The biggest short squeeze in the world?, page-4577

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eztrang

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11/10/22

14:41

Post #: 64139256
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Originally posted by happybear45: ↑

First, the situation with physical silver is that the world has struggled to supply enough to meet demand for over 25 years. And in these last 25 years we also have had the largest needs for silver ever. So up until ~2016 mining supplies were still slowly growing so maybe someone in a high place had hope that mining would eventually catch up and that the ~2 billion ounces of past pirate treasure that had to be supplied to make up the shortfall could be ended. But mining stalled and is now dropping as demand keeps increasing.

So what will happen when the stockpiles of silver around the world are used up and there is still high demand? Well obviously price will match that reality. Silver is way more scarce than average people realize and for something that is mined at a 8:1 ratio to gold, we could in fact be closer to a 1:1 ratio when it comes to bullion silver and bullion gold. This isn't widespread knowledge yet and once it is I expect more price increases. Most people don't follow or educate themselves on fundamentals and this is where people who do the research can get a leg up over others.

People who only concern themselves with the silver price and fail to look at the fundamentals are bad investors. People that understand those fundamentals and then fail to understand the mechanisms behind the silver price when it is publicly available are bad researchers. Some people may go "yeah those fundamentals look tight but the fact they can control price makes me not want to invest", fair enough. But their ability to control the silver market is going to end soon because they cannot just wave a magic wand and print silver into existence to keep the con going. They can with fiat currencies but not with real things.

You need to have enough stored silver to supply industry and others in a dwindling supply scenario to keep pretending it is plentiful. We have data that shows they have done this for 25+ years. How much longer can they do that? Well if we look at the data from the worlds largest holdings of silver they can no longer do that as they are all emptying at a pace that is mind boggling. It is a classic bank run in action here, the banks used to pretend they had lots of cash, lots of liquidity and there was no problem. Until the very day it was all over. They will control silver price up until that very first ounce of silver that is requested can not be supplied.

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You didn't answer the question. What exactly do you expect to happen in the "big silver event?"
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The biggest short squeeze in the world?, page-4577

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