flower-shilling

Silver Price Watch

Smithys Bullion - FINE GOLD AND SILVER
How's this AI response to the question: "Why do commercial banks short silver?"

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It's funny how price management and price suppression are front and centre.
 
Commercial banks often short silver to hedge risk and take speculative positions in the derivatives market, which is a normal function of financial markets, but they aren't cornering the silver market because they lack control over the physical supply and must manage immense market forces that work against such attempts. While concerns exist about market manipulation and price suppression of silver, especially in the derivatives market, it is unlikely that commercial banks are currently attempting to corner the market, as such an endeavor would be extremely difficult and likely lead to severe consequences.

Why Commercial Banks Short Silver

  • Hedging and Speculation:
    Banks often engage in short positions in silver derivatives to hedge against price risks for their clients or to speculate on falling prices.
  • Market Function:
    Shorting is a common financial practice that allows market participants to profit from or protect against downward price movements in various assets.
Why They Are Not Cornering the Market
  • Physical Supply Control:
    Cornering a market requires control over the physical commodity, which commercial banks do not possess in the silver market.

  • Market Size and Liquidity:
    The silver market, though smaller than gold, is still substantial, making it incredibly difficult and expensive to manipulate or corner.

  • Regulatory Scrutiny:
    Attempts to corner a market are illegal and invite intense regulatory scrutiny, potentially leading to fines, charges, and bankruptcy, as seen with the Hunt brothers.

  • Market Forces:
    Global supply and demand, along with the actions of countless other market participants, exert immense pressure that works against any single entity trying to corner the market.
Certainty of Not Trying to Control the Market
  • High Likelihood:
    It is highly unlikely that commercial banks are currently attempting to corner the market.

  • "Manipulation" vs. "Cornering":
    While there is widespread belief and evidence of market manipulation and price suppression, which involves artificial price movements through actions like large short positions or quote rigging, this is distinct from cornering the market.

  • Consequences of Attempted Cornering:
    The financial and regulatory consequences for such an illegal activity would be severe, making it a highly risky endeavor that most major financial institutions would avoid.
 
who is the partner who hold billions of ounces standing ready to supply phisical to the market, if the price rise. LOL
 
Looks like a glitch. Nothing showing up on metaTrader. I wonder if that blip was factored in and triggered anyone's TPO's
 
I hope to see 50 usd for breakfast tomorrow.
Also suprised folk arent selling gold or silver at spot here, given the pics of ppl lining up outside abc to melt their stacks. Surely silveroos would fetch a better price?
 
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