WallStreetBets is Targeting Silver Next as the Short Squeeze - Silver Prices up 5.5%, page-28

@peejayhercules

im not sure you quite grasp what is occuring

the short squeeze is a real world silver supply issue

you are talking about the paper spot price - which has only a very loose and fractional relationship with the true market price for silver

to push the silver spot price back down - the US investment banks shorted over 450,000 silver contracts - each contract represents 5000 ounces of silver

eg. +$US6billion in implied silver ounce at current paper price

That is not silver that actually exists - it is purely hypothecated contracts promising to sell silver - most of which will not be required to be delivered because very few investors have that kind of coin

Howverr - futures settlement for these cuccrent contracts occurs at the end of the month. So typically if the paper price is artificially depressed below what institutional investors, refiners etc judge its real world value to be - they will start buying those paper contracts and take some delivery

You need to understand that the Investment Banks that run the paper ponzi are thesmelves also buyers. JP Morgan is both the highest buyer and seller by volume every silver futures contract settlement I;ve looked at in the past 10 years (%50+ of the market usually)

So - Longstoryshort - paper market is not the real world market. The longer the real world market is in supply deficit though - the more the paper market gradually has to move in that direction because refiners and others will end up buying paper contracts at what are discount prices

But because JPM in particular is always playing both sides of the trade - and runs the silver paper market - you dont know precisely when that will occur

You just know that it will - because the marginal wholesale silver ounce buyer will gradually keep eating up JPM's silver inventory through futures settlements

That said JPM supposedly has 1Bn ounces of physical silver I read. So its more likely theyll flip net long as they did last March and drive the surge not hold it back - once they regard the physical supply deficit as too great to co-opt