Wallstreetbets eye up SLV

[Mrbusiness]

Looking forward to the events about to unfold in SLV.

[Spark268]

call me old fashioned by why not just buy the physical?

[Stu]

3 minutes ago, Spark268 said:

call me old fashioned by why not just buy the physical?

millennials, like to buy and sell at the touch of a screen. That said, probably best to have this ability in this instance. , 

[John79]

5 minutes ago, Spark268 said:

call me old fashioned by why not just buy the physical?

I think myself and many on this Forum will be hoping for that as well.  Certainly you wouldn't have 3 d Party Risk as you do with SLV or even in a Bullion Vault.

[GoldStandardPartyUK]

 

36 minutes ago, breaktwister said:

The CME futures shorts on silver are between 100-600 times the amount available for delivery.  

Great so all we need is to withdraw 1% of the comex stockpile? Lol if only you're right

What they did to GME is 54x so far. If this happened to my 420 oz of physical silver I'd be quite pleased 😌 

[Spark268]

420oz thats such a round number of physical to have 😄

if I recall correctly, there's only around 5bln of silver above ground, meaning there's no more than 0.75oz per person alive.

[sixgun]

19 minutes ago, Spark268 said:

call me old fashioned by why not just buy the physical?

Hey - Old fashioned.

Edited January 30, 2021 by sixgun

[Arganto]

420? Is perhaps @GoldStandardPartyUK a sentimental 'ol hippy? 😉

[MancunianStacker]

Don’t buy “SLV”. It is not backed by physical, it’s purely paper. 

Buy “PSLV”, it’s backed by physical.

Buying some throufh my SIPP on Monday. 😁 

- Physical

- Tax free capital gains via SIPP (pension) or via a self-select ISA

- No real limit

- I can buy any amount of silver and sell it the same day of required, no storage, no need to find a buyer.

[sixgun]

The Silver Shorts’ Last Stand?

 

January 23, 2021

Ted Butler

Butler Research

I started calculating the financial plight of the 8 big shorts in COMEX gold and silver on a twice-weekly basis around June 2019. That’s when gold moved higher. The big shorts had added quite aggressively to short positions early in the move and when gold rose $100, the big shorts were out $2.2 billion. As gold rose, the big shorts kept getting deeper and deeper into a financial hole. From the end of the third quarter of 2019 when the 8 big shorts were underwater by $2.4 billion, the losses have progressively worsened over the five subsequent quarters to yearend 2020, when the combined loss hit $14 billion.

The drastic turn in the financial fortunes for the 8 big shorts is not the only change that has occurred since the summer of 2019. A development I believe may be just as important, is the change in the composition of the big shorts. The former king of the big shorts since 2008, JPMorgan, broke ranks and completely covered its gold and silver short positions. It has now been 10 months since JPM has held no significant COMEX gold and silver short position. It makes sense for JPMorgan to have eliminated its dominant COMEX short positions, as that allows it to profit on its massive gold and silver physical holdings (25 million ounces in gold and 1 billion ounces in silver), on which it is ahead by $25 billion. But it’s not just the profit motive alone suggesting that JPMorgan may have sworn off its manipulative short selling.

Along with a monetary penalty it received in its recent settlement with the Justice Department and the CFTC, JPMorgan agreed to a deferred criminal prosecution agreement. This would expose the world’s most manipulative bank to untold penalties should it do anything improper for the next few years. The monetary penalty was rinky-dink – the deferred criminal prosecution agreement was as serious as a heart attack. JPMorgan has good reason to stand aside and not add to short positions on future price rallies.

The 8 big shorts have been “lucky” so far, that their predicament isn’t widely recognized. I’m sure that a small number of sophisticated investors are aware of the plight of the 8 big shorts. But the simple truth is that there has been no mention of the concentrated short position in COMEX gold and silver futures by any mainstream media source. Even on the Internet, the concentrated short position is hardly mentioned. There seems to be a growing groundswell of opinion that silver is the cheapest asset around (it is) and I’m even starting to hear some ask why silver is so cheap to begin with? Let me make it easy for you – the only reason silver is so cheap is because of the concentrated short position of the 4 biggest traders, who hold more than 312 million ounces short, as of the latest COT report. When combined with the next 4 largest traders, the concentrated short position grows to nearly 404 million ounces. The connection couldn’t be more direct. Silver is the cheapest because its short position is the largest.

Over the past year and a half, the biggest damage to the 8 big shorts has come from gold, but more recently silver has begun to add to the loss mix. At current prices, silver accounts for as much as $3 billion of their total losses. Every $8 move higher in silver will cause that loss to increase by a further $3 billion. A move to $50 silver, commonly bandied about, would bring the 8 big shorts an additional $10 billion in losses from silver alone. What happens if the 8 big shorts move to cover and buy back their silver short positions in order to avoid catastrophic losses? Any such attempted short covering would cause the most drastic price move in history. This is the explanation for why the big shorts haven’t rushed to cover. I believe they finally grasp the extent of the bind they are in.

The only alternative for the big silver shorts is to try and buy time and postpone the inevitable by arranging sharp selloffs in hopes of buying back as many short positions as possible, something they have not been able to do.  Complicating the plight of the big shorts is that they have buying competition. As more and more investors and financial entities move into silver, their losses mount. If they are overrun and must buy back their shorts at any price, it will be like Tesla shares on steroids. This is the big shorts’ last stand. The only difference between the big silver shorts of today and General Custer of yesteryear, is that historical records suggest Custer didn’t realize he was trapped until the last moment. My guess is that the big silver shorts now know they are doomed and are just delaying the inevitable.

[Minimalist]

1 hour ago, Stu said:

millennials, like to buy and sell at the touch of a screen

Not all of us.

[sixgun]

Where's Wonger these days?
Silver was going to $4 wasn't it.
We saw Wonger and Agent 007 off - never to return.

[Minimalist]

Just now, sixgun said:

Where's Wonger these days?
Silver was going to $4 wasn't it.
We saw Wonger and Agent 007 off - never to return.

Didnt he masquerade himself by making another account claiming he got "scammed" buying physical Gold then cited himself (original account) to tell people on here to short all metals hahahahaha

[sixgun]

7 minutes ago, Minimalist said:

Didnt he masquerade himself by making another account claiming he got "scammed" buying physical Gold then cited himself (original account) to tell people on here to short all metals hahahahaha

Wonger say he go down hard - like a bandit

[Stu]

Wonger no like silver forum till silver be $4

Wonger no b back!

[Altitudes]

wsb seems to be turning on the silver posts, they're trying to keep people focused on gme apparently

 

Honestly, I don't buy the narrative on most of this event. Institutional money probably made a killing on all of this and now watching people play tug of war over who gets to hold the bag.

[Silversavant]

31 minutes ago, Altitudes said:

wsb seems to be turning on the silver posts, they're trying to keep people focused on gme apparently

 

Honestly, I don't buy the narrative on most of this event. Institutional money probably made a killing on all of this and now watching people play tug of war over who gets to hold the bag.

Isn't the looser the one left holding the bag after these types of things?

[Drawga]

Was watching a guy on youtube who wrote the book: The Big Silver Short: How The Wall Street Banks Have Left The Silver Market In Place For The Short-Squeeze Of A Lifetime, (Still yet to read the book, but with whats happning its in my cart on amazon)

Channel is called Arcaidia Economics.

Some of his recent vids with this whole SLV and potential squeeze where intresting...

The video: Dave Kranzler: Can WallStreetBets bust the silver shorts, That Dave Guy, he brought up some good points and may or may not have gave a functional strategy.

 

[Mike1976]

Doesn’t this happen every few years anyway without the assistance of Redit groups.
In 2012 silver prices hit a high of over £21 per ounce before dropping and by 2015 had dropped to below £10 to then start gradually climbing to where we are now. 
How long is it or how higher does the price go before it drops again. 
 

[motorbikez]

12 hours ago, breaktwister said:

The CME futures shorts on silver are between 100-600 times the amount available for delivery.  These are banks selling to control the price.  Don't ask me why, becuase all answers are only speculation.   What can be said as a fact is if they are forced to 1) close their shorts or 2) deliver the metal, the price will go parabolic, perhaps no offer as these banks do not have the metal to deliver.

You have hit the nail on the head here, the bullion banks will be wiped out if the reddit guys etc succeed. The bullion banks will be shi-ting themselves as virtually all their short contracts are naked, absolutely insane behavior which has served them very well for years. Now may be the time of reckoning for them but they & their masters will fight back.

This week is going to be very interesting because I believe the FED & other governments will step into the possible s--t storm probably not openly but they will be there. They like business as usual (rigged game f--k the little guy).

Hold onto your hats lol & don't put in any money you can't afford to lose, buy as most people on here do physical or a few silver mining shares, UK have a  look at HOC & FRES.

GLA.

Edited January 31, 2021 by motorbikez

[HighlandTiger]

The only problem I see with this scenario, is that if the reddit guys succeed in their plans of bringing down hedge funds and banks, then the already fecked economy is going to get an even bigger hit. The stock market crashes as everyone sells their long positions to cover their shorts, the economy crashes, inflation rises, unemployment rises, austerity goes back on the table, peoples pension pots decrease massively, and we're all screwed.

Whilst the reddit lemmings are thinking they are sticking it to the man, they are actually in danger of destroying their own lives.

The only hope on the horizon, is that all these bored people sitting at home isolating, pretending to be day traders, will eventually go back to work and p!ssing their wages away down the pub/bookies/casino, instead of the SM, or they lose all their cash because they weren't quick enough to sell at a profit.

Being part of a massive group sticking it to the government, is all well and good but you have to live with your actions afterwards.

By trying to see the bigger picture, I'm now, hoping that the reddit craze gets stomped on and crushed by the big guys,......The damage they could cause is just not worth it. 

[Spark268]

2 hours ago, Drawga said:

Was watching a guy on youtube who wrote the book: The Big Silver Short: How The Wall Street Banks Have Left The Silver Market In Place For The Short-Squeeze Of A Lifetime, (Still yet to read the book, but with whats happning its in my cart on amazon)

Channel is called Arcaidia Economics.

Some of his recent vids with this whole SLV and potential squeeze where intresting...

The video: Dave Kranzler: Can WallStreetBets bust the silver shorts, That Dave Guy, he brought up some good points and may or may not have gave a functional strategy.

 

 

highly recommended channel to learn about the silver market ! He does get some big hitters on there. I still have to get the book also.

There was an interview earlier with Andy Mgguire where he said its almost impossible to get 1000oz Ag bars in the UK. 

I think the SLV thing on WSB is a red herring. I really dont know where SLV buys its physical Silver from. The rest of us have to pay huge premiums. I wouldn't be surprised if the silver it holds, if any, gets rehypothycated out to cover/facilitate the silver future shorts. In other words, buying SLV only perpetuates the alleged manipulation. 

I'd only use the ETFs to get short term exposure in lieu of having the real thing. Can you imagine turning up at the ETF custodian, demanding your silver? You'll get laughed at, at best or shot at, at the worst ! 😑

 

 

 

 

Edited January 31, 2021 by Spark268

[Paul]

15 minutes ago, Spark268 said:

highly recommended channel to learn about the silver market ! He does get some big hitters on there. I still have to get the book also.

There was an interview earlier with Andy Mgguire where he said its almost impossible to get 1000oz Ag bars in the UK. 

I think the SLV thing on WSB is a red herring. I really dont know where SLV buys its physical Silver from. The rest of us have to pay huge premiums. I wouldn't be surprised if the silver it holds, if any, gets rehypothycated out to cover/facilitate the silver future shorts. In other words, buying SLV only perpetuates the alleged manipulation. 

I'd only use the ETFs to get short term exposure in lieu of having the real thing. Can you imagine turning up at the ETF custodian, demanding your silver? You'll get laughed at, at best or shot at, at the worst ! 😑

Careful listening to Andrew Maguire he has been a "collapse is only around the corner" for over x10+ years now since i listened to him first on King World News. He WILL be right one day and it will be I TOLD YOU SO.

A stopped clock is still right twice a day, which is more than Mr Maguire has been  

[CollectForFun]

I am curious to see how this develops, but I am not sure what effect massive buying of ETF will have. As far as I know, with ETFs backed by physical holding it works like this: if you buy an ETF unit, this does not cause ETF manager to immediately purchase additional unit of physical. By buying an ETF unit, you only purchase the right for existing underlying physical from the previous holder of the same ETF unit. So volume of underlying physical stays the same.

Additional units of physical are purchased only if additional ETF units are "created". This creation is done via participating banks - they deliver physical to the ETF manager and for that they receive new ETF units which they can sell on the market. So if there is real shortage of physical, no new ETF units will be created and ETF holders' share of the total physical volume will not increase.

The above is of course to some extent simplified so anything could happen. E.g. what if the physical delivered previously by banks to ETF was in fact sold short?

[HelpingHands]

12 hours ago, Spark268 said:

call me old fashioned by why not just buy the physical?