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Bullboard - Investor Discussion Forum Silvercorp Metals Inc. T.SVM

Alternate Symbol(s):  SVM

Silvercorp is a Canadian mining company producing silver, gold, lead, and zinc with a long history of profitability and growth potential. The Company’s strategy is to create shareholder value by 1) focusing on generating free cashflow from long life mines; 2) organic growth through extensive drilling for discovery; 3) equity investments in potential world class opportunities; 4) ongoing merger... see more

TSX:SVM - Post Discussion

Silvercorp Metals Inc. > Short's Squeezed ????
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Post by SNgu8000 on Oct 20, 2024 10:55am

Short's Squeezed ????

Silver Prices Surge: Banks Face Billion-Dollar Losses

Silver prices explode 6%, breaching $33.6/oz. Five major US banks face billions in losses from massive short positions.

 Silver Prices Surge: Banks Face Billion-Dollar Losses (photo credit: SHUTTERSTOCK)
Silver Prices Surge: Banks Face Billion-Dollar Losses
(photo credit: SHUTTERSTOCK)
 

Silver prices soared by over 6% yesterday, breaking through the crucial $33.6 per ounce mark and sending shockwaves through global markets. The surge has put five major U.S. banks at risk of massive losses, potentially in the billions, due to their heavy short positions in the precious metal.

 

According to data from the Commodities Futures Trading Commission (CFTC), the open interest in silver futures contracts has reached a staggering 141,580 contracts, each representing 5,000 ounces of silver. This translates to a total of 707,900,000 ounces – nearly equivalent to a year's worth of global silver production.

 

With silver prices surging by $1.84 per ounce, these short positions are now underwater by an estimated $1.3 billion. Sources close to the matter report that gold futures are experiencing a similar trend, with paper shorts down over $1.5 billion.

 

The scale of this short position is particularly alarming given that it is reportedly concentrated among just five U.S. banks. Industry analysts are questioning how such a small group of institutions could take on a short position representing an entire year's worth of global silver mining output.

 

See also: Gold Short Position For Banks Reaches All-Time Record

 

Critics argue that this level of short selling creates artificial downward pressure on silver prices, potentially suppressing its true value despite strong industrial demand from sectors such as electric vehicles, solar panels, military applications, aerospace, and electronics.

 

See also: Military consumption of silver could far exceed industrial demand

 

This paradox stems from the disconnect between paper contracts and physical metal. Banks can sell short excessive amounts of 'paper silver' without owning or borrowing the actual metal, allowing them to manipulate prices downward even as physical demand surges.

 

The situation has raised concerns about market integrity and the potential for a supply crunch that could harm industries reliant on silver. Some market watchers fear that a sharp rise in silver prices could force these banks to buy back large quantities of silver to cover their shorts, potentially leading to billions in losses.

 

As this story develops, calls are growing for increased regulatory scrutiny of these practices to ensure fair price discovery and market stability in the precious metals sector.

 

The Silver Academy, an industry watchdog group, summed up the sentiment of many observers: "This behavior undermines market integrity and could have far-reaching consequences for both the financial sector and industries that depend on stable silver prices."

 

This is a developing story. More updates to follow as new information becomes available.

 

Source: The Silver Academy

 
Comment by SNgu8000 on Oct 20, 2024 7:47pm
https://kingworldnews.com/james-turk-says-50-silver-is-days-or-weeks-away-not-months/
Comment by SNgu8000 on Oct 23, 2024 9:15am
https://www.kitco.com/opinion/2024-10-22/silver-squeeze-has-officially-begun
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Investment Opportunity

Stable & Profitable Silver Producer Positioned to Grow


Management focus on generating free cash flow from long life mines
– US$498M profits distributed from our mines net of spending >$300 million on capital + sustaining capital expenditures
– Cash position: US$212 million (no debt, no equity or debt financing since 2010)

Organic growth through extensive drilling and consolidation
– Drilled 629,000 m exploration holes at the mines during 2020-2021 alone
– Production guidance increases of 11% in silver, 3% in lead, 12% -21% in zinc and 100% in gold compared to prior year
– Constructing a new 3,000 t/d mill and 20 million m3 tailings storage facility
– Acquired the Kuanping project near Ying for US$13.5 million

Equity investments in potential world class opportunities
– $39 million invested in New Pacific since 2017, resulting in world class silver discovery and value appreciation to $138 million

Ongoing merger and acquisition effort to create value
– Evidenced by attempted 2020 Guyana Goldfields acquisition

Long-term commitment to responsible mining and ESG
– 17+ years strong community & government relationships


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Suite 1750-1066 W. Hastings Street
Vancouver, BC
Canada V6E 3X1

Tel. 604-669-9397
Toll Free1-888-224-1881
investor@silvercorp.ca