iShares Silver Trust (SLV)

[AlwaysRed]

They have the delivery open interest for Dec down to 2018 contracts:

https://www.cmegroup.com/markets/metals/precious/silver.volume.html

I am sure that they move as many contracts forward as they can and they leave the actual PHYSICAL deliveries for last.

You see that for March there are 126,340 contracts due. Here is what that equates to:

126,340 X 5,000 = 631,170,000 MILLION ounces of silver
631,170,000 X current silver price of say 24 for easy math = $15,792,500,000. So that is 15 BILLION dollars for delivery in March. Now a lot of that will get moved forward to May. You can watch it happen live when we get there. You have to pay attention.

So right now there are 2018 contracts left for Dec and I am sure that all of those are for PHYSICAL delivery. They leave those for last. And they need to be fulfilled this month. So lets look at that small number. LOL

2018 X 5,000 (There are 5000 ounces of silver for every contract) = 10,090,000 ounces left for deliver for Dec
10,090,000 X current price of 24.50 = $247,205,000. So that is over 247 MILLION dollars worth of PHYSICAL silver that needs to be delivered still during the month of Dec.

If those contracts 1 year ago when the price of silver was 23.50 they are losing 1 dollar per ounce. So that would be over 10 MILLION dollars at the current 24.50 price. It would have been a 20 million dollar loss Friday at 25.50. LOL

So do they get the price back to last years price where the metal was contracted?:

https://www.bullionvault.com/silver-price-chart.do

Look at the one year chart on delivery months.

For Dec it was between 23 and 24 dollars per ounce.

There is a method to the madness.

Now it will be difficult to predict next year as they were increasing interest rates and the price of silver reflects that. For instance on March 5th the price of silver was 20 dollars. I am sure they were buying as much physical as they could at the time so they could profit on contracted prices. Buy physical at 20 and sell at a contracted 24. So I certainly do not think they are going to be smashing the silver price down to 20 this upcoming March. They won't have to. So the charts wont be as accurate because of the strength of the dollar due to interest rate hikes.

I hope you see this and I hope this makes sense.

Good luck