The London Base Metals Exchange (LBMA) is in full crisis mode. Now there is worse news. The Dragon will not be exporting ANY bullion and they are the worlds largest producer of Silver. That metal is on a tear with refineries unable to keep up with demand to supply .999 fine 1000 ounce bars to the LBMA and to the Comex (the United states version of the LBMA). You need to be informed to this situation. We are moving into a Silver Squeeze. Things happen gradually until the last 10 percent of the move then they happen VERY fast.
I knew this would happen eventually but never expected this to happen so quickly. The magnitude of this all coming together is insane. Industry demand is eating up all the production and within the next few weeks the uptick in pricing will continue. You are likely not going to be able to find much supply to purchase if you are trying to get into this race to the top. Right now as I type the current spot price at 54.08 dollars per ounce. Triple digit prices are highly likely within the year.
In an of itself.. a rise like this in a commodity that has been actively suppressed in price for decades shows a loss of control... The scam that has been holding down prices has now set up huge banks that hold enormous naked short positions of the metal. This means they have bets on silver prices being low, staying low but don't have the silver on hand to back it up if the price goes up. So they are exposed to HUGE losses. There will be bank failures due to this price rise.
There will also be derivative dominoes falling as a result of this. Logistical bottlenecks in the markets will create new policy. Western banks will be scrambling with no relief in sight.. Arbitrage will fail and true price discovery will occur. There is a HUGE power shift going on from the west to the east as much money (mostly US treasuries) is being put into precious metals. The east is playing chess and we were paying checkers... The red flags are flying...
Depending on what the federal reserve does with interest rates may slow the rise of gold/silver but eventually that will not keep the rise down. The cards of this house are coming down. The paper to physical ratio is being exposed and the gloves are coming off.
So stay tuned for this rare squeeze scenario as PM's launch to historic heights. Bear in mind that 50 dollar silver today is the same as 12 dollar silver in 1980 so adjusted for inflation, silver has a LONG way to go.
#backcountryperspective
Image: 40,000 ounces of silver on a pallet.. 1-1000 ounce bar weight 68.5 pounds. This pallet is worth about 2 million bucks... And weighs 2740 pounds...
