mother of all short squeezes?

derryb

"What kind of short squeeze will develop when Chinese banks are forced to go onto the open market and buy physical silver to support Chinese investors when they switch from paper silver to physical silver?"


Chinese Silver Investment Going Parabolic

Pokermandude

That's scary... scary good for silver!

FistFullOfDollars

What flavor of Chinese Kool-Aid are you drinking today?

fastrudy

new, improved Soy Kool-Aid™

Meltdown

I keep hearing the question "what happens when all those paper investors demand their physical holdings?"

Seems to me that everyone is content with trading in paper silver. It's an interesting "what if" though...

Baley

Back in the old days trading commodity futures, we thought to squeeze the shorts by taking physical delivery of sugar, lumber, oil, and one time, 5000 gross of eggs

boy, the yolk was on us with that last one

derryb

<< <i>I keep hearing the question "what happens when all those paper investors demand their physical holdings?"

Seems to me that everyone is content with trading in paper silver. It's an interesting "what if" though... >>


Increasing premiums for physical are a result of greater redemption demand. Most holders of paper don't ever expect to demand the physical, they hold the paper for ease of trading. It would take a major economic event for the majority of them to demand conversion. Speculators tend to sell the paper rather than convert it.

roadrunner

At $30 per oz, anyone can easily store 1,000 to 5,000 oz of silver in close proximity to their homes with no added expense other than finding good
hiding places such as fake walls, a deep hole, etc. You can't do that with oil, sugar, eggs, lumber, copper, wheat, coffee, etc.

roadrunner

gecko109

<< <i>At $30 per oz, anyone can easily store 1,000 to 5,000 oz of silver in close proximity to their homes with no added expense other than finding good
hiding places such as fake walls, a deep hole, etc. You can't do that with oil, sugar, eggs, lumber, copper, wheat, coffee, etc.

roadrunner >>





I can walk around with $700 worth of silver in my pockets without anyone even knowing. I'd love to see someone do that with $700 worth of eggs, oil, sugar, or lumber.

cohodk

If paper blows up, the spot prices will collapse. Always does.

jmski52

There's enough people invested in paper that it never really blows up. It may take a hit and scare a bunch of people, and longterm there might be a few less believers in paper and a few more believers in gold, but it would take a massive problem worldwide to destroy paper in a significant way.

That's not to say it couldn't happen...

cohodk

it would take a massive problem worldwide to destroy paper

I hear we already have that. I hear it on TV, on radio, on the internet, on these boards.

OPA

<< <i>it would take a massive problem worldwide to destroy paper

I hear we already have that. I hear it on TV, on radio, on the internet, on these boards. >>



Really? I wonder what they are using to wipe their arses with?