Only those who were given "bona-fide hedge exemptions" were able to place large orders. Of course, this was the commerical bankers - giving them more control over the market.
I'm going to look into these EU restrictions. Looks to be anecdotal at this stage. What's interesting about this is the Wall Street Silver movement called for buy orders on PSLV. Maybe they're seeing a massive influx of buy orders from the EU, and maybe it's related to the Wall Street Silver/bets movement....
There's more info here on the Wall Street Silver reddit page:
Many other people are confirming the restrictions. Considering Sprott's PSLV is backed by physical silver, maybe the restrictions indicate a shortage of 1000oz LBMA spec bars. Maybe it's just temporary? Maybe it's here for good? If I were Sprott, I wouldn't be happy about this. It all seems like a play to reduce demand of 1000oz bars. As Oz suggested, this development along with the increased margin requirements indicates a desperate attempt to prevent silver from breaking out.
Many other people are confirming the restrictions. Considering Sprott's PSLV is backed by physical silver, maybe the restrictions indicate a shortage of 1000oz LBMA spec bars. Maybe it's just temporary? Maybe it's here for good? If I were Sprott, I wouldn't be happy about this. It all seems like a play to reduce demand of 1000oz bars. As Oz suggested, this development along with the increased margin requirements indicates a desperate attempt to prevent silver from breaking out.
Well Sprott's PSLV is different to Comex positions and other ETFs. It's backed by physical silver, so each time someone buys PSLV it will take physical silver from the market. By restricting buy orders for EU members, you're effectively limiting physical investment; specifically the 1000oz bars they'd buy to back their positions.
Ensuring 1000oz bars are available for delivery would also be protecting short positions. A real physical shortage would put more pressure on shorts than paper trading ever could.
