#silversqueeze
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Bullion Banks have long played an arbitrage game selling short COMEX and buying long LBMA (London OTC). They usually end up settling the trade with an EFP (exchange for physical) which is actually just a paper transaction in spite of the name.
What's been happening since December is that COMEX actors have been taking delivery of actual physical from London. LBMA vaulted stock of both gold and silver have been dwindling. When London runs out of silver (available silver - free float), no one will be able to play the COMEX short-LBMA long game any more. COMEX players holding massive short positions will need to find their hedges somewhere else (and there won't be anywhere else) - they are going to get squeezed.
What's been happening since December is that COMEX actors have been taking delivery of actual physical from London. LBMA vaulted stock of both gold and silver have been dwindling. When London runs out of silver (available silver - free float), no one will be able to play the COMEX short-LBMA long game any more. COMEX players holding massive short positions will need to find their hedges somewhere else (and there won't be anywhere else) - they are going to get squeezed.
I guess I just expect the COMEX and SLV to also offer up their reserves before it was game over. And who knows if all three players have access to other reserves that aren't declared. The numbers rarely add up and these repositories have added to their reserves in the past when there's also been a significant deficit in the market, all while the price of silver is falling.
COMEX is the whale that is draining the LBMA.
SLV has been raided by deep pockets borrowing shares to redeem metal. The SLV bar inventory over the last month or two shows outflows of Kazakhstan bars and inflows of Chinese and Russian bars (draining bars than can be sent to USA, taking in bars that can't or are expensive [subject to high tariffs]).
Intraday PSLV shorting activity strongly suggests deep pockets are trying to keep the premium to NAV below the threshold that might trigger PSLV to issue more trust units and then buy more London Good Delivery silver.
China (SGE) trading volume is picking up again. They are also buying.
Everyone is competing for a dwindling supply of London Good Delivery silver bars. Hence my tweet shared in post #17 of this thread.
I see this morning that the silver EFP spread is blowing out again. The squeeze is real.
SLV has been raided by deep pockets borrowing shares to redeem metal. The SLV bar inventory over the last month or two shows outflows of Kazakhstan bars and inflows of Chinese and Russian bars (draining bars than can be sent to USA, taking in bars that can't or are expensive [subject to high tariffs]).
Intraday PSLV shorting activity strongly suggests deep pockets are trying to keep the premium to NAV below the threshold that might trigger PSLV to issue more trust units and then buy more London Good Delivery silver.
China (SGE) trading volume is picking up again. They are also buying.
Everyone is competing for a dwindling supply of London Good Delivery silver bars. Hence my tweet shared in post #17 of this thread.
I see this morning that the silver EFP spread is blowing out again. The squeeze is real.
I wrote an article this morning about the silver market and the nascent #silversqueeze 2.0 effort:
www.pmbug.com
Silver Squeeze 2.0 Comprehensive Thesis
Last night, I participated in an impromptu, late night Spaces on X hosted by SilverDegen and (at various times) 20-40 members of the X #silversqueeze community. At the start of the session, some folks were asking some very basic questions and it occurred to me that there are a lot of people...
PSLV is a fund managed by Sprott:
sprott.com
Most folks in the States use a broker like Schwab to buy/sell. I'm not sure about brokers in Australia.
Sprott Physical Silver Trust | Sprott
The Sprott Physical Silver Trust (PSLV) invests and hold substantially all of its assets in physical silver bullion. PSLV seeks to provide a secure, convenient and exchange-traded investment alternative for investors who want to hold physical silver without the inconvenience that is typical of a...
Most folks in the States use a broker like Schwab to buy/sell. I'm not sure about brokers in Australia.
Well done. It's interesting that of all the people in the world, you're probably one of the most researched and most willing to offer a comprehensive documentation on this matter. Thank you.I wrote an article this morning about the silver market and the nascent #silversqueeze 2.0 effort:
Silver Squeeze 2.0 Comprehensive Thesis
Last night, I participated in an impromptu, late night Spaces on X hosted by SilverDegen and (at various times) 20-40 members of the X #silversqueeze community. At the start of the session, some folks were asking some very basic questions and it occurred to me that there are a lot of people...
I was fascinated by the events that took place in January of 2021 with the first WSS silver squeeze. Although many people may think nothing came from it, it was actually quite impacting - especially for the U.S mint.
I began collecting a series of coins to serve as a momento for this occasion:
As some are aware, WallStreetSilver propagated as a sub-group of WallStreetBets - most famously known for the billions of $$ losses they inflicted on Wall St monopolies that had massive short positions on company's like GameStop.
The first image is of the very first wallstreetbets silver round created. This was a project created during the inception of wall street silver.
The MS70 Eagle is an Early Release Emergency Production T-1 (last year for the standard eagle design) variety minted at the San Francisco Mint. The SF mint were commissioned to produce eagles due to the excessive demand at the time of the Wall Street Silver Squeeze. It's has a difficult to find red background that perfectly compliments the Emergency Production aspect of the coin.
The Silver Shield Craziest ones depicts Wall Street Silver riding on the back of the new Eagle design T-2 with the COMEX Firmly grasped in its talons, with both the eagle and Wall St bets flipping the bird.
I began collecting a series of coins to serve as a momento for this occasion:
As some are aware, WallStreetSilver propagated as a sub-group of WallStreetBets - most famously known for the billions of $$ losses they inflicted on Wall St monopolies that had massive short positions on company's like GameStop.
The first image is of the very first wallstreetbets silver round created. This was a project created during the inception of wall street silver.
The MS70 Eagle is an Early Release Emergency Production T-1 (last year for the standard eagle design) variety minted at the San Francisco Mint. The SF mint were commissioned to produce eagles due to the excessive demand at the time of the Wall Street Silver Squeeze. It's has a difficult to find red background that perfectly compliments the Emergency Production aspect of the coin.
The Silver Shield Craziest ones depicts Wall Street Silver riding on the back of the new Eagle design T-2 with the COMEX Firmly grasped in its talons, with both the eagle and Wall St bets flipping the bird.
Current battery technology is too heavy, is a fire hazard, has a short lifespan, and takes too long to charge.
I've always said I'd never buy an EV, but with solid state batteries I might be tempted.
EV and battery manufacturers are getting their silver supplies sorted before 2027. It's going to be massive.
au.pcmag.com
I've always said I'd never buy an EV, but with solid state batteries I might be tempted.
EV and battery manufacturers are getting their silver supplies sorted before 2027. It's going to be massive.
Samsung to Mass-Produce Solid-State Batteries for 'Super Premium' EVs by 2027
Multiple automakers have been testing product samples, bringing them closer to hitting the market. But like most new technologies, they won't be cheap.
Current battery technology is too heavy, is a fire hazard, has a short lifespan, and takes too long to charge.
I've always said I'd never buy an EV, but with solid state batteries I might be tempted.
EV and battery manufacturers are getting their silver supplies sorted before 2027. It's going to be massive.
Samsung to Mass-Produce Solid-State Batteries for 'Super Premium' EVs by 2027
Multiple automakers have been testing product samples, bringing them closer to hitting the market. But like most new technologies, they won't be cheap.
It shows as technology advances, the use cases for silver increase. This is where I think silver as a strategic metal will come into play and inevitably result in a prioritisation of new Silver supply.
