#silversqueeze
- Thread starter pmbug
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- silver squeeze
Not at the moment.
Collecting some information on the consequences of the LBMA running out of silver:
"In other words, if investors continue buying paper silver, SLV will need to buy more physical. If LBMA has no more silver to sell, SLV can’t issue new baskets.
The gap between physical and paper silver could quickly narrow as a result. Contributing to this problem is the fact that central banks don’t hold physical silver like they do gold. So, silver ETFs can’t even be loaned any silver by central banks in a time of unprecedented demand – something that may be quickly approaching.
You’d think silver’s (paper) spot price would be soaring in response to the recent physical silver shortage. But that simply hasn’t been the case...
...And if LBMA runs out of physical, spot silver could quickly surpass resistance at its recent double top.
It all depends on what happens from here, though. Without sustained buying in London, the silver short squeeze could fizzle out.
But if silver’s recent trend is any indicator, the run on physical should only intensify, pushing the above spot premium higher and higher.
And, eventually, it should also force paper silver to rapidly close the distance between the two markets."
"In other words, if investors continue buying paper silver, SLV will need to buy more physical. If LBMA has no more silver to sell, SLV can’t issue new baskets.
The gap between physical and paper silver could quickly narrow as a result. Contributing to this problem is the fact that central banks don’t hold physical silver like they do gold. So, silver ETFs can’t even be loaned any silver by central banks in a time of unprecedented demand – something that may be quickly approaching.
You’d think silver’s (paper) spot price would be soaring in response to the recent physical silver shortage. But that simply hasn’t been the case...
...And if LBMA runs out of physical, spot silver could quickly surpass resistance at its recent double top.
It all depends on what happens from here, though. Without sustained buying in London, the silver short squeeze could fizzle out.
But if silver’s recent trend is any indicator, the run on physical should only intensify, pushing the above spot premium higher and higher.
And, eventually, it should also force paper silver to rapidly close the distance between the two markets."
Yes, that's the gist of it. However, Trump's tariff announcement specifically excluded bullion. The tariff risk that was driving the "EFP premium" or "London/NY spread" (COMEX futures - London OTC/spot) has collapsed and turned negative again (for silver, gold is still positive). That is likely going to slow or stop the flow of silver from LBMA to COMEX. We'll see.