Run on Silver May Collapse Markets Within Weeks

[Meritocrat]

[FONT=&quot]While Congress begins hearings today to investigate the short squeeze of GameStop three weeks ago, a much larger and more significant squeeze is taking shape, putting at risk not just a few large hedge funds, but also some of the largest financial institutions in the world, if not the entire financial system itself.[/FONT]

 

[oyarde]

Silver eagles are currently being sold wholesale to dealers at 7 1/2 over spot down from 8 a week ago , junk silver 90 percent halves are being bought by these wholesalers at 29.50 per ounce or 21 times face . They then are marked up approx ten percent and sold to dealers who will mark it up ten percent again to sell retail putting halves at 35.70 per ounce retail.

 

[Madison320]

[FONT="]While Congress begins hearings today to investigate the short squeeze of GameStop three weeks ago, a much larger and more significant squeeze is taking shape, putting at risk not just a few large hedge funds, but also some of the largest financial institutions in the world, if not the entire financial system itself.[/FONT]

How would that collapse the markets?

What I see happening over the last 20-30 years is the federal reserve and us govt borrowing and printing every time the markets start to weaken. And they're borrowing/printing bigger amounts over shorter periods of time. Eventually the dollar is going to cave and we're going to get really high price inflation, maybe even hyper inflation. I know that's going to happen but I don't know how long it's going to take and what happens next. I think the rise in silver is just another indicator that price inflation is coming. I think what's really going to mess things up is oil. When gas prices start hitting $5-10 a gallon I think the end is near.

 

[Meritocrat]

Markets could collapse because the silver shorts likely can not afford to cover. These are not hedge funds but large investment houses like Bear Sterns and Lehman Brothers.

 

[oyarde]

How would that collapse the markets?

What I see happening over the last 20-30 years is the federal reserve and us govt borrowing and printing every time the markets start to weaken. And they're borrowing/printing bigger amounts over shorter periods of time. Eventually the dollar is going to cave and we're going to get really high price inflation, maybe even hyper inflation. I know that's going to happen but I don't know how long it's going to take and what happens next. I think the rise in silver is just another indicator that price inflation is coming. I think what's really going to mess things up is oil. When gas prices start hitting $5-10 a gallon I think the end is near.

i expect retail gas to move to 3 and 4 quickly , oil up another dollar today , one yr forecast 70.00 , nat gas over 3 , heating oil approaching 2 , copper near 4 . Retail gas here already pushing 2.70 as wholesale gasoline approaching 1.90 .

 

[Invisible Man]

Markets could collapse because the silver shorts likely can not afford to cover.

Do you have data to back this up?

The fact that you're talking about those large investment houses, combined with the fact that the amount of silver out there to buy is on a scale so many times larger than the market cap of GME makes it a lot harder to expect them not to be able to cover.

 

[oyarde]

Do you have data to back this up?

The fact that you're talking about those large investment houses, combined with the fact that the amount of silver out there to buy is on a scale so many times larger than the market cap of GME makes it a lot harder to expect them not to be able to cover.

Not much out there to buy right now , none near the spot paper share price but you may be right that the market cap is smaller than people may expect .

 

[oyarde]

Silver down about a dollar from the last week pre blizzard price . Gold is cheap if you can find any. Wholesalers are buying Proof Gold Eagles at 345 over spot for sale to dealers ( at 8 percent over that or about 2290 at todays close) and common silver Eagle Proofs at 61 1/2 .

 

[Meritocrat]

I looked at some data given by Ed Steer, who is cited in the article. Most of the analysis here comes directly from him. The one thing I add is the idea that if a 1.9 trillion bill is passed, and the House is scheduled to vote on February 26, it is going to be EXCEEDINGLY DIFFICULT for the shorts to defend there position. Not only would they be adding 1.9 trillion in Federal Reserve notes, but the many green initiatives that would receive funding would require tons of silver that is already in short supply. As I note in the article, the Reddit group Wall Street Silver is just a small part of what is driving this squeeze. This is not a near bankrupt company like Gamestop, it is a hard asset held by individuals and institutions as a hedge against money printing.

 

[Invisible Man]

Not much out there to buy right now , none near the spot paper share price but you may be right that the market cap is smaller than people may expect .

And in spite of that, the price has only doubled over the past year. Compare that to the way GME at its peak was up almost a hundredfold over a year prior.

It just seems unlikely to me that a company like Bear Stearns can't hand this.

 

[oyarde]

And in spite of that, the price has only doubled over the past year. Compare that to the way GME at its peak was up almost a hundredfold over a year prior.

It just seems unlikely to me that a company like Bear Stearns can't hand this.

I dont see how they wouldnt be in a position to handle it . They should be making money off about everything else to cover losses there. Dow @ 31 1/2 K .

 

[oyarde]

28 seems to be where silver keeps reaching selloff of paper . If it can move to 28 and hold I think 29 and 30 will come. There still wont be much physical for sale though I imagine .

 

[oyarde]

Pretty soon online silver sales could be like 9MM and .223 ammo . People will offer you opportunities to pre order for six months later delivery .

 

[oyarde]

Silver has fluctuated ten percent from last nights Asian market to todays NY market from low to high . I'd like to see that stop certainly but I'm not expecting it .

 

[GlennwaldSnowdenAssanged]

Pretty soon online silver sales could be like 9MM and .223 ammo . People will offer you opportunities to pre order for six months later delivery .

Yes and take your money and never deliver.

 

[oyarde]

Yes and take your money and never deliver.

LOL , I'm sure ammo has reached that already

 

[oyarde]

[MENTION=6186]Danke[/MENTION] . I still have a little room here at my vast , secure storage facility if you want to keep your liquor , gold , silver and ammo here. No charge for you.

 

[oyarde]

Biden declares end of America First . If that doesnt push silver over 28 Sun night I dont know what will.

 

[oyarde]

Silver up to 27 3/4 so far this evening .

 

[Meritocrat]

[FONT=&quot]People are over thinking the correction in gold and silver. The first trillion plus spending bill was signed into law on March 27 with silver a shade under $15. Another 900 billion in spending was approved on December 27 with silver at $25. [/FONT][FONT=&quot]Much of the appropriations have yet to be spent. [/FONT][FONT=&quot] The House is set to vote on the next on 1.9 trillion bill on Friday. Gold and Silver have priced in austerity that has zero change under a socialist regime. [/FONT]