Has the #silversqueeze already fizzled out?
Hard to know at the moment. Prices are being hammered down this morning as the CME hiked COMEX margin requirements by 18%.
But according to this interview last night with Robert Mish, an independent precious metals dealer with nearly 60 years of experience in the industry, inventories have been overwhelmed by the wave of retail buyers making purchases over the past few days.
As a result, the price of physical silver is currently MUCH higher than paper silver.
If this buying pressure continues, he sees the price of paper silver being pushed up into the $35-50/oz range in the near term. But that’s only if the army of retail buyers keeps at it.
How will we know if the #silversqueeze army is successful in creating a true silver shortage?
Robert shares his war stories from previous panics in the ’60, ’70s and 1980 to give us a sense of what one will look like if it indeed happens:
Marketwatch: Commentary Censorship
February 2, 2021
Marketwatch: Commentary Censorship
Yesterday (February 1, 2021), MarketWatch published an article on why the short squeeze on silver being discussed by some on WallStreetBets/Reddit would be short-lived. Having read a number of articles on the issue it was not difficult to identify some misleading/faulty statements in the article. I sent a comment through to point out these inconsistencies in the article only to receive a message back that my comment “has been rejected as it contains content that is in breach of our community guidelines.”
Here is the comment:
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Some misleading and missing ‘facts’ in this story.
First, the gold-to-silver price ratio is not ‘historically’ 60-1. That is only a relatively recent ratio. Historically, the ratio is about 15:1. (https://www.mining.com/web/alert-gold-silver-ratio-spikes-highest-level-27-years/)
Second, the argument that the WallStreetBets/Reddit crowd is justifying its position based on the industrial use of silver in electronics/technology is only partially accurate. Several others justifications have been forwarded: the ratio of silver mined to gold mined is even lower than the price ratio, about 8 ounces of silver to every 1 ounce of gold (https://www.jmbullion.com/investing-guide/james/silver-supply/); and, most importantly, there are 100s of paper ounces of silver to every actual physical ounce in existence, so taking physical deliver, as many are suggesting, will expose the fraud that is the precious metals market (https://www.goldbroker.com/news/paper-silver-market-250-times-size-physical-silver-market-526#:~:text=This%20would%20mean%20that%2C%20for,circulating%20in%20several%20financial%20products.)
And finally, many simply want to expose the fraud and manipulation by the Big Banks that has been going on for ages. (https://www.reuters.com/article/jp-morgan-spoofing-penalty/jpmorgan-to-pay-920-million-for-manipulating-precious-metals-treasury-market-idINKBN26K325)
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The community guidelines are fairly extensive, but I can find no where in my comment where I was in breach of them, except maybe “excessive links to external websites”; but is 4 excessive?
Blatant censorship? It seems so to me.