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Does the SLV silver ETF (custodian JP Morgan) have all the silver it claims to have?
Does the SLV silver ETF (custodian JP Morgan) have all the silver it claims to have?
— BullionStar (@BullionStar) February 3, 2021
https://www.zerohedge.com/commodities/houston-we-have-problem-85-silver-london-already-held-etfs
Excerpt:
By calculating how much silver the ETFs hold in London , we can determine how much available physical silver remains in the London LBMA vaults that is not already held by these ETFs. This then gives an estimate of how much room these ETFs have before they hit a wall of not being able to source any more silver in the London vaults without having to import it or ship it in. And the answer, as you will see below, is not that much room at all.
Because out of the 1.08 billion ounces of silver (33,609 tonnes) that the LBMA claims is stored in the London vaults (as per latest LBMA data to end of December 2020), a whooping 83.3% or 28,007 tonnes (900.42 million ozs) is already accounted for by these ETFs. This is based on ETF holdings as of end of day 5 February 2021.
Add in another 22.22 million ozs (691.3 tonnes) of silver held by Bullion Vault (BV) and Gold Money (GM) in the same London vaults, and there are a massive 28,698 tonnes (or 922.65 million ozs) of silver accounted for in the combined ETFs and in the BV/GM holdings. That’s 85.4% of all the silver that the LBMA claims is in the London vaults.
The criticality of the situation was even more acute based on end of day data from 3 February 2021, when based on the same calculation approach, there was only 4,366.7 tonnes of silver in the LBMA vaults (13% of the total) that were not accounted for by silver ETF and other transparent silver holdings. On that day, a full 87% of all the silver in London was held the ETFs and other transparent holdings.
Another 3-4 days of similar magnitude dollar inflows just into SLV would require SLV to source another 3000-4000 plus tonnes of silver, which is mathematically impossible based on the amount of silver said to be in the London vaults. This could cause the SLV to literally seize up and cause all the other silver ETFs with London storage to seize up too. This is assuming no new silver arriving into the London market in quantity at this time. Which is not an unrealistic assumption to make given that there is currently a global demand spike for physical silver. In other words, “terminal market” physical silver inventory would not be “finding its way into Europe” since global investment demand is strong, not weak.
Painting the Tape in Paper Silver
Which is why it now looks like the bullion banks torpedoed the COMEX / LBMA price of silver on Monday 1 February and Tuesday 2 February so as to paint the tape and attempt to break investor sentiment and prevent further inflows into the silver ETFs. But if that was the plan, the bullion banks didn’t succeed, since total ETF holdings only ebbed marginally over the rest of the week following the bullion bank price onslaught.
In short, the scarcity of available silver in the London LBMA vaults is far more advanced than most people think. And with 14 ETFs, and not just SLV, competing for available silver, the bullion banks and storage providers are now in a “Houston, we have a problem” mode
Conclusion
If the above 14 ETFs see continued investment inflows, they will all have to compete for the available silver in London which is not already held within these ETFs. And that available silver is at an historic low, some 3000 tonnes or so. A few more days of inflows like the ones seen over 29 January to 2 February would be a major emergency for these ETF providers, particularly the iShares SLV. Because there is just not that much physical silver left in the vaults of JP Morgan, Brinks, Malca-Amit, Loomis and HSBC, which is not already reported as being in these ETFs.
And lets not forget all the unallocated silver positions which are outstanding which are claims against the bullion banks for silver which they have not got. Anyone with deep enough pockets could now cause a serious run on the remaining available silver stored in London that is not currently attributed to the above ETFs
I liked the part where he says we're on fire watch and where he uses his wrench to test the battery. And pumping up those worn tires is a little dangerous given that they can explode (I've had that happen before).
You can learn a lot just watching and listening to guys like that. I'm about half way through it. I'd rather spend my time on a vehicle that can appreciate though.
The problem is that Dent makes wild predictions that never come true. I do admit that some of what he says makes sense. It's just that his market predictions (in all markets) just don't come close to what really happens.
Monetary Policy Is Pushing Americans, Kicking And Screaming, Up The Risk Curve : https://www.zerohedge.com/markets/monetary-policy-pushing-americans-kicking-and-screaming-risk-curve
My Comment : The message is :
1) There is a limit to the monetary and fiscal policies which have created the stock market insanity (Are rising rates the proverbial wall ?)
2) The Fed will not save individual reckless financial decisions in the stock market (Only the too big to fail have that protection)
Excerpt :
The Federal Reserve has done more in the past 25 years than its founding legislators and early governors surely ever conceived it would. With that in mind, one wonders what the end game is, especially in light of two facts.
First, that the inclination of monetary authorities the world over is toward lower and lower thresholds for intervention.
And second, that fiscal and monetary policies have a way of suddenly finding limits when the tax-paying everyman is on the receiving end.
If there is a component of the growing disposition for risk inspired by the idea that the Fed will swoop in to save retail investors from failed ETFs, collapsed SPAC prices, a wave of microcap stock delistings, or any other consequence of their understandable but reluctant march up the risk curve, it is ill-advised. Any lasting solution is far more likely to come from markets themselves.
re Microcaps -
Monetary Policy Is Pushing Americans, Kicking And Screaming, Up The Risk Curve : https://www.zerohedge.com/markets/monetary-policy-pushing-americans-kicking-and-screaming-risk-curve
Excerpt:
Microcap stocks
Investors have clearly become more interested in the riskiest segment of the equities markets. A look at the Russell Microcap Index shows this. In the roughly five years between 1 January 2015 and the market crash on 16 March 2020, the total return on two major microcap stock indices (OTCQB and Russell Microcap Index) versus the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite were as follows; note the comparative total returns and annual equivalent rates:
(Source: Bloomberg Finance, LP)
And yet, since the March 2020 crash, comparative returns have shifted markedly; again note the change in total returns and annual equivalent rates:
(Source: Bloomberg Finance, LP)
In the five years wherein the Fed began to slowly raise rate targets, large cap stocks did fairly well while microcaps largely fell. And since the Fed tanked rates back down in the early portion of the pandemic, the smallest and most speculative segment of equities has returned double what large, established publicly-traded companies have.
As shown: in the wake of the tremendously expansionary turn in monetary policy in March 2020, microcap stocks rocketed upward in price.
re: Real Estate -
I listen to a local RE program on the radio on Sunday mornings. And they keep talking about low inventory and higher prices with multiple offers of 10%-15% over asking. These are $800K asking prices. It seems everyone can afford a $1Million house with 3% down and less than 3% mortgage rates. A lot of buyers are going to have negative equity in the next recession and we know what those buyers did when the RE bubble burst in 2008 .. they turned their keys over to the banks leaving the banks holding the bag. Supply will not be a problem when people lose their jobs and/or if and when rates rise. The current RE bubble is worse than 2008 even though loan standards have tightened since 2008.
Another possibility is that Treasury rates increase (bonds lower) as the national debt explodes higher in any economic downturn. And Dent thinks PMs are only an inflation hedge. We've had no official inflation forever and yet the PMs have move higher. PMs are a safe haven and protection from currency debasement.
Crypto Clubbed Overnight - What Happens Next? : https://www.zerohedge.com/crypto/crypto-clubbed-overnight-what-happens-next
Chief Economist: The Unprecedented Scale Of US Fiscal Stimulus Will Lead To Epic 2023 Bust : https://www.zerohedge.com/economics/chief-economist-unprecedented-scale-us-fiscal-stimulus-will-lead-epic-2023-bust
My Comment : So there you have it ... late 2022/early 2023 for the bust. Can things be held together that much longer ? And 2022 is a mid-term election year. One thing is for certain : No matter when it happens, the bust will be far worse than any we have experienced in the past and I think it will swamp the Fed.
Excerpt:
During World Wars, activity in the private sector is depressed. That's not the case today. The housing sector is booming, with housing starts at the highest levels in 15 years, and prices are rising double-digit to record levels. At the same time, the manufacturing sector is experiencing a mini-boom in orders and production.
Given the scale of fiscal stimulus, one would expect the Fed to be thinking of "leaning against the wind." But not this Fed--the Fed is using the same playbook from the Great Financial Recession, providing unneeded stimulus to the red-hot housing market.
What's the economic and financial endgame? It's hard to see anything but a "boom-bust" scenario playing out with fast growth and rising market interest rates in 2021 and early 2022, followed by a bust in late 2022/23 when the fiscal stimulus/support dries up.
The US experienced mild recessions following the sharp drop in government military spending after the Korean and Vietnam wars----and back then, the scale of military expenditures amounted between 2% and 4% of GDP. The "sugar-high" today is unprecedented, raising the odds of a harder landing.
re: Condor -
Condor is waiting on Covid to allow access to their properties. A bigger problem is they need money to fund the simultaneous drilling of four properties. Those funds will come from the sale of Lucero ($3.5M over 5 years) and the proceeds from Soledad ($5M due 4/2022). All this implies another year before they can drill and I don't expect the share price to do much in the meantime. It's a question of whether investors have the patience to wait another year. I currently have over 1M shares and I'll buy more if the share prices drops substantially. I really don't understand why Condor wants to drill all four properties at once because it means more funds will be required than if they concentrated on one property. Maybe they'll find a way to fund the drilling before 4/2022, but we just don't know.
Naked Short Selling: The Truth Is Much Worse Than You Have Been Told : https://www.zerohedge.com/markets/naked-short-selling-truth-much-worse-you-have-been-told
My Comment : I don't understand how short sellers are allowed to short more than the existing float. For example, GME was shorted by 136% of the active shares.
Excerpts:
While “long” sales mean the seller owns the stock, short sales can be either “covered” or “naked”. A covered short means that the short seller has already “borrowed” or has located or arranged to borrow the shares when the short sale is made. Whereas, a naked short means the short seller is selling shares it doesn’t own and has made no arrangements to buy. The seller cannot cover or “settle” in this instance, which means they are selling “ghost” or “phantom” shares that simply do not exist without their action.
Naked short selling was officially labeled illegal in the U.S. and Europe after the 2008/2009 financial crisis.
Making it illegal didn’t stop it from happening, however, because some of the more creative traders have discovered convenient gaps between paper and electronic trading systems, and they have taken advantage of those gaps to short stocks.
Still, it gets even more sinister.
According to Christian, “global working groups” coordinate their attacks on specifically targeted companies in a “Mafia-like” strategy.
Journalists are paid off, along with social media influencers and third-party research houses that are funded by what amounts to a conspiracy. Together, they collaborate to spread lies and negative narratives to destroy a stock.
This article says silver supply almost depleted (see post to which this post responds to)
Excerpt:
February 2 (King World News) – Willem Middelkoop: The Core of the Silver Squeeze Production deficits as far as the eye can see (see chart below).
Annual Global Silver Deficit (RED) Is Ballooning
How Has This Massive Silver Deficit Gap Been Filled?
The gap was filled by selling above the ground silver stocks (mainly a few billion of the old silver coins).
The Problem
That stack is now almost depleted.
Media has contradictory reports about silver shortage -
My comment : So are the vaults empty or is there a year's supply of inventory ?
The post which this responds to says physical in short supply
The following says plenty of silver: https://www.kitco.com/news/2021-02-04/Why-was-silver-targeted-Analysts-point-to-a-price-move-in-silver.html
Excerpt:
The social media trend also revealed just how liquid the silver market is, she pointed out.
"It is a well-supplied market, with more than a year's worth of inventory. What we could see some tightness in the near term if some of the retail industry started to unload," Cooper warned.
Silver exploits -
My Comment : I certainly hope the silver paper market gets crushed and JPM along with it.
I found the following post from today and the response to it interesting (see isvlf bullboard on stockhouse.com) :
Rumor
HEADS UP.. Rumor is that JP Morgan is about to do dump a sht load of paper silver on the market...Be carefull...
RE:Rumor
You mean on top of the 4 billion oz's of paper shorts already dumped the past several day? Amounting to about 4-5 years total world mining output?
People are starting to wake up. Funny thing is, people are having trouble buying this worthless hunk of metal and if they can find it, they could wait for a month or mor and pay up to $15 over spot....no lies going on here eh?
it appears they are finally losing control of the price. Vindication time might have finally arrived for silver bugs.
Thanks. That was a long, but good article. I extracted a few excerpts below :
Skipping down the street hand-in-hand with the speculative extreme in valuations is the speculative extreme in leverage. Margin debt – the amount of money that investors have borrowed in order to buy stocks – is now at the highest level in history, not only in absolute terms, but also relative to U.S. GDP
.
I’ll say this again. I believe that future investors will look back on the present moment the same way that we look back on the 1929 and 2000 extremes. People will use us to teach lessons to their children.
The immediate problem is that this whole process of Fed-induced yield-seeking speculation and demand-driven issuance of low-grade securities has now been wholly reproduced, but in magnified form. The only difference is that the objects of speculation involve common stocks, leveraged loans, and corporate debt with “covenant lite” features. Investors and policy makers seem to have little grasp that all of this has happened before, and an even weaker grasp of what is likely to happen next.
The Fed is like a mechanic that loosens the wheel bolts on people’s cars because he thinks it will improve their mileage, then shrugs “we don’t have the tools” to keep their cars from swerving into the ditch.
Here’s a tip. Maybe stop loosening those wheels. Stop putting everyone at risk from experimental fixes that aren’t in the manual and produce consequences that you don’t comprehend. The swerving and crashes are your own doing.
To get a sense of how extreme valuations have become after a decade of deranged monetary activism, the chart below shows the ratio of U.S. total equity market capitalization to GDP. The present ratio is 2.63. The historical norm – not the low, the norm – is 0.78, about 70% below the current level.
The chart below shows the median price/revenue ratio of S&P 500 components. The fact that this is so profoundly beyond the 2000 peak underscores the breadth of this “everything bubble.” Back in 2000, the extreme overvaluation of the market had a “two-tier” quality in which “old economy” stocks were largely abandoned. While there’s no question that the largest capitalization stocks in the S&P 500 are also the most steeply overvalued, it should also be clear that the current bubble has not left “pockets of value” in the broad market.
The problem is that the psychological impulse to own something other than cash, regardless of price, has created a situation where stock market valuations have been bid up to levels that imply negative S&P 500 total returns for well over 12 years.
There’s no way to sustain a bubble without making its consequences worse. The appropriate policy response is to focus on the continued flow of payments through the economy and not the value of paper assets. Much of what investors presently count as “paper wealth” is likely to simply evaporate. Nobody will “get” it in a collapse. It just vanishes.
Again, the stock market would presently have to lose over two-thirds of its value simply to reach historically run-of-the-mill valuation norms
In prior market cycles across history, there was generally a “limit” to speculation. Once sufficiently extreme “overvalued, overbought, overbullish” conditions emerged, one could adopt a bearish outlook even if market internals were still favorable. The only thing truly “different” about the recent market cycle was that the Federal Reserve actively encouraged yield-seeking speculation long after speculative extremes had emerged, by replacing interest bearing Treasury debt with a mountain of zero-interest base money that someone has to hold at every moment in time until it is retired. In response, investors have bid up the prices of other assets to the point where they too are likely to produce zero returns for a very long period of time – even if those zero returns are delivered in an “interesting” way, through a series of collapses and recoveries.
Understand how extreme current valuations have become. In order to simply touch run-of-the-mill historical valuation norms, the S&P 500 would have to lose somewhere in the range of 65-70% over the completion of this cycle
I view the current combination of hypervaluation, price overextension, lopsided bullishness, and unfavorable market internals as a “trap door” situation. Imbalances aren’t resolved sooner just because the imbalances are larger. Instead, crises emerge seemingly out of nowhere, when a vulnerable window or a trap door swings open
This is serious, and there’s no way to sustain it without making its consequences worse. The appropriate policy response to a financial collapse is to focus on the continued flow of payments through the economy and not on bailing out the value of paper assets. You support restructuring of economically important companies, but you don’t use public funds to bail out private investment losses. As the current speculative bubble unwinds, many paper assets are likely to evaporate, because they’re valued at unsustainable multiples of GDP and representative fundamentals. If policymakers like central banks were to buy the assets, the losses would simply be placed on the public books, and they would need to lose two-thirds of their value just to reach run-of-the-mill historical valuation norms.
"The Fed's Monetary Punchbowl Is Fueling Rampant Home Price Appreciation": AEI : https://www.zerohedge.com/personal-finance/feds-monetary-punchbowl-fueling-rampant-home-price-appreciation-aei
My Comment : It truly is the "Everything Bubble". Imagine both housing and stocks crashing in tandem. The Fed will have their hands full, but not until they blow these bubbles to even more dangerous levels. The amount of QE needed will dwarf past episodes.
Excerpts:
And this “monetary punchbowl is fueling rampant home price appreciation,” the AEI said. Its preliminary national Home Price Appreciation (HPA) index for December has risen to 11.0%, up from 6.0% a year earlier, “due to lower mortgage rates.” And the AEI estimates that the rate of HPA “will further accelerate over the coming months” – with the national average heading closer to 14% year-over-year:
Default risks are higher in the low to medium price tiers – “think first-time buyers” – since they’re “much more highly leveraged” and work-from-home is less prevalent in these income categories. And in these price tiers, “affordability continues to worsen, even in places that used to be more affordable.”
Von Greyerz: Paper Silver Is Toxic : https://www.zerohedge.com/commodities/von-greyerz-paper-silver-toxic
My Comment : So, just sit tight and wait for the PMs to win this battle
Excerpt:
Silver is normally the leading indicator for the precious metals.
Following the spectacular short squeeze in Gamestop by the Reddit group Wallstreetbets, there is now speculation that the same could happen with silver.
Yes, everything is possible. But remember that in the gold and silver markets, against the Reddit players there will be:
The BIS (Bank of International Settlement),
The Fed, ECB and other central banks
Plus the bullion banks
So a lot of fire power to beat compared to the Gamestop opposition.
SILVER – THE INVESTMENT OF THE DECADE
The silver market is one of the most toxic of all. Heavily manipulated and with bullion banks now being 100 million oz of silver short on Comex and with no liquidity in London, as Alasdair Macleod has pointed out.
Still, even if not in the next week or two, silver will win this game in the medium and long term as the dosage of paper silver shorts is much too big to survive a short squeeze.
I would not be surprised to see the 1980 and 2011 $50 high to be taken out in 2021.
So silver will lead the metals and the gold/silver ratio, now at 67, will initially reach 30 like in 2011. The long term target is likely to be a lot lower, probably 15 or below.
Expect 2021 to be the year when investors wake up to the fact that gold is not a barbarous relic but actually the best wealth protection you can hold and silver the investment of the decade, as I outlined in my October article.
WHAT TIMING: Curiously JP Morgan Downgrades Silver Stocks, But This Is Even More Stunning : https://kingworldnews.com/what-timing-jp-morgan-downgrades-silver-stocks-but-this-is-even-more-stunning/
These guys are dreaming and at some point I think they will get hurt very badly. Who really thinks Bitcoin is not in a bubble ?
I have an account with Schwab and I got a notice this morning that my silver stocks are unmarginable effective yesterday. I have used stocks like FR for margin and now Schwab says they are not marginable "due to the volatility". I can meet the margin call, but the net effect of making these stocks unmarginable will be to drive the shares lower. Talk about a manipulated market !!!
You're still young. I hope you recover. I know the treatments can be painful.
#SilverSqueeze: Physical Silver Shortage vs. Paper Silver : https://www.zerohedge.com/commodities/silversqueeze-physical-silver-shortage-vs-paper-silver
My Comment : So in the current environment, the spot price of silver is meaningless.
Excerpt:
Paper Silver Price vs. Physical Silver Price
Silver price discovery, which is how the price of silver is established by the market, is akin to a game of charades. Price discovery is based on paper silver spot trading in London and paper silver futures trading in New York. The whole charade is based on the premise of little to no real physical silver ever changing hands. If holders of paper silver were to demand delivery of physical silver, supply would quickly run out, which is exactly what is happening right now. Historically however, almost all paper silver transactions have been digitally cash settled without anyone ever seeing any silver.
As there is no central market place for the trading of physical silver, the price for physical silver has been inherited from the spot and futures paper markets with an added premium covering the costs for refining, minting, shipping, storage, insurance and retail. With the developments over the last few days of investors shifting away from paper silver and taking delivery of physical silver, the whole market construct for precious metals is changing.
Price Disconnect between Paper Silver Price and Physical Silver Price
Despite the 16.2% silver spot price increase from USD 25.58 a week ago to USD 29.72 at the time of writing, the spot price of silver still does not reflect the demand and supply on the physical silver market.
As expected, but as this excerpt from the article points out :
While the margin hike has predictably pressured the price of paper silver lower, the question is what happens now to physical silver which is completely independent of the CME's margin whims - as we noted above - and where the disconnect between paper and physical just hit an all time high as insatiable demand in the physical space is being offset by attempts to depress paper prices.
Go Big ! -
https://www.msn.com/en-us/news/politics/schumer-vows-senate-will-take-up-bold-coronavirus-bill-rejecting-gop-offer/ar-BB1diu2X?ocid=msedgntp : Schumer vows Senate will take up 'bold' coronavirus bill, rejecting GOP offer
My Comment : $Trillions in spending is penny pinching ?
Excerpt:
"Congress must pursue a bold and robust course of action. It makes no sense to pinch pennies when so many Americans are struggling," Schumer said from the Senate floor.
I want to save this for future reference -
Nancy And Paul Pelosi Bought More Than $1 Million In Tesla, Disney And Apple Calls In December : https://www.zerohedge.com/markets/nancy-and-paul-pelosi-bought-more-1-million-tesla-disney-and-apple-calls-december
My comment : Sheesh ! $1Million in Calls. How can Pelosi be impartial ? Politicians must be making a lot of money for doing so little and they are really benefiting from the Fed's largesse. Corruption at it's best.
Fed's Kaplan: to return to normal, need aggressive fiscal and Fed action : https://www.kitco.com/news/2021-02-01/Fed-s-Kaplan-to-return-to-normal-need-aggressive-fiscal-and-Fed-action.html
Translation : Spend like there's no tomorrow
Excerpt:
“We need to be aggressive in our fiscal and monetary policy actions, and I am hopeful that by doing that we will ultimately get beyond this pandemic and can then get to a more normalized environment in the months and years ahead.”
Physical vs Paper Silver -
Physical Silver Premium To Paper Hits Record As Market Tears In Two : https://www.zerohedge.com/markets/unprecedented-history-apmex-ceo-explains-why-they-halted-silver-bullion-sales-over-weekend
My Comment : Even without the silver short squeeze, silver should do very well just due to the demand-supply fundamentals which will be driven in large part by extraordinary fiscal and monetary policy. It's time to "Go Big".
Excerpts:
The shortage of physical silver is exposing a tear in the precious metals market unlike any we have seen before.
And while silver futures prices (paper silver) have 'stabilized' modestly during the day...
Physical silver prices remain at extremes...
And, as the chart below indicates, that massive premium is unprecedented...
Simply put, the establishment can print all the paper silver it wants, but there is no physical supply... and that likely ends badly for those attempting to suppress reality for too long
Yes, Virginia, The System Is Clearly Rigged : https://www.zerohedge.com/markets/yes-virginia-system-clearly-rigged
My comment : The banks bring the financial system to it's knees and they get bailed out with taxpayer money in the $Trillions. Yet small traders who make risky bets are deemed too dangerous to execute trades. Unbelievable !!!
Excerpts:
Despite what the financial media would like you to believe, the most surprising thing about last week wasn’t the fact that a bunch of beaten down stocks went flying.
No. The real controversy last week was about who was winning and who was losing. Retail people on apps like Robinhood aren’t supposed to stick it to the big boys. They are supposed to be the so-called dumb money, the schools of tiny fish that exist so whales like Softbank and Citadel have something to feast on. People who go to Davos aren’t supposed to lose money to kids from Denver. But last week, they did. That’s why the financial establishment reacted so strongly.
I am outraged by the hypocrisy of the financial services industry. Any doubt that the system is rigged has been eliminated. Why do the rich only ever get richer? Because of what happened last week.
In all my years of working in this industry, I have never heard of brokers pulling the plug on their clients because they were making too much money.
If anyone is to be banned from putting on risky trades, it should be the supposedly sophisticated hedge funds who’ve needed to be bailed again and again, not your cousin who recently bought a few shares of GME in her Robinhood app.
The fact that Ben Bernanke has been a senior advisor to Citadel and Janet Yellen has collected almost a million dollars in speaking fees from the same firm had nothing to do with it.
The issue here isn’t how the aggressive buying of stocks like Gamestop ends, because it’ll probably end badly. The issue is that nobody ever tries to stop hedge fund managers from doing the same exact thing. When they gamble with our futures, it’s called capitalism. But when retail people do it, it’s a menace to society that must be stopped.
But why have we never heard of the same thing happening to the institutions who also pursue risky trades, use margin, trade options, and often pile into the same crowded trades?
And therein lies the rub. Hedge funds and billionaires didn’t have to be restricted last year because the government intervened and used trillions of dollars of your money to make sure “the system” kept working for them. Just like it had in 2019, 2008 and 1998.
Ordinary people don’t get that kind of protection, so they aren’t allowed to play. The billionaires who build ridiculous mansions too close to the water get free flood insurance, but you are a mere renter, so you don’t qualify.
Silver Futures Soar 8%, Rise Above $29 As Reddit Hordes Pile In : https://www.zerohedge.com/markets/reddit-preparing-unleash-worlds-biggest-short-squeeze-silver
My Comment : Silver up but not dramatically. The night is still young.
This will not be easy and it will take patience and time. There will be counter attacks as per the excerpt below. Will they halt all silver trading if they start to lose control ? We'll see.
Excerpt:
So as silver approaches $30, keep an eye on major price slams, emerging either out of central banks who desperately need to keep precious metals lower, or the BIS itself, whose Benoit Gilson will have a busy day tomorrow.
A Silver Squeeze Primer
A special free, public Sunday podcast.
https://www.tfmetalsreport.com/podcast/10668/silver-squeeze-primer
Please listen to, tweet, retweet and forward this free podcast recorded today as a public service for all interest in silver and the brewing silver short squeeze.
As you know, we stand at the start of what could be an historic week in the precious metals. There is a growing grassroots movement to tackle the Bullion Banks and put an end, once and for all, to their fraudulent fractional reserve and digital derivative pricing scheme. We'll have more on this current system in the days ahead but, for today, this podcast was recorded with three goals in mind:
1) To remind and explain the forces that are aligned against our effort
2) To stress the persistence and patience that will be required to be successful
3) To explain the potential effectiveness of three different investment alternatives
And this chart (see link above) is very helpful in explaining the why the bullion banks that monopolistically control the price both silver and gold are ripe to be squeezed.
Two other things...
In describing the fractional reserve bullion banking price scheme, I like to reference this scene from "It's A Wonderful Life". While you may recognize the scene, you may have never really stopped to consider that fractional reserve banking remains at the center of the global monetary system...not just bullion banking. Keep that in mind as you watch this clip.
And then one more thing regarding trading tonight, tomorrow and this week. Back in late 2014, the CME Group suddenly felt the urge to implement trading collars for COMEX futures contracts. This seemed odd at the time as prices were low and volatility was minimal. We wondered back then if the CME was simply preparing for the eventuality of a short squeeze in their derivative markets. Were they preparing in advance for a day like tomorrow? Maybe. At any rate, if you want to read more on this, the link below contains embeds to the actual CME press releases. If interested, you might look them over before trading resumes this evening at 6:00 pm EST.
https://www.tfmetalsreport.com/blog/6443/comex-institutes-trading-collar...
Thanks for listening. Let's hope we have a fun and exciting week.
TF
"This Could Take The Dollar Down", Alasdair Macleod Warns "There's A Real Crisis In The Winds" : https://www.zerohedge.com/markets/could-take-dollar-down-alasdair-macleod-warns-theres-real-crisis-winds
My Comment : So how would the Fed respond to a collapsing US$ and a bursting of the stock market bubble ? Print more money ? That would only weaken the US$ more and encourage even more speculation in stocks. How do you sustain the unsustainable ?
Excerpts:
Macleod explains, “You can see how, through interest rates, the future of the dollar is actually tied to the future of financial asset markets..."
" If you get a pop in the bubble, and there is no doubt equity prices are wildly overvalued compared to the economic outlook...
Quite honestly, there is no alternative but for markets to correct very, very heavily. When that happens, you are going to have portfolio outflows out of the dollar... The effect of that will be to take the dollar down along with financial asset prices...
We can get the collapse of the dollar happening very, very rapidly.”
Macleod says the money printing we are seeing now globally is on a scale and pace never seen in world history, and at the center of it all, is the U.S. and the new administration in Washington, D.C. Macleod says,
“From last March until today, we can see a total of $8 trillion worth of QE (money printing) required to pay for all the programs, and that includes Biden’s $1.9 trillion, which I know has not been authorized—yet. The figures are enormous. There is absolutely no way that the dollar can hold its value with that level of money printing. That’s just to deal with Covid. Biden also wants to finance green spending . . . . How much more spending on top of that goodness only knows. The thing is a mess, and it’s not just America. When I look at Europe . . . they are incompetent . . . and when you get an incompetent government like that, forget it. The Eurozone banks are on the verge of bankruptcy, I mean beyond insolvency. They are on the verge of bankruptcy. How do you handle a situation like that when you’ve got an incompetent bunch of bureaucrats at the top? This is going to happen, and I am surprised it hasn’t happened yet.”
Macleod says at some point, “You will get a stampede out of the dollar . . . . What the Fed has done is they have tied the future of financial assets with the currency. When one goes, they both go.”
Macleod also says the best protection for the common man for the financial turmoil the world is facing is to “have some sound money like physical gold and silver.”
If you had to trade GameStop now, this is how to do it – Gareth Soloway : https://www.kitco.com/news/video/show/Market-Analysis/3192/2021-01-29/If-you-had-to-trade-GameStop-now-this-is-how-to-do-it--Gareth-Soloway#_48_INSTANCE_puYLh9Vd66QY_=http%3A%2F%2Fwww.kitco.com%2Fnews%2Fvideo%2Flatest%3Fshow%3DMarket-Analysis
Excerpt:
While GameStop still has upside to $500, traders need to be aware that traditional technical and fundamental analysis has limited use in this type of a situation, said Gareth Soloway, chief market strategist at InTheMoneyStocks
“When you get into these types of market environments you have to realize that technicals don’t matter anymore, and fundamentals don’t matter anymore, and as a trader you have to recognize that and stand back,” Soloway said.
re: SLV vs PSLV -
https://www.zerohedge.com/markets/reddit-preparing-unleash-worlds-biggest-short-squeeze-silver
Excerpt:
Edit: for the part of your purchases going into shares, some people recommend PSLV because they think SLV might start lying about having the silver in their vault. Or that the custodian will be double counting, ie claiming that the same silver belongs to multiple people (banking on the fact that people wont all try to get their silver at once). So if you buy SLV shares and calls, that's great. But I think it could be prudent for us to buy options in SLV (no options on PSLV) and shares in PSLV. It all depends on how paranoid you want to be. There is a lot of paranoia in the precious metals world.
Amen, brother ! It would be good for the likes of JP Morgan to get their comeuppance. The real culprit in all of this is the Fed and their day of reckoning is coming when they lose all credibility.
"Everyone Is Afraid Ahead Of The Open" - Reddit-Raiders Spark Nationwide Physical Silver Shortage : https://www.zerohedge.com/markets/reddit-preparing-unleash-worlds-biggest-short-squeeze-silver
My Comment : Should be an interesting open on Silver tomorrow. My one concern is that the regulators will shut down all trading in silver to protect the naked shorts like JP Morgan.
Excerpt:
Update (1030ET): It would appear the run on silver has begun. With the market closed, traders have rushed to secure some exposure to silver ahead of what WSB suggests could be "the world's biggest short squeeze" and that has left bullion dealers
As we noted below, the premium for physical silver had soared late Friday and into Saturday (after the massive flows into SLV), but as Sunday rolled around, bullion dealers are now facing massive shortages of physical coins.
https://twitter.com/GregMannarino
Bullion dealers running out of Silver. APMEX: Due to unprecedented demand on physical silver products, we are unable to accept any additional orders on a large number of products, until global markets open Sunday evening.