Howdy folks,
https://finance.yahoo.com/news/silver-rises-biggest-one-day-094028348.htmlNot sure how much profit taking was taking place vs. people buying the dip. Weak hands gone is OK.
A couple of interesting facts. A 1964 silver quarter is worth over $14 is bullion alone. Also, an ounce of silver is now over $75 and a barrel of oil is around $60.
Unlike the last two bull market in the metals which were driven by speculation, this one is driven by supply/demand fundamentals.
Works for me,
and so it goes,
peace,
rono
Comments
I doubt that few have numismatic value above the silver content.
The comment on supply/demand fundamentals is very interesting.
Doc here's an article about the supply and demand of silver. New metal has lagged demand by over 1 million ounces a year for 5 years running. 70% of new metals comes as a by-product of lead, zinc and copper mining. China processes about 60% of the raw silver coming out of the mines. Adding a new mine is years in the making.
Demand is nuts and the industrial demand is what separates silver from gold. Gold is a store of value monetary item. Silver is both that AND an irreplaceable industrial metal. It's the most reflective and best conductor, anti-microbial, and used in photography. What is crazy is that it's crucial in every solar panel, electric vehicle, date centers, etc. None of them gives a rat's ass about the price as without it, they plants shut down.
So add in the demand like gold by central banks and sovereign wealth funds in the debasement trade, and for good measure throw in the 'going to the mattress' group like I did when that Cheeto SOB was elected.
The divergence is between the paper price of silver and the physical price. Right now it's around $10 between Comex and Shanghai. That is not going to continue. This is a schadenfreude moment as the London and New York silver pricing groups are being handed their asses.
I don't know where bitcoin is going. I've owned COIN since the onset but never bought a coin. Hell, I have a tough time remembering my name let alone a wallet ID.
More the question is where is the dollar going and where is all fiat currency going? The Fed started the printing presses and they're going to continue to drop rates.
Physical bullion and mining stocks - Oh my.
https://online.kitco.com/fundamentals/silver-investment?gad_source=1&gad_campaignid=22167131403&gbraid=0AAAAADsHY8_SR9g2tB5ByD017dhNc_yck&gclid=CjwKCAiAjc7KBhBvEiwAE2BDOVZmOgmsc12V2-rd3L8sBrZx36kbbphkiZaibjO3GcfyJZK3vLyIWxoCNmsQAvD_BwE
and so it goes,
peace,
rono
•New Chinese policies restricting silver exports are set to kick in Thursday as Beijing tightens its grip on the metal.
•State-run Securities Times on Tuesday cited an unnamed industry insider who said the new export controls place it on the same regulatory footing as rare earths.
•Silver prices have surged as investors hedge against a weakening U.S. dollar
Disclaimer: I did not check if this was already posted or discussed
Right now there is a war going on between the paper price of silver and the physical 'street' price. Since Bretton Woods, the major money banks have been keeping the price artificially low for whatever reasons. Now that the world has run into a supply/demand wall, that artificial pricing is coming to a halt. The divergence [thanks Gary Smith] between paper and physical price has ballooned. Right now the COMEX price is $72.85 while the price for an ASE is $83.25 (not a bad premium), but word on the street is that in Asian prices are anywhere from $130 to $150 an ounce for actual physical silver.
Now, with our friendly banks, they have kept the price down by buying enormous quantities of short silver contracts. Due to the s/d issues, the price is trying to explode and they are 'well and truly fucked'. They are experiencing margin calls that make you want to blow chunks but worse, there is an extremely limited supply of actual physical silver to settle. [when you have multiple claims on the same ingot it gets sticky if someone wants to take delivery]. The COMEX has raised margin requirements twice in past week to help and supposedly there has been a line at the Fed's REPO window for billions of stop gap. The next step will be COMEX declaring 'force majeure' so they can pay all contracts in cash rather than real silver. This cash will come from the Fed. When the dust settles, the POS will be north of $100.
Watch your paper silver holdings. Hold your physical and look for miners.
and so it goes,
peace,
rono