Has The Silver Ship Come In?

Youngdan

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The question could not be more simple. Are we about to see what could be one of the greatest short squeezes in history. About a year ago in Colms site when silver was about 17 dollars I started a thread extolling the virtues of going all in at that price. It was a strategic metal and in my opinion was in short supply. It made mant runs at 18 dollars but just could not break through. It was stuck in a tight trading range. Then the virus struck and it was a massive deflation shock to the system and silver dropped to about 11 dollars. A complete collapse. Investors had to sell to cover losses elsewhere like stocks and with a depression, the industrial demand would collapse as well.

But then we saw the money printing and I believe a great demand from scared investors to get the actual coins. With mints closed and then stores, the premium between spot and coin expanded to outlandish margins of about 13 to 15 dollars a coin. That has since eased to 6 dollars which is still very extreme, as normal would be a little of 2.50.

So on Monday the 20th we finally had seen prices come back and after getting through 18 and then 19 in the past month, it finally broke through the important 20 dollar figure. IF may well stall and fall back here somewhat but after a few days if it holds above 20 then that will set a very important floor to the market.

The people who are now sweating are those who are short because this is a very thin market. A small amount of money relatively speaking can drive the price up and the shorts will be losing serious money and some will be forced to cover, which means they will have to buy back the silver they sold short. This buying will further exasperate the pain for the other shorts. This is known as a short squeeze and silver would be very hard to get hold of without dramatically higher prices. Everyone would be buyers, the shorts because they are forced to before they lose even more money. and the longs who would have made a huge profit, which gives them even more buying power.

A short squeeze is not a common event and can vary in intensity but in this small market it could be astounding, silver could go to 100s an ounce.

There will surely be an attempt to smash it down with more short selling of contracts but the physical buying is happening daily.

To give a understanding of figures here. It is extimated that 1 billion ounces exist and that would be values at 20 billion dollars. Monday, Jeff Bezos made 13 BILLION on his Amazon stock and is worth about 175 billion. He alone could buy all the silver existing 9 times over.
A more likely buyer would be Elon Musk who made 5 billion Monday on his Tesla stock and is worth now 74 billion. He cornering the silver market is logical as he needs a lot of silver.

Fingers crossed here as I have serious(for me anyway not for Musk) option contracts
 

Oliver Plunkett

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I have been waiting for these moves a long time. I have a chunk of physical that I have been sat on for years waiting a return to the 40+ dollar range. I have been buying semi-regularly since silver was at 12 or so back before the big push to nearly 50. I have continued to add to the hoard. If we see 40 dollars again I will likely liquidate a large portion of physical and hold onto the rest for whatever ride lays beyond,

In have also recently gotten into the mining stocks, which are doing well right now. I am not an options trader. 100 dollar silver would not surprise me at all.
 

Youngdan

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I have different accounts but just one I trade. Unfortunately I had to sell my shares because I thought stocks I shorted would fall but instead they rose. But to compensate for this I got a ton of calls of SLV at varying strikes. I also got just 8 Contracts on AEM with an 80 strike. I have 100s of contracts for SLV, wish it was 1000s.

So today is an important day. If it holds 21 on the spot it will have taken out a dollar range in less than 24 hours
 

Youngdan

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It now has shot through 22 dollars so this could have legs
 

Oliver Plunkett

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Exciting times for silver bugs. 5 year highs. Every dollar increase makes me a pretty penny. Holding out for 40 however
 
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Youngdan

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Exciting times for silver bugs. 5 year highs. Every dollar increase makes me a pretty penny. Holding out for 40 however
I hope you have a decent stake, I believe about 18 months ago in PI you said you had. Buying the first ounce is the most difficult but then you are hooked. I have often gifted someone an eagle to get them started. At the time 15 to 20 bucks but should I give them the bug, then in the future they will be a powerful ally to me and with resources. I probably should roll some positions here before the close in 30 minutes but I will risk it til tomorrow. The strategy is stupidly simple. A higher strike, increase the number of contracts, extend out the expiration date, and pray like a motherfucker.
 

Youngdan

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I should have sold a bit yesterday sure enough and I did at about noon, which was worse than yesterday but a lot better than an hour later as silver then dropped 50c. I just sold 26 contracts as they were way in the money with a strike of 15. They had plenty of time left, jan 2021, but the potential upside did not stack up well against the downside. I got 6.5 sweet, but an options player is NEVER happy.

I like to buy an option at about 1 in the gopes of it going to 4 or more, I accept that many trades will be total losses of course. I intended to extent the time and a higher strike but these options are very expensive now. The correct course might be to sell PUT options rather than buy CALL options.

There may be a pause here but physical buying will continue and this silver price imo is heading a lot higher
 

Anderson

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That little Irish midget was banging on about Gold today, (Eddie Hobbs), claims he told people to buy gold.

I didn't listen to Eddie, I listened to Max Keiser and purchased when it was cheaper!


 

Youngdan

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That little Irish midget was banging on about Gold today, (Eddie Hobbs), claims he told people to buy gold.

I didn't listen to Eddie, I listened to Max Keiser and purchased when it was cheaper!


If it is a good idea to buy gold in dollars, it has been an even better idea in other currencies. Part of the recent uptrend is the 2 trillion euro package, maybe the assumption being that the ECB will have to buy that volume of bonds with freshly printed digits
 

valamhic

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If it is a good idea to buy gold in dollars, it has been an even better idea in other currencies. Part of the recent uptrend is the 2 trillion euro package, maybe the assumption being that the ECB will have to buy that volume of bonds with freshly printed digits
well Dan you were right about precious metals. Is it too late to buy gold and silver?
 

valamhic

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I have been waiting for these moves a long time. I have a chunk of physical that I have been sat on for years waiting a return to the 40+ dollar range. I have been buying semi-regularly since silver was at 12 or so back before the big push to nearly 50. I have continued to add to the hoard. If we see 40 dollars again I will likely liquidate a large portion of physical and hold onto the rest for whatever ride lays beyond,

In have also recently gotten into the mining stocks, which are doing well right now. I am not an options trader. 100 dollar silver would not surprise me at all.
I cannot see much metal being extracted from mines. How can they send miners into such a confined space with the virus hanging around?
 

Oliver Plunkett

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well Dan you were right about precious metals. Is it too late to buy gold and silver?
silver is still a very good buy right now. There is room to at least double your money at this juncture I feel. *not financial advice*
 

Oliver Plunkett

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I cannot see much metal being extracted from mines. How can they send miners into such a confined space with the virus hanging around?
this is one of the factors driving the price rise. Production is down but demand from industry is still high. Most corporations that utilize silver in their products refuse to divulge how much they use for fear of driving the price up. This is a known factor in keeping prices lower. But the production squeeze combined with continued demand is partly behind the breakout
 

Youngdan

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well Dan you were right about precious metals. Is it too late to buy gold and silver?
My understanding is that it is not easily done in Ireland.

Anything is possible but it is hard to see gold quintupling however silver doing so would not surprise me at all. There is supposedly less than a billion ounces of silver available. I think it is exceedingly cheap here as it clings above 22 dollars. If it holds there it will be buoyed by physical purchases. Stores are very low around here. I will call a few next Monday or Tuesday
 

valamhic

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My understanding is that it is not easily done in Ireland.

Anything is possible but it is hard to see gold quintupling however silver doing so would not surprise me at all. There is supposedly less than a billion ounces of silver available. I think it is exceedingly cheap here as it clings above 22 dollars. If it holds there it will be buoyed by physical purchases. Stores are very low around here. I will call a few next Monday or Tuesday
I use it in the workshop where its is contained in silver solder a form of brazing.
 

Youngdan

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I use it in the workshop where its is contained in silver solder a form of brazing.
If it can be purchased tax free for a commercial usage then fire ahead
 
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