RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RESULTS AWESOMEflash338 wrote: If the banks can't knock down silver to get those that are long to freak out and sell, they are stuck in their obligations to sell metal they don't have. Historically, less than 1 percent of contracts settle in metal. Most are cash settled. The Comex is not meant to be a delivery market but it's increasingly the only place to get metal. The banks are being called out for pushing the price too low and people are taking delivery. Last year was a record year for deliveries on the Comex and it's still going strong this year. That was before WSB. The banks may have to buy contracts into a rising market to cover their shorts. A short squeeze on the banks. Typically, open interest rises with price as the banks sell into the paper demand so if open interest drops as the price rises, that's likely to be the banks buying to cover. That means a large seller disappears and in fact turns into a seller. Classic short squeeze. Who knows what will happen but there is some serious pressure on the banks. There has been several high level interviews in the last 2 1/2 months. Some unprecedented freak outs by the bankers saying some crazy things that are completely illegal like using the SLV trust metal to short on the Comex. Like calling demand of over 100m ounces on the SLV alone in just a few days no big deal. That's well over ten percent of global production in a year. No biggie. The Perth Mint is getting called out too. They are about out of metal, refusing and delaying delivery, and giving their own freak out interviews. So ya, it's about to get interesting.
Interesting observation. Thanks.
When you say "that means a large seller disappears and in fact turns into a seller," do you perhaps mean...turns into a buyer?
People taking physical possession of their silver coupled with ever-increasing demand for industrial silver...can only mean one thing. Shortage.