SilverSqueeze2

derryb

The stresses on the physical silver markets are apparent in the persistently high coin premiums and a drain of over 37 million ounces from the Comex since the February SilverSqueeze.

Oh boy! Even higher premiums?

blitzdude

HODL! Not mine, some bloke from down under I saw earlier today. Impressive hunk of gutter.

FHC

I just read that article. Wonder if it will affect the price or just the premiums.

DrBuster

Yes the reddit boys like to show off, apes pound the chest hard

derryb

@FHC said:
I just read that article. Wonder if it will affect the price or just the premiums.

Those that set spot price will fight hard to keep it low. Any increase in physical demand will first affect premiums and if demand becomes great enough it can put a damper on available silver in COMEX vaults. This is where you hurt the COMEX - increase demand (delivery) of what's in their vaults. Their vault holdings likely have many owners such as SLV and who know who else it has been "leased" to.

MsMorrisine

@derryb said:

Those that set spot price will fight hard to keep it low.

why?

derryb

@MsMorrisine said:

@derryb said:

Those that set spot price will fight hard to keep it low.

why?

because they do not want the demand for physical silver to determine the price of paper contracts. They like it the other way around because it puts them in control of price. With this control they continue to pocket billion$ in the ups and downs they create. They have so far succeeded in keeping it low in the face of rising premiums. At some point they can lose control, but this will depend on increased demand of deliveries from the COMEX vaults. If delivery demand grows large enough look for the bullion banks to let the spot price rise.

It is the growing difference between spot and physical prices that creates greater demand for delivery on the cheaper paper contracts. If one can buy the contract at $26 oz. and then take delivery, he can sell that silver for over $35 oz.

Higher and higher premiums (spread) are what will break the bank vaults at the COMEX. Because of this the longer premiums hold and the higher they go, the bullion banks will have no choice but to eventually let spot rise in tandem. And as spot rises, so will demand and so will physical prices (not necessarily premiums). Wash, rinse, repeat and you find yourself in the middle of a true bull market.

blitzdude

I'm guessing tomorrow, the next day and the day after that will all remain the same.

If they are successful in pumping it higher (It's already artificially pumped) be prepared to sell.........and sell very, very fast lol

Jimnight

I liked the article.

derryb

Let's see how physical prices respond. Shot from today's APMEX for future comparison. Current spot is 26.35.

MilesWaits

Squeeeeze hard, please! Thanks for the article.
Minimum of $12 an ounce premium on ASE’s right now at Provident.
On a positive note, my 1 ounce gold greyhound is on the way!

blitzdude

@DrBuster said:
Yes the reddit boys like to show off, apes pound the chest hard

I feel bad for most of them. The majority are new to the game and have no idea that when they go to sell they won't be recouping those insane premiums they just paid. They'll need gutter to go up 40-50% from here just to break even.

carew4me

@blitzdude said:

@DrBuster said:
Yes the reddit boys like to show off, apes pound the chest hard

I feel bad for most of them. The majority are new to the game and have no idea that when they go to sell they won't be recouping those insane premiums they just paid. They'll need gutter to go up 40-50% from here just to break even.

Poor bastards. turning FRNs into PMs. I wish they would come to this forum to be properly schooled.

PerryHall

@blitzdude said:

@DrBuster said:
Yes the reddit boys like to show off, apes pound the chest hard

I feel bad for most of them. The majority are new to the game and have no idea that when they go to sell they won't be recouping those insane premiums they just paid. They'll need gutter to go up 40-50% from here just to break even.

Why is it necessary to repeatedly call silver by the name "gutter" or "gutter metal"? It's irritating and it makes you sound ignorant.

derryb

@PerryHall said:

@blitzdude said:

@DrBuster said:
Yes the reddit boys like to show off, apes pound the chest hard

I feel bad for most of them. The majority are new to the game and have no idea that when they go to sell they won't be recouping those insane premiums they just paid. They'll need gutter to go up 40-50% from here just to break even.

Why is it necessary to repeatedly call silver by the name "gutter" or "gutter metal"? It's irritating and it makes you sound ignorant.

Bought at $45?

ricko

I would really like to find some silver in the gutter.... Usually only find copper or clad there... Cheers, RickO

cohodk

@derryb said:

@PerryHall said:

@blitzdude said:

@DrBuster said:
Yes the reddit boys like to show off, apes pound the chest hard

I feel bad for most of them. The majority are new to the game and have no idea that when they go to sell they won't be recouping those insane premiums they just paid. They'll need gutter to go up 40-50% from here just to break even.

Why is it necessary to repeatedly call silver by the name "gutter" or "gutter metal"? It's irritating and it makes you sound ignorant.

Bought at $45?

Well, some folk on this forum were touting silver at that price saying it was going much higher while promoting conspiracy theories, physical shortages and general doom and gloom from foreign based blogs. Right derryb?

I believe they were also warned about believing in the before mentioned nonsense.

metalmeister

The real world is leaving the station. Paper holders will end badly.

carew4me

https://www.cnbc.com/2021/04/29/gold-or-silver-heres-how-to-invest-in-precious-metals-cio.html

from Chris Wyllie, CIO at London based Connor Broadley Wealth Management (another dumb Ape apparently?)

sum u boys are right smart but imma listen a wee bit more to the bloke who is paid to manage peoples wealth

Higashiyama

@carew4me said “ from Chris Wyllie, CIO at London based Connor Broadley Wealth Management (another dumb Ape apparently?)”

Although he doesn’t seem to be promoting conspiracy theories. As far as I can tell his message is: (a) gold faces greater downside risk than silver in a scenario of rising interest rates and (b) the industrial uses of silver add to its upward potential, particularly in the context of an improving global economy.

rooksmith

You are absolutely right. there have been several recent spikes in metal prices as well as a premium for physical. (and one upcoming predictable spike) - On May 1st the ETF's will need to actually buy physical bullion on May1 based on the current ETF futures market. Physical prices will soar!

Increases Copper, Silver, Gold, Platinum and Palladium prices should spur interest in collecting.

Silver Squeeze 2.0 Video link:
https://youtube.com/watch?v=IsGGrPArxqE

• Sell Bitcoins
  Buy RealCoins -

blitzdude

@ricko said:
I would really like to find some silver in the gutter.... Usually only find copper or clad there... Cheers, RickO

Have faith and keep checking. It's out there.

@PerryHall said:

@blitzdude said:

@DrBuster said:
Yes the reddit boys like to show off, apes pound the chest hard

I feel bad for most of them. The majority are new to the game and have no idea that when they go to sell they won't be recouping those insane premiums they just paid. They'll need gutter to go up 40-50% from here just to break even.

Why is it necessary to repeatedly call silver by the name "gutter" or "gutter metal"? It's irritating and it makes you sound ignorant.

Some would say continuously repeating conspiracies about the comex implosion or the great physical shortage in every other post is irritating and makes one sound ignorant. To each his/her own. It's a free country (mostly). RGDS!

blitzdude

@cohodk said:

@derryb said:

@PerryHall said:

@blitzdude said:

@DrBuster said:
Yes the reddit boys like to show off, apes pound the chest hard

I feel bad for most of them. The majority are new to the game and have no idea that when they go to sell they won't be recouping those insane premiums they just paid. They'll need gutter to go up 40-50% from here just to break even.

Why is it necessary to repeatedly call silver by the name "gutter" or "gutter metal"? It's irritating and it makes you sound ignorant.

Bought at $45?

Well, some folk on this forum were touting silver at that price saying it was going much higher while promoting conspiracy theories, physical shortages and general doom and gloom from foreign based blogs. Right derryb?

I believe they were also warned about believing in the before mentioned nonsense.

Thanks for reminding and perhaps shedding some light as to why SOME continue to work so hard performing those very same actions when it's 10 years later and were sitting at half the price.

derryb

@blitzdude said:

Thanks for reminding and perhaps shedding some light as to why SOME continue to work so hard performing those very same actions when it's 10 years later and were sitting at half the price.

You could be buying at half the price if you had only sold when you should have. don't blame others because you bought and held. By the way, what you holding out for?

blitzdude

@derryb said:

@blitzdude said:

Thanks for reminding and perhaps shedding some light as to why SOME continue to work so hard performing those very same actions when it's 10 years later and were sitting at half the price.

You could be buying at half the price if you had only sold when you should have. don't blame others because you bought and held. By the way, what you holding out for?

I've been selling physical regularly since July 2020 and putting the proceeds in PSLV. With premiums so far out of wack it's been a no brainer. Spot increases I win, premiums decrease I win, Spot decreases it's a wash. The only thing that's guaranteed is premiums are not increasing from here. Play the odds, It's certainly not rocket science (or Bulgarian fantasy land).

softparade

Silver rocks!

edwardjulio

I have a green monster box and wondering if sell price of $35.00/coin is high/low/just right.

carew4me

@edwardjulio said:
I have a green monster box and wondering if sell price of $35.00/coin is high/low/just right.

Just Right.

Jinx86

@edwardjulio said:
I have a green monster box and wondering if sell price of $35.00/coin is high/low/just right.

You never go broke taking a profit.

DrBuster

So was there something supposed to happen to spot price this morning or is it this evening when the comex dominoes fall?

derryb

@DrBuster said:
So was there something supposed to happen to spot price this morning or is it this evening when the comex dominoes fall?

Silver squeeze is not about controlling spot price. It's about creating higher physical demand/prices that hopefully reach a point where they convince paper speculators to demand delivery of the paper promises they got at the cheaper spot price. This in turn could lead to a "failure to deliver" by COMEX vaults where only a very, very small percentage of physical metal vs. promises (contracts) exists. COMEX works on the same "leveraging" theory as do commercial banks: "Not everyone could possibly all want their money (or precious metal) at the same time." Works well until fear drives a run on the bank. Silversqueeze is all about trying to create a run on the bullion bank.

To avoid a run on the bullion banks (if and when it develops), the big bullion banks would have no choice but to decrease the spread between spot and physical by raising the spot price rise as they have no control over the physical bullion free market's price. And yes, the bullion banks do indeed raise and lower spot via coordinated trading with one another - that's how they make their money in the futures market.

Higher physical demand/prices do not happen overnight. They grow through momentum just as we saw with silversqueeze1. Ironically, the higher prices (premiums) created by silverqueeze1 still exist. That is a promising sign for those hoping to see true market price discovery return to the precious metals markets.

derryb

@derryb said:
Let's see how physical prices respond. Shot from today's APMEX for future comparison. Current spot is 26.35.

Four days later, spot is down to 25.95, premiums creeping up?

Higashiyama

The spread on silver eagles is breathtaking.

Kitco is now selling 1000 ounce good delivery bars, apparently “in stock”. This provides a more apples to apples comparison with spot. They are quoted at $ 29,210. Perhaps they would go even lower if you wanted to buy 5 bars, ie, a standard contract amount.

Higashiyama

It looks like APMEX is also selling 1000 ounce bars—somewhat under $30 per ounce, so well above spot, but far below the smaller units.

(It looks like other sources may have them available for about $28 per ounce. It doesn’t seem that they are hard to obtain )

derryb

@Higashiyama said:
The spread on silver eagles is breathtaking.

Kitco is now selling 1000 ounce good delivery bars, apparently “in stock”. This provides a more apples to apples comparison with spot. They are quoted at $ 29,210. Perhaps they would go even lower if you wanted to buy 5 bars, ie, a standard contract amount.

And a 10,000 oz. block of silver would be even closer to spot. When looking for an "apple" to compare to spot look no further than what is commonly bought. The mentality that "spot" is the true value of silver is a misconception that will be eventually discarded by a growing premium spread. The true value of silver is the price that is paid for actual silver. If I offer you a "promise" to sell you 1,000 oz. of silver at $10 an oz. at the end of 25 years, does that make the current value of silver $10? And if I've got only 100 oz of actual silver in my safe to cover that promise what does that do to the value of that promise?

cohodk

@Higashiyama said:
It looks like APMEX is also selling 1000 ounce bars—somewhat under $30 per ounce, so well above spot, but far below the smaller units.

(It looks like other sources may have them available for about $28 per ounce. It doesn’t seem that they are hard to obtain )

Agreed. I see a large dealer with a sell price on 1000 oz bars at spot+70c. Not sure if he has any presently, but thats what his buy/sell list is showing.

derryb

@cohodk said:

I see a large dealer with a sell price on 1000 oz bars at spot+70c. Not sure if he has any presently, but thats what his buy/sell list is showing.

LOL. You should buy them and then cut them into 1 oz. cubes, stamp your mug on them and try to sell for a higher premium. Or would the 1 oz. buyers just choose to continue paying more premium for better quality 1 oz. products? There's a reason why large silver bars, generic silver and "junk" silver sells for less than refined quality products.

Higashiyama

@derryb said: "The true value of silver is the price that is paid for actual silver."

I don't disagree with this statement, but do you mean the actual price paid by an industrial user who buys in large quantities, or the retail consumer who may want to stack some ASEs?

The price for a 1000 ounce bar is just as real as the price for the ASEs. The futures market (and the spot concept) was developed in the context of the industrial buyer/seller, not the small retail buyer.

derryb

@Higashiyama said:
@derryb said: "The true value of silver is the price that is paid for actual silver."

I don't disagree with this statement, but do you mean the actual price paid by an industrial user who buys in large quantities, or the retail consumer who may want to stack some ASEs?

The price for a 1000 ounce bar is just as real as the price for the ASEs. The futures market (and the spot concept) was developed in the context of the industrial buyer/seller, not the small retail buyer.

And the spot price is just as real for buyers of contracts. But, since those of us here are investors and stackers and not industrial users or futures market buyers, for us the actual price of silver is its retail price.

cohodk

@derryb said:
@cohodk said:

I see a large dealer with a sell price on 1000 oz bars at spot+70c. Not sure if he has any presently, but thats what his buy/sell list is showing.

LOL. You should buy them and then cut them into 1 oz. cubes, stamp your mug on them and try to sell for a higher premium. There's a reason why large silver bars, generic silver and "junk" silver sells for less than refined quality products.

Better my mug on them than yours---i wouldnt even be able to give them away then.

Yes....some folk like to pay 25c for a gumball, while others pay $2.50 for a bag of 100 gumballs. Gum is gum.

But why would i cut them into 1000 cubes? You keep saying things will collapse and there will be true price discovery. It is better to own 1000 oz in a bar or 800 oz in ASEs? Wouldnt you want more oz if you really thought the price was going higher?

derryb

cohodk

Stay blissful my friend.

blitzdude

HODL!

DrBuster

I do give the reddit crowd credit for the billboard action across the board. My DOGE for sure loves it, ha.

blitzdude

It's spreading like a fungus lol

TwoSides2aCoin

@edwardjulio said:
I have a green monster box and wondering if sell price of $35.00/coin is high/low/just right.

I'll take it if, you're shipping is within a day. I'm having to pay higher and waiting 7 weeks.

derryb

Sprott: SilverSqueeze Making an Impact.

MsMorrisine

Making an impact?

It is struggling with 28

derryb

@MsMorrisine said:
Making an impact?

It is struggling with 28

LOL, premiums aren't struggling, Physical prices are not struggling. COMEX inventories down, PSLV inventories up.

blitzdude

Silver was just over $28 at the start of this "squeeze" now it's under $28. Doesn't seem like much of a "squeeze" happening to me. Premiums up (mostly on ASEs) but that's simply because the mint hasn't produced one in nearly 2 months. Premiums will decrease soon. Guaranteed.

derryb

@blitzdude said:
Silver was just over $28 at the start of this "squeeze" now it's under $28. Doesn't seem like much of a "squeeze" happening to me. Premiums up (mostly on ASEs) but that's simply because the mint hasn't produced one in nearly 2 months. Premiums will decrease soon. Guaranteed.

The squeeze was put on physical not your imaginary metal. Physical continues to respond in both supply and demand. Even the COMEX vault supply is dwindling.