Wallstreetbets eye up SLV

[Kman]

Is silver shorted because it's an easy way to make money?

Just how profitable has shorting silver been? is there any way to know

If you could control a market and print money from it without anyone really objecting (industrial use certainly don't mind low prices) - I can understand why that would happen

Or is there actually a grander conspiracy behind it 

Is it that if gold and silver were allowed to attempt to find fair value they would be like a black hole for currency and inflate exponentially, Is that what we're seeing in crypto now 

[Spark268]

If you short it, you start selling silver, say at $20 an announce.

If you sell enough of it, you may panic others into selling.

This then activates stop losses, and margin-calls on other paper holders of silver, causing further sharp price drops. This then creates a vicious circle.

You can then hoover up silver at knock-down prices, such as when it went to $11 an ounce last march, and you have made a huge profit in the process.

Edited February 7, 2021 by Spark268

[HawkHybrid]

26 minutes ago, Spark268 said:

This then activates stop losses, and margin-calls on other paper holders of silver, causing further sharp price drops.

 

which margin calls will it trigger? who is going long silver from below $20/toz with insufficient

margin to buffer against a temporary drop?

(the theory sounds great but none of it makes any practical sense)

 

HH

Edited February 7, 2021 by HawkHybrid

[Spark268]

if you are long paper silver via futures, you don't have to put the full money down to the value of your position, only a percentage, say 10%. 

So if the notional value of your position is $10million, you would have to put down a margin of $1million.

If the price of silver then falls 10%, you have to put in another 1million. If you fail to do this, the exchange will sell your position for you. Similarly, the exchange could also decide to increase the margin, and you have to put up that extra money or face the same result.

in practice, the initial margin is higher than the valuation margin, the actual details are here:

https://www.cmegroup.com/trading/metals/precious/silver_performance_bonds.html#sortField=exchange&sortAsc=true&clearingCode=SI&sector=METALS&exchange=CMX&pageNumber=1

 

[Arganto]

43 minutes ago, Kman said:

Is silver shorted because it's an easy way to make money?

Just how profitable has shorting silver been? is there any way to know

If you could control a market and print money from it without anyone really objecting (industrial use certainly don't mind low prices) - I can understand why that would happen

Or is there actually a grander conspiracy behind it 

Is it that if gold and silver were allowed to attempt to find fair value they would be like a black hole for currency and inflate exponentially, Is that what we're seeing in crypto now 

Could it be a very long plan set out over a protracted period, allowing certain groups to increase their holdings massively but not so quickly that it draws too much attention? There could be knowledge that 'they' have that suggests a massive precious metal holding will be hugely beneficial at a future date. If you think about it precious metals and land/property have been a mainstay for the so called elites for some time, it's why the small fry that watch the big sharks emulate this and move in and out of other commodities as more short term propositions.

I'm possibly talking beeswax and someone more versed will squash the hypothesis, but it does make sense if there is truth to it. 

 

[HawkHybrid]

17 minutes ago, Spark268 said:

if you are long paper silver via futures, you don't have to put the full money down to the value of your position, only a percentage, say 10%. 

So if the notional value of your position is $10million, you would have to put down a margin of $1million.

If the price of silver then falls 10%, you have to put in another 1million. If you fail to do this, the exchange will sell your position for you. Similarly, the exchange could also decide to increase the margin, and you have to put up that extra money or face the same result.

in practice, the initial margin is higher than the valuation margin, the actual details are here:

https://www.cmegroup.com/trading/metals/precious/silver_performance_bonds.html#sortField=exchange&sortAsc=true&clearingCode=SI&sector=METALS&exchange=CMX&pageNumber=1

 

 

people know the mechanics of how a margin call works.

the question was why would anyone be so stupid as to take a sizable long position on a commodity

and not have sufficient buffer for temporary volatility spikes down. it's not like the silver price can get

to zero and stay indefinitely at zero, it's not like silver is not known for being able to be extremely

volatile. anyone who wants to take a sizable position in a volatile commodity like silver can simply buy

physical and not have to ever worry about margins calls.

 

the simple answer is that silver is shorted because people(who are willing to put their money where their

mouth is) think that the price will drop enough for them to make a profit.

 

HH

Edited February 7, 2021 by HawkHybrid

[Spark268]

ok

[Oldun]

 

[sixgun]

[5huggy]

On 07/02/2021 at 12:27, HawkHybrid said:

those who claim silver is worth $1k/toz in the near future should put their money where their mouth is.

Have done! 😉👍  TA!

[5huggy]

15 minutes ago, sixgun said:

You been peeking at me and My Missus! ?? 🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣

[Spark268]

It turns out that even before WSB got in the act, there was a run on Silver. The various Silver ETFs hold their silver in London, and have managed to soak up >85% of all the actual physical stocks there. The LBMA states that c1 billion ounces of silver, in its various forms (bars, coins etc) is held in London, and 900mln ounces of it are held by ETFs.

https://www.bullionstar.com/blogs/ronan-manly/houston-we-have-a-problem-85-of-silver-in-london-already-held-by-etfs

Meanwhile, it was only a matter  of time, but whilst we're at it:

Edited February 9, 2021 by Spark268

[sixgun]

 

[Spark268]

is that the same JPM that's the biggest player for silver on the Comex, Is also the authorised participant for AND the custodian for SLV?

 

Edit: JPM is not allowed to encumber/hypothicate/sell the silver in SLV under the custodian agreement, rather it has no liability if the silver delivered to it, is fake or impure etc as I understand it. 

Meanwhile, it looks like the WSB crowd has now gone to pot, literally

Edited February 11, 2021 by Spark268

[sixgun]

 

[longmore]

^^^^ Brilliant

[sixgun]

Andrew Maguire will be talking with the Reddit Wallstreetsilver apes

 

Edited February 17, 2021 by sixgun

[Spark268]

i watched the one with Roman Manley, the interviewers in the videos are pretty knowledgeable

[sixgun]

[Cointreau]

This really is an existential battle. A fight to the death. I am one of the mosquitos and I won't stop biting.

https://www.youtube.com/watch?v=wtxr_yXDXTo

[sixgun]

 

[Chrissyblards1]

13 minutes ago, sixgun said:

 

Put money into a vault that will look after your wealth. That’s almost like trusting your bank. 💀

[sixgun]

5 minutes ago, Chrissyblards1 said:

Put money into a vault that will look after your wealth. That’s almost like trusting your bank. 💀

Depends on the vault. All vaults were not created equal.

[Chrissyblards1]

3 minutes ago, sixgun said:

Depends on the vault. All vaults were not created equal.

Where do I sign up? 😬

[HerefordBullyun]

https://www.zerohedge.com/commodities/gofundme-campaign-seeks-15000-silver-short-squeeze-billboards

Legends lol