Silver Squeeze Attempt Two

The pressure is building in the silver market. The internet is awash with the latest attempt to squeeze physical silver to be carried out on May 1, 2021 – 10 years to the day since the monumental sell off/manipulation that occurred back at the highs of 2011.
 
The February effort of the silver short squeeze was an idea. What is being muted for the coming weekend feels like more of a programme. In February people were diving into the SLV which is fundamentally owned and run by JP Morgan who is the enemy of the short squeeze movement. Feb. 2 2021 has since become known as the greatest felony in the history of the silver markets – and there have been quite a lot to compare this to over the years. On the day the greatest inflow of buying took place, the price dropped astronomically. It was a clear and obvious fraud that was the smoking gun of decades of manipulation.
 
Since then, the internet movement has been buying up physical silver, realising that this is the best way to drain the system, and to create a short covering rally that should lead to a fair price, and put the well known eight big banks that have been shorting silver for years into trouble. This time around, rather than an uncoordinated attack on any futures silver trading instrument, this is an attack on the COMEX. The plan is to get 100,000 people to but 100 ounces of silver, and to all do it on the same day. A tall order indeed. However all it needs is one whale to swallow up a lot more and the move is in business.
 
The cute eyed among us all will have noticed the impeccable timing of some “officials” that have come out in the last week and proffered their knowledge that there is no such shortage at all in the Silver industry, and this planned event won’t make any difference. Well I wonder why they would be discouraging people to buy physical Silver?
 
According to reports at the start of February, London was a week away from being emptied of silver. It takes weeks for stocks to be transferred between London and New York exchanges. The COMEX is reporting the biggest outflows of gold and silver in recent years. People and organisations are standing for delivery at contract expiry and not rolling over. The big users in this industry from the mobile phone manufacturers, electric vehicle companies, battery producers to name but a few, must be getting worried that supply is dwindling and prices are going to go up. You would expect they would be panic bulk buying and storing. Perhaps these are the big outflows we are seeing standing for delivery from the COMEX.
 
The latest silver squeeze effort is far more co-ordinated and organised than the last. The following of this movement is also considerably greater than it was in February. Dealers will no doubt see this coming and raise the premiums even further, but if you consider the end goal price, paying a premium now will pale in significance in a few years’ time.

Whether this will have a direct effect on the futures price will remain to be seen. However output from mines hasn’t increased at the same rate that buying has, so demand is currently far outweighing supply, not forgetting silver isn’t exactly easy to mine like other metals are. When Biden gets his way, that will create an even larger demand, however I suspect when the price does rip to the upside it will be due to the monetary demand as individuals and organisations across the globe will soon realise their paper money is worth less each day, whereas a physical asset that has been money for thousands of years and hedged against inflation will be the asset of choice to turn to. Watch for a daily close above $30 and we can start to get very excited