The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Hopefully we'll get more numbers soon when the feasibility study is out
Although silver may well continue falling back, I think no one has noticed rare earths doubling. When Hoc bought out Biolantanidos the market poo pooed it and our share price tumbled. What is the case now?
Is there any idea yet how much of which metals Biolantanidos has, what it could produce annually and how much to extract. Ie what proportion of the business will it be, just tiny? And when could it contribute to profits.
Taking delivery of silver will have no effect? I think the guest was saying it was of little consequence in the grand scheme of things. I'm not sure anyone believes in the possibility of 'squeezing' but I and some others do believe that supply and demand will eventually do their thing. The guest dismissed arguments for rising silver prices saying people had been calling for it from the 80's. I would answer that by saying it is 2021. Green energy and it's demand did not exist in the 80's. Neither did the biggest spending since WW2. And I'll hand it back to the guest at 22.30 of the video as he explains how physical buying of silver has increased since 2019 with accompanying rise in price. It won't squeeze, it will rise.
Morning.
Seem to be catching a bid here - as are other big PM miners - no more than a month or so until we find out what's what IMO.
Golden Cross (MA50>MA200) on the weekly @ 206p helps the tech picture of course.
My chart view on Gold:
https://twitter.com/bonker_99/status/1367067319403487234?s=20
Have a look over on kitco at silver price suppression squeeze and other myths that explains why taking delivery of silver will have no effect, really interesting watch
Gold and Silver moving up nicely as expected !
Hi Sotolo, no worries. I am interested to see where silver ends up in March. Hopefully it will be much closer to 30 or higher if people demand deliveries of their silver. I am guessing it will start moving mid month especially after the FED meeting.
Thanks as ever Knight, interesting. However the rules are subject to change as the Hunts found out, and our board don't see a takeoff having hedged a third at $27, so far proved right as silver begins its fall (dating the chart in the article). Personally the Chairman and CEO have both sold a third of their holding, the CEO after this was published and the Reddit silver stuff, hardly a ringing endorsement. I wish you were right....but I think I believe our board's actions more, and the charts that suggest we head south
PAY PARTICULAR ATTENTION TO THIS
March 2021 - the Largest Silver Delivery Month in the History of COMEX?
Given the five stress points which can be observed in the physical silver market (as noted above), attention has now turned to the upcoming delivery months for silver on the COMEX noting that these months are March, May, July, September and December 2021.
As noted above in Table 1, the March 2021 COMEX open interest is currently standing at extraordinary large level as of Friday, 19 February 2021. Without significant action by those institutions who are holding short contracts (primarily bullion banks), the March 2021 COMEX contract may be the largest delivery date in the history of the silver market.
Moreover, as of Friday, 19 February 2021, the open interest for the May 2021 COMEX silver futures contract also stands at an extraordinary quantity of 96,432 contracts which is the equivalent to 14,760 tonnes[20].
For historical context, the previous delivery record for silver in the history of the COMEX was in July 2020 where over 17,294 contracts or 2647 tonnes (or 86.47 million ounces) were delivered.
During this period, it was revealed that those institutions that were required to make delivery of 1000 ounce ‘good delivery’ bars had insufficient quantities. This in turn led to a dramatic 60% increase (in $US dollar terms) in the price of silver from $US 17.95 per ounce to $US 28.73 per ounce over the course of a 5-week period as the price of silver was bid up in order to entice sufficient quantities to be sold to those institutions who were contractually obligated to deliver.
If the volume of physical silver demanded in the March 2021 COMEX contract is able to be met at the current price level, despite the visible stress points in the physical silver market, it is possible, if not likely, that a future month in which the delivery of large quantities of physical silver are demanded, say May or July 2021, may be the point at which the silver squeeze commences.
Conclusion
In the past month, online posts initially published by WSB have created, according to industry experts, an unprecedented tidal wave of demand in the physical silver market which is driven by purchases by ETFs as well as at the wholesale and retail market levels.
This tidal wave has resulted in at least 5 visible signs of stress which can be observed at various points across the physical silver market. Evidence to date suggests that this stress shows no signs of abatement and is likely to persist if not become acute.
The objective of WSB and other new advocates of silver is to facilitate a short squeeze in the market that would result in the price of silver rising exponentially, potentially in a similar fashion to the short squeeze that occurred with Game Stop in January 2021.
Systemic and widespread documented evidence of market manipulation does help to provide the conditions for a short squeeze to occur within the silver market.
As new institutional and individual investors enter the silver market, and knowledge of market manipulation becomes more widely disseminated, the opportunity to realise asymmetric financial returns via the silver market will be more understood and thus creating additional momentum and demand for physical silver via a positive feedback loop.
Looking forward, the March 2021 COMEX silver futures contract is on track to be the largest delivery month in the history of the market, outpacing the prior record set in July 2020.
Forward delivery months such as May 2021 also show a strong level of demand for physical silver through elevated levels of open interest.
Record demand for the delivery of physical silver via the COMEX in the coming weeks and months coupled with unprecedented demand observed in February 2021 and visible signs of acute stress within the physical market provides the necessary conditions for a sharp accelerated rise in the price of silver moving forward.
John Adams is the Chief Economist for As Good As Gold Australia
[1] As outlined in the book “The Big Silver Short”, the COMEX silver futures market is the key price setting mechanism of the international spot price of silver.
Full reference is Marcus, C., (2020), “The Big Silver Short – How the Wall Street Banks have left the Silver Market in place for the Short Squeeze of a Lifetime”, Self-Published, San Bernardino, California, United States of America
extract from the link I posted:
March 2021 - the Largest Silver Delivery Month in the History of COMEX?
Given the five stress points which can be observed in the physical silver market (as noted above), attention has now turned to the upcoming delivery months for silver on the COMEX noting that these months are March, May, July, September and December 2021.
As noted above in Table 1, the March 2021 COMEX open interest is currently standing at extraordinary large level as of Friday, 19 February 2021. Without significant action by those institutions who are holding short contracts (primarily bullion banks), the March 2021 COMEX contract may be the largest delivery date in the history of the silver market.
Moreover, as of Friday, 19 February 2021, the open interest for the May 2021 COMEX silver futures contract also stands at an extraordinary quantity of 96,432 contracts which is the equivalent to 14,760 tonnes[20].
For historical context, the previous delivery record for silver in the history of the COMEX was in July 2020 where over 17,294 contracts or 2647 tonnes (or 86.47 million ounces) were delivered.
During this period, it was revealed that those institutions that were required to make delivery of 1000 ounce ‘good delivery’ bars had insufficient quantities. This in turn led to a dramatic 60% increase (in $US dollar terms) in the price of silver from $US 17.95 per ounce to $US 28.73 per ounce over the course of a 5-week period as the price of silver was bid up in order to entice sufficient quantities to be sold to those institutions who were contractually obligated to deliver.
As can be shown by Diagram 3, this elevated price level has been sustained since July 2020 and was sufficient for the quantities of silver required for delivery under the COMEX September and December 2020 contracts which were of a much smaller quantity relative to the July 2020 contract.
The number of COMEX silver contracts that stood for delivery and which actually took delivery from July, September and December 2020, are outlined in Table 2.
Given the dramatic price action experienced in July 2020 when record COMEX deliveries of physical silver were required, the implications for the price of silver in March 2021 and beyond If unprecedented quantities are demanded for delivery coupled with visible signs of stress across the physical silver market (as shown in Diagram 1) are potentially quite dramatic.
The precise point at which the price of silver aggressively rises is unknown. It will be dependent on the physical quantity being demanded and what is available to be supplied at the current price level.
If the volume of physical silver demanded in the March 2021 COMEX contract is able to be met at the current price level, despite the visible stress points in the physical silver market, it is pos
FWIW, I'm still eyeing the back-end of March/April ...
recovered a bit now but saw that low trade and thought going sub £2
2.01 Gulp !