The world has watched the retail demand for silver spike over the past 2 weeks. But now the tightness has spread into the 1,000 ounce wholesale bar market.
ZeroHedge reported last week how the US Mint has been unable to keep up with the surge in silver demand.
“The US Mint is limiting distribution of its gold, silver and platinum coins to specific dealers because of heavy demand, and a limited number of suppliers of metals, it said in a statement.”
Kitco also commented on the “rationing” of certain coins by the Mint.
The U.S. Mint has been rationing the sales of its silver coins due to “continued exceptional market demand” and limited supply, Bloomberg quoted the U.S. Mint as saying on Tuesday.
Yet now the dislocations in the market have spread to the 1,000 ounce wholesale bar level. With multiple dealers reporting increased premiums and delays.
When 4 large silver dealers were asked point blank Wednesday morning if they could fill an order for a customer who wanted to buy $10 million worth of silver and take delivery by the end of the week, not one was able to say they could do it.
Instead, they’re being told by their wholesalers that it would take at least a month, if not longer.
Given the increasing attention being placed on the big silver short position that’s now out in the open for any fund in the world to study, it’s becoming more and more difficult to see how the tightness gets resolved at the current price level.
Especially with so many new eyes on the story, perhaps it’s also worth re-considering if the #silversqueeze is really over yet.**>
I was about to reply negatively to this until I saw the value of the contract... $10 million USD. OK. That might make a difference.
My original reply was that I have a friend in Bangkok who is a gems and jewelry dealer. I asked him if there was any issue with silver shot right now. He told me that there was no shortage at all and could get as much as he wanted immediately.
But he's talking about realistic industrial supplies. I imagine a huge amount for investment could create an issue. But I think you would always have that. If you ask for an obscenely large amount of any commodity, you may have to wait for delivery. In the mean time, if you want to order 500kg of silver shot for jewelry manufacture in Asia there is currently no problem filling the order.
The other question I have is how much of that short position is needed for ordinary commerce. Any industrial supplier who holds silver in inventory is going to have a short position open to hedge against a price drop. How much of that short position is investment banks vs. inventory in legitimate businesses? Has anyone calculated those figures?
Repeat after me. If you take delivery they have to de-liv-er. To NOT deliver is k own as a DEFAULT. The Not required part comes from trading contracts where every contract play does not have to move around millions of ounces of silver.
If require silver delivery and it is not delivered then a default occurs...
ZeroHedge reported last week how the US Mint has been unable to keep up with the surge in silver demand.
“The US Mint is limiting distribution of its gold, silver and platinum coins to specific dealers because of heavy demand, and a limited number of suppliers of metals, it said in a statement.”
Kitco also commented on the “rationing” of certain coins by the Mint.
The U.S. Mint has been rationing the sales of its silver coins due to “continued exceptional market demand” and limited supply, Bloomberg quoted the U.S. Mint as saying on Tuesday.
Yet now the dislocations in the market have spread to the 1,000 ounce wholesale bar level. With multiple dealers reporting increased premiums and delays.
When 4 large silver dealers were asked point blank Wednesday morning if they could fill an order for a customer who wanted to buy $10 million worth of silver and take delivery by the end of the week, not one was able to say they could do it.
Instead, they’re being told by their wholesalers that it would take at least a month, if not longer.
Given the increasing attention being placed on the big silver short position that’s now out in the open for any fund in the world to study, it’s becoming more and more difficult to see how the tightness gets resolved at the current price level.
Especially with so many new eyes on the story, perhaps it’s also worth re-considering if the #silversqueeze is really over yet.**>
I was about to reply negatively to this until I saw the value of the contract... $10 million USD. OK. That might make a difference.
My original reply was that I have a friend in Bangkok who is a gems and jewelry dealer. I asked him if there was any issue with silver shot right now. He told me that there was no shortage at all and could get as much as he wanted immediately.
But he's talking about realistic industrial supplies. I imagine a huge amount for investment could create an issue. But I think you would always have that. If you ask for an obscenely large amount of any commodity, you may have to wait for delivery. In the mean time, if you want to order 500kg of silver shot for jewelry manufacture in Asia there is currently no problem filling the order.
The other question I have is how much of that short position is needed for ordinary commerce. Any industrial supplier who holds silver in inventory is going to have a short position open to hedge against a price drop. How much of that short position is investment banks vs. inventory in legitimate businesses? Has anyone calculated those figures?
Repeat after me: "COMEX is not required to fill physical contracts."
Do not become the next GME bag-holding sucker.
If you are taking delivery they are.
Repeat after me: "COMEX is not required to fill physical contracts."
Repeat after me. If you take delivery they have to de-liv-er. To NOT deliver is k own as a DEFAULT. The Not required part comes from trading contracts where every contract play does not have to move around millions of ounces of silver.
If require silver delivery and it is not delivered then a default occurs...
Unless they inform that there's no silver to deliver to you. Aw. "Here's your (fiat) money back!"
Google: "it is possible that the futures exchange could just elect to settle contracts in cash in a worst-case scenario."
-- Isn't COMEX just a lovely racket?
Yup. They default and people start wondering why they are defaulting.
Because wondering people is a terrible concern when you're trying to keep concerned wonderers out of your racket after you've fleeced them.
There's a reason SLV is traded like a common-stock with a typical 30% margin-requirement. It's all about raping the stops.
You can say that about anything. What's the point of a great awakening if nothing comes out of it?
People knowing is power.
How much of this shortage is real and how much is "manufactured?"
Gotta Love the silver hating shill :)
Just makes me buy more Physical Silver ?
Physical is the way.
Don't downvote the guy telling you how it is rigged, as opposed to how you wish it was.
(I smelled a rat in SLV, and got out before sustaining any loss.)
Shills gonna shill :)