What will it take to see Silver sky rocket?
First off we need to see two things happen:
1. People around the world buy all the physical Silver off of their local bullion dealers until it is all sold out and those that have purchased it hoard it. Then all the new supply that is mined is then sold to those on a waiting list. There is already a strong indications that this is happening now.
2. Investors Buy Exchange Traded Funds (ETF’s) like ETPMAG that are physically backed by Silver. Therefore when anyone invests in Silver via an ETF the manager of the fund is required to buy the corresponding amount of Silver bullion thus further draining the physical supply until it gets to the stage where every Silver ETF around the world has to scrap their market making operations – which basically means they will longer issue new units…Funds are not closed off yet but if these volumes keep up it is only a matter of time.
Then it should it should just fall into line….
Currently there is bugger all physical Silver at a time when industrial demand is ramping up to roll out the Green New Deal. So if end users don’t have an offtake agreement with a miner how will they source the Silver to make such things as solar panels? The only way will be to buy COMEX Silver futures and demand delivery on expiry. The Bullion Banks (JP Morgan, CITI, Morgan Stanley, Bank of America) continue to sell limitless Silver futures contracts over Silver bullion that they do not have, so this is when the mother of all squeezes could hit. The reason being is because they have to buy back their Futures contracts which in turn pushes up the price of Silver. The COMEX Silver market is one of the most manipulated on earth and Silver is the most shorted asset class – nothing is even close.
The Bullion Bullion banks are going to try and defend their mega short position to keep prices down. The next few months are going to be the most exciting time for Silver since the Hunt Brothers cornered it in 1979!
The Battle has begun! Can the people buy and hoard enough Silver to smoke out the Bullion Bank manipulators? I certainly hope so. If we lose, Silver will probably fall back to $20 to $24 but eventually grinds higher to $50, but if they lose….WOW!!! What could the price hit? Well it could easily trade above $250 which is the inflation adjusted high set back in January of 1980.
Let’s see what happens.