The silver "short squeeze", that is, the planet is moving out of physical silver. Yesterday, silver had its evidence day, a price increase of 4.4% besides frequently does not happen. It turns out that the origin of specified large increases is not only the request of investors for metal, but mainly its lack. This morning in Asian markets, the price of silver was raised to $5350 for 1 oz.
Metal dealers retreat silver from their offers due to the fact that once, they have nothing in the back, and two, what they have is better to stop, due to the fact that the price of growth very much, if you confirm the information that physical silver is actually missing in the world. The center of the problem is London, where merchants who have purchased 'paper silver', or contracts for the collection of silver in the future, apply for the receipt of this silver in physical form and it turns out that this silver simply does not exist. The problem is very serious, the shortcomings are felt worldwide, even with the biggest dealers like Kitco.
The situation is in crisis, failure to comply with the contract, above all, a failure of assurance in the system. If paper contracts are not actually covered in physical silver (or gold), this should make panic among investors. This will mean that more people will request the execution of paper silver (or gold) contracts, and this will origin panic throughout the precious metals market. This panic should pour into another markets as it turns out that the silver (or gold) simply does not exist.
It is hard for me to compose how large the 'paper silver' marketplace is, different 'specialists' from precious metals supply different information. The numbers sniff from 50% to 90% of the silver marketplace is 'paper silver'. Read, If 90% of the silver marketplace is not covered in physical metal, today's silver price is only 10% of the real price. Read silver should cost $500 an ounce today. akin relationships are in the price of gold. How much physical silver or gold is there exactly, I don't know, there's most likely only a fewer people in the planet who have that knowledge. 1 thing is certain, it is simply a ticking crisis if there is no silver in fact, and almost the full marketplace is 'paper contracts', which are renewed all 6 months and no 1 is picking up these metals.
This morning again, individual in a fewer minutes sold immense amounts of gold and silver and dropped the price of gold by $70 and silver by $2. Looks like an artificial metallic price manipulation action. However, prices are constantly rising and they most likely won't stop, at least until it is confirmed that the silver is actually in London, or possibly individual stole it and issued fake contracts, without covering it in physical metal.
Arthur Kalbarczyk
