Socio-Economics History Blog

Socio-Economics History Blog

Silver Futures Soar 8%, Rise Above $29 As Reddit Hordes Pile In

by mosesman

  • Silver Futures Soar 8%, Rise Above $29 As Reddit Hordes Pile In
    by Tyler Durden, https://www.zerohedge.com/
    Update (1800ET): It was the one print everyone was waiting for, and here it is: silver futures opened up 7%, surging from $27/oz to a high of $29.095 following a weekend of speculation that the next big squeeze on WSB’s radar is silver. And whether that’s true or not, may no longer matter in a world where – as described below – there is virtually no physical silver to be purchased.
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    Spot Silver is back to its highest since the August/Sept cycle highs…
    … And silver’s dramatic outperformance has pushed the gold/silver ratio to its lowest since 2014…
    So as silver approaches $30, keep an eye on major price slams, emerging either out of central banks who desperately need to keep precious metals lower, or the BIS itself, whose Benoit Gilson will have a busy day tomorrow.
    …
    Update (1100ET): For some background on just how unprecedented this weekend’s action in silver markets is, Tyler Wall, the CEO of SD Bullion writes the following (emphasis ours):
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    In the 24 hours proceeding Friday market close, SD Bullion sold nearly 10x the number of silver ounces that we normally would sell in an entire weekend leading to Sunday market open.
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    In a normal market, we normally can find at least one supplier/source willing to sell some ounces over the weekend if we exceed our long position (the number of ounces we predict we will sell over the weekend). However, everyone we talk to is afraid of a gap up at Sunday night market open. This is about ready to get really interesting as there was very little inventory left from suppliers/mints going into Friday close.
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    Our direct AP supplier informed us after close on Friday that the “US Mint will be on allocation for the remainder of Type 1” (Current Silver Eagle Design). Our sales for the month of January exceeded any one month last year during the heart of the pandemic. It was an all-time record month in our company history.
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    And, perhaps most importantly, as QTR tweets so succinctly,“this is a red pill moment for many, and it’s beautiful.”
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    read more.

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