The banks(as of 2014 had sold 250x in paper silver) so lets say there are 500 billion ounces of paper silver sold by the banks and hedgefunds.
Ok so silver goes up $5.
5$ x 3B = 15billion. Ok so the 3 billion ounces of phys silver is now worth 15 billion more.
Well what about the paper? because if paper goes up 5$ and there are 500 billion ounces of paper silver. Who has the money to pay those contracts should the holders exercise their right to redeem?
I can tell you this. If paper silver hits 45-50$ our entire banking system is insolvent. They will hold over 35 trillion dollars debt with just their silver paper contracts.
wsb doesnt want to be responsible for everyone buying silver. Reddit is the Deepstate.
The deepstate wants you to keep your money in their digital bank account. So if you do to much wrong think they can just take it away.
I never told anyone to buy or not buy silver, but if that were the case then why would the deep state media be saying it was the 'next target'? Wouldn't they instead be saying "we're sorry, our reporting was wrong there's actually NOT going to be a run on silver and you shouldn't bother with it". Why would reddit [DS] be using one tactic and MSM [DS] be using another? Reddit may be DS controlled, but that doesn't mean that every poster on reddit is the DS.
Again, I'm not even saying I disagree with the economics you explained, that's straightforward enough and makes sense. And the thread wasn't even about the silver, but since you bring it up I have to ponder it critically.
because the person who posted the original thread about silver was right. So it did start on wsb. But wsb has been reigned in. Any poster on reddit who trys to say silver is super fucked right now gets censored.
Thall shall not talk about silver!
read my submissions if you are curious. They over sold paper silver. If silver rises in cost then the paper silver becomes worth more money than the banks have.
Yes they deleted the original silver post and now its only one way of thinking. It is to big and scary if 75 million americans decided they all wanted 20 ounces of physical silver each.
That’s not how paper works. And it definitely would not crash silver market let alone the economy. At least understand what theses contracts, futures, and option actually do before making us look stupid.
thats how it works. JPM sells me an ounce of paper silver for 26$. When the price of physical silver pushes and drives up the price of paper silver well guess what?
I get to sell my paper silver ounce and net the profit.
So if that perfectly smooth brain of yours can follow, then if the banks sold way more paper ounces than they have backed by metal then for every $1 their paper ounces goes up they owe out more on the paper money than their physical silver appreciated.
What specifically is this paper you talking about a future? Of which you can take delivery of physical silver, an option? If so on what because those options on futures also can be exercised for futures which can be delivered. Or are you talking about SLV which is an ETF, which is the same as SPY, Russel 2k and other indices. if your smooth brain even knows what that is. ETFs are securitized to their underlying so although you can directly trade it for physical silver it is not jUsT a PieCE of paper.
But I get it your retarded self probably think pegged exchange rates are beneficial to our economy and that the market is just a farce. Might as well be a commie if that’s the case.
Yes futures, options futures, and are product can have physical delivery. If you remember when oil went negative in the beginning of the year this is why. Traders can’t take physical delivery so the were literally paying others to take the contracts off there hands. Also if we use a non delivered tool SLV is tied to many factors one being spot
Also leverage isn’t the same as just inventing silver on paper it’s a useful tool. So this “run” on silver you talk about wouldn’t happen.
Dude right now most big funds and banks are long silver...If silver went up to 50 leverage would actual make them ALOT MORE money not less. I get that this can be confusing but at least don’t spout something that’s not actually true. Especially when you clearly don’t know what leverage is, or the fact that some products can be excercised to take physical delievery of. Way to many people don’t understand the market but think they do. I at least work as a quant trader in derivatives (including futures options) but don’t pretend to know everything, especially around FX and fixed income markets.
A good example of this is people watching GME volume to find shorts covering. What people don’t understand is that these shorts are most likely synthetic (constructed from options) so share volume won’t move when their closed.
There is serious infiltration on Reddit ever since the GME exposure. I saw 5 subs dedicated to "silver is the next big thing" type stuff this morning. All of posted by trolls.
isnt Q about returning to a gold standard? The ones being censored by reddit(aka the deepstate) are telling you to buy silver. The only people allowed to speak on reddit are the ones saying dont buy silver its a trap.
Thanks for the information and glad you've single handedly figured out the commodities trade in silver. However, the bottom line is they hold metal. big banks may have futures and options but the families have the metal and the mining corporations to dig more out of the ground.
Props for the Buster Scruggs pic :)
explain to me this please.
there are 3 billion ounces of physical silver.
The banks(as of 2014 had sold 250x in paper silver) so lets say there are 500 billion ounces of paper silver sold by the banks and hedgefunds.
Ok so silver goes up $5. 5$ x 3B = 15billion. Ok so the 3 billion ounces of phys silver is now worth 15 billion more.
Well what about the paper? because if paper goes up 5$ and there are 500 billion ounces of paper silver. Who has the money to pay those contracts should the holders exercise their right to redeem?
I can tell you this. If paper silver hits 45-50$ our entire banking system is insolvent. They will hold over 35 trillion dollars debt with just their silver paper contracts.
wsb doesnt want to be responsible for everyone buying silver. Reddit is the Deepstate.
The deepstate wants you to keep your money in their digital bank account. So if you do to much wrong think they can just take it away.
Its all about timing. Silver is too soon rn.
ya silver is to early but GME looks to have been broken by bullshit manipulation behind the scenes.
Interesting theory, I'm celebrating the part that mentions news. I have no stance on buying silver as of yet.
its not a theory.
https://www.goldbroker.com/news/paper-silver-market-250-times-size-physical-silver-market-526
This is 2014. 6 years of QE and free money from the fed. Do you think its more or less leveraged?
I never told anyone to buy or not buy silver, but if that were the case then why would the deep state media be saying it was the 'next target'? Wouldn't they instead be saying "we're sorry, our reporting was wrong there's actually NOT going to be a run on silver and you shouldn't bother with it". Why would reddit [DS] be using one tactic and MSM [DS] be using another? Reddit may be DS controlled, but that doesn't mean that every poster on reddit is the DS.
Again, I'm not even saying I disagree with the economics you explained, that's straightforward enough and makes sense. And the thread wasn't even about the silver, but since you bring it up I have to ponder it critically.
because the person who posted the original thread about silver was right. So it did start on wsb. But wsb has been reigned in. Any poster on reddit who trys to say silver is super fucked right now gets censored.
Thall shall not talk about silver!
read my submissions if you are curious. They over sold paper silver. If silver rises in cost then the paper silver becomes worth more money than the banks have.
Are there people being banned over silver?
Yes they deleted the original silver post and now its only one way of thinking. It is to big and scary if 75 million americans decided they all wanted 20 ounces of physical silver each.
all the more reason for us to buy silver!
I don't bother with reddit, but do go to wsbets.win
That’s not how paper works. And it definitely would not crash silver market let alone the economy. At least understand what theses contracts, futures, and option actually do before making us look stupid.
thats how it works. JPM sells me an ounce of paper silver for 26$. When the price of physical silver pushes and drives up the price of paper silver well guess what?
I get to sell my paper silver ounce and net the profit.
So if that perfectly smooth brain of yours can follow, then if the banks sold way more paper ounces than they have backed by metal then for every $1 their paper ounces goes up they owe out more on the paper money than their physical silver appreciated.
What specifically is this paper you talking about a future? Of which you can take delivery of physical silver, an option? If so on what because those options on futures also can be exercised for futures which can be delivered. Or are you talking about SLV which is an ETF, which is the same as SPY, Russel 2k and other indices. if your smooth brain even knows what that is. ETFs are securitized to their underlying so although you can directly trade it for physical silver it is not jUsT a PieCE of paper.
But I get it your retarded self probably think pegged exchange rates are beneficial to our economy and that the market is just a farce. Might as well be a commie if that’s the case.
https://www.bloomberg.com/news/articles/2014-06-18/new-silver-benchmark-seen-heralding-gold-fix-revamp-commodities
read that if you have bloomberg.
in 2014 the banks had leveraged their paper silver 250x that of physical silver.
So the paper silver market is in the HUNDREDS OF BILLIONS OF OUNCES.
The banks will not have enough money to pay out on their silver paper should it hit 50$ and people want to cash out.
also wanted to add I do not know any paper silver that will give you physical in return.
The price of paper is supposed to be tied to physical.
Yes futures, options futures, and are product can have physical delivery. If you remember when oil went negative in the beginning of the year this is why. Traders can’t take physical delivery so the were literally paying others to take the contracts off there hands. Also if we use a non delivered tool SLV is tied to many factors one being spot
Also leverage isn’t the same as just inventing silver on paper it’s a useful tool. So this “run” on silver you talk about wouldn’t happen.
Well from a payout it is the same. If they have over leveraged paper to 250x its still the same outcome.
Price of silver goes up and THEY CANT PAY OUT THEIR SILVER PAPER.
Dude right now most big funds and banks are long silver...If silver went up to 50 leverage would actual make them ALOT MORE money not less. I get that this can be confusing but at least don’t spout something that’s not actually true. Especially when you clearly don’t know what leverage is, or the fact that some products can be excercised to take physical delievery of. Way to many people don’t understand the market but think they do. I at least work as a quant trader in derivatives (including futures options) but don’t pretend to know everything, especially around FX and fixed income markets.
A good example of this is people watching GME volume to find shorts covering. What people don’t understand is that these shorts are most likely synthetic (constructed from options) so share volume won’t move when their closed.
So many redpills today at WSB its glorious. The awakening is happening
Wow, that last guy. "I feel naive for the amount of faith I put in a lot of mass media I consumed my entire life".
Whether WSB started the silver run or not, let's do a silver run!
The bankers are short on silver and there is proof. Time to make them pay.
So people shouldn’t be buying physical silver right now? Or just stay out of the paper stocks like SLV?
not advice but buy as much physical silver as you can afford.
Yes, physical only. You hold the value in your hand. Buying paper SLV only helps big banks.
You could grab a put on it. Got one today and I’m up 10%. Might use it to start going long volatility on SLV.
I have no stance on that as of yet.
read my post history it will lay it out whats going on.
There is serious infiltration on Reddit ever since the GME exposure. I saw 5 subs dedicated to "silver is the next big thing" type stuff this morning. All of posted by trolls.
isnt Q about returning to a gold standard? The ones being censored by reddit(aka the deepstate) are telling you to buy silver. The only people allowed to speak on reddit are the ones saying dont buy silver its a trap.
Hmmm I wonder whats the truth.
The elite are holding a stockpile of silver -- they need to recoup the 130 billion they lost last week.
"Buy Silver" is their weak attempt at getting us to fall for it.
They have paper silver. Read my post near the top about whats goin on. Gain a ridge on that smooth brain of yours.
Thanks for the information and glad you've single handedly figured out the commodities trade in silver. However, the bottom line is they hold metal. big banks may have futures and options but the families have the metal and the mining corporations to dig more out of the ground.
there are 3b ounces of physical silver
There are 500billion ounces of paper silver contracts sold by the banks.
if silver goes up 10$ those 500b paper ounces are worth 5 trillion dollars MORE.
At 45-50$ the combined worth of the paper silver market is alone greater than the assets of all top 20 banks in america.
What happens if people started redeeming their paper silver for cash?
No body got the cash to cover that.
Paper silver is a MONSTER they created it. Now I think its about to eat them alive.