Zeev's Turnips Patch-No Politics (ZEEV)

[basserdan]

*** Silver related post ***

ss nem again here
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Hi opnion,
If that means you reshorted NEM, I would caution you to be careful.

I believe there is considerable underlying demand for physical silver and one that may result in a silver short squeeze of sorts, and while I realize NEM is mostly gold, I have to wonder what the PoG would do if the PoS rallies a dollar or more over the near term. I think it reasonable to presume that gold would, to some extent, follow silver's lead.

I got the following email this morning from what I consider to be a credible source.

"Yesterday Goldman Sachs bought 1300 March silver and sold 1300 May silver on a spread. Today, Goldman Sachs bought 2 to 3 thousand April 750 silver calls, which expire on
March 25th."

That GS bot March futures indicates to me that (a) one or more of their customers wants delivery of the physical silver this month or (b) they are moving their short positions from March to May delivery or (c) some of both. It's the large purchase of April $7.50 calls that leads me to think that the the price of silver is going higher in the forseeable future.

Fwiw, I bot some add'l shares of WTZ this morning ..... just in case.

Good luck.