https://x.com/scottsdalemint/status/1885827169709920627
A significant amount of refined silver comes from Mexico. With the new tariffs, it now costs 25% more to import it. Looks like there is going to be a short squeeze on the the paper silver shorts, who typically operate on very slim margins. These traders often engage in a strategy where they buy silver contracts for the front month and sell contracts for a later date (future), hoping to profit from the price differential. However, with the increased sourcing cost, their positions are now deeply unprofitable. The carry trade they've been relying on has come to an end, forcing these short sellers to buy the physical silver they've promised to deliver, which could lead to further losses. This situation mirrors what happened in 2020 when gold and silver prices spiked due to refinery shutdowns.
If the tariffs move to Europe/Switzerland - the same would be for gold.
I am too dumb for this shit. I just buy shiny.
Smart! I've heard the saying "If you don't hold it, you don't own it!"
I am buying all I can at cost from wesellsilverandgold.com
Been buying and stacking silver for a long time.
So if I'm holding 'bought and paid for' silver ingots, what does this mean for the price of my glitter?
It means you are very wise, and I expect a spike upwards very soon.
HODL.
MOON SOON.
Aww sooki...slides some PM out from under bed just to look at it...
Question:
Isn't currency transfer exempt from taxation including tariffs? That's one reason that plans to tax remittances to Mexico have failed in the past iirc.
In theory this would mean that the tariffs could be avoided for pm generally, or that simply minting it into coin would be enough. I think there's a good argument that ingots and bars are currency.
Anyway, worth looking into if you are planning on making big bets based on this info. I'm not specialized in pm transfers, but that's my gut instinct based on some experience adjacent to the pm trade.
Good question - I asked Grok whether you need to declare gold as a monetary instrument when you travel, and the answer was that gold coins are considered legal tender and need to be declared, but gold bullion isn't considered legal tender. I don't recommend any big bets in general - there is no end to the amount of paper contracts that can be generated where you can get fleeced so it's at your risk if you enter the paper arena.
Cool, I have many, many troy ounces of physical silver. I can’t wait…
did you see them flying in a bunch of gold and silver?
https://archive.md/20250131225138/https://www.bloomberg.com/news/articles/2025-01-31/traders-load-us-bound-planes-with-gold-and-silver-in-tariff-bet
I am an idiot, and do your own research. But in my opinion physical gold has a possibility of going very high. Banks lease gold from central banks. London exchange also allows for paper trading of gold they claim to have. It appears they didn't have the gold they said they did, physical demand is going to go even higher as it's the thing that banks use to balance their sheets. Banks, london exchange, etc will suffer huge losses and anyone holding onto physical gold.
However also if you're in the USA silver's cost might have just gone up because of tariffs. The USA does not produce most of the silver it has and we import most of our silver from Mexico and Canada.
AND at the same time, because of tariffs..it might cause the demand for silver and gold to climb even higher. If silver or gold from Canada is tariffed than JPMorgan/etc is going to do everything they can to get London's supply of stuff onshore before those expected EU tariffs hit. This would going to deplete the EU's supply even more, create more of a backlog, more chaos, more chance of running out.
Things are spicy.
I definitely saw it - it was a large discussion with my family and it's spicy indeed. Typically the gold doesn't leave the vaults as Central Banks stopped leasing their gold since the Washington Agreement in 1999. They also added Basel III where it's a Tier 1 asset, and they don't want to see it leave. It didn't stop the paper scheme - but It just became further leveraged or hypothecated by London and JPM.
In this example they are long a calendar spread and would profit with the front month contract increasing in value more than the deferred contracts they have sold.
Interesting, could this perhaps be a sub-facet to the tariff implementation?
Me hopes so!
Exemptions to tariffs are easy.