![]() This is contrary to the belief that the silver squeeze will hurt banks and funds like how the Reddit short squeeze in stocks resulted in huge losses for some hedge funds. This ride up in silver prices allows them to hedge their risk at a much higher profit and due to the larger number of buyers available, also allows them to get out of their positions even earlier and at a tidy profit. For example, a trader in a bank may have bought a large amount of silver from a fund but has yet to sell it out so as not to move the silver price too drastically. In other words, these short futures positions are being offset with physical silver held in their inventory.Īnother point to note, we do not know what is on the trading book of each bank and they might have positions not pushed out to the market yet as they have taken on a sizable position. Most of these short future positions are in fact hedging against physical silver exposure or miners securing prices in future months to deliver mined silver. For example, based on the short positions reported on 9 February for commercials, total short positions is 116,717 contracts. At a glance, using the same lenses as how the Reddit retail investors view heavily shorted stocks, silver would seem like a prime candidate for a short squeeze for both commercial and non-commercial positions. Refer to Table 1 for the COTR for silver (this data is readily available to anyone). The shorts reported by the Chicago Mercantile Exchange (CME) or Commitment of Traders Report (COTR) does not mean that all of these shorts are speculative positions or positions that traders have placed to bet that prices will go south for them to make a profit. The commodities market doesn’t work like the stock market. Why didn’t this work with the silver market? Japan Exchange Group: Reinventing Japan’s Precious Metals Derivatives Marketīy Ryoichi Seki, General Manager, Business Development, Osaka Exchangeīy Kerry Stevenson, Founder, Gold & Alternative Investments Conference.#SilverSqueeze – What Actually Happened and Why it Didn’t Work Out as Plannedīy Brian Lan, Managing Director, GoldSilver Central.Thailand: Gold Provides Liquidity Amid Pandemicīy Pawan Nawawattanasub, CEO, YLG Bullion International.Thailand’s Crucial Role in the ASEAN Gold Marketīy Nuttapong Hirunyasiri, CEO, MTS Gold Group.Thailand’s Gold Market: An Introductionīy SBMA, with contributions by Ross Andrew Friedman.Renminbi Internationalisation and its Effects on Gold.India to See Strong Uptick in Jewellery Demandīy Chirag Sheth, Principal Consultant, Metals Focus.India’s Surge in Gold Imports: Optimism or Speculation?īy Srivatsava Ganapathy, CEO, Eventell Global Advisory.World Gold Council: Tremendous Potential for Gold in 2021.Order our FREE Silver Investor Report today. See the smartest way to enter the silver market now. The only question left, then, is not, “When is the price of silver going up?” But…īecause current gold and silver prices are a GIFT compared to where they’re headed. Silver’s market fundamentals are that strong-#SilverSqueeze or no #SilverSqueeze. What’s most impressive? That despite silver market manipulation and potential Fed silver price suppression, the spot price of silver has stealthily shot up. See him and Eric Sepanek give their full analysis of the factors influencing silver prices in the video above. “We do have a peek at the future: Venezuela is starting to issue million-dollar bills that are worth 50 cents in the U.S.,” said precious metals advisor John Karow. Everywhere you look, prices are up: at the gas station, at the grocery store, on the stock market, and even in your neighborhood. Gold and silver prices aren’t the only proof of inflation, either. The current price of silver is evidence that inflation is very real. Silver prices are, arguably, too strong for the Fed already. Closing at $26.37 an ounce on March 17, 2021, the spot price of silver has jumped an astounding 106.5% in just a year. Recall that the price of silver closed at $12.77 an ounce a year ago on March 17, 2020. ![]() Why? Because when gold and silver prices rise too high, too fast, investors lose confidence in the dollar. The Fed has a strong motivation to keep silver prices low. Silver price manipulation isn’t the only force working against the price of silver: See for yourself how many times the big bullion banks have been caught for silver price manipulation. Here’s the thing you have to understand about silver prices… Clients have been asking us the same question. You keep hearing about the #SilverSqueeze and wondering, “When is the price of silver going up?” You’re not alone. Eric Sepanek, Scottsdale Bullion & Coin Founder & Senior Precious Metals Advisor ![]()
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