Silver Is On A Tear Today

I sold the bulk of mine at 25. to buy a new tractor. Talk about hindsight. I see provident is paying descent prices for buy back Maybe some more should go.

 

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What I’m saying is when interest rates are cut it tells investors that the dollar is weaker. That’s what causes silver to rise by the Fed cutting interest rates.

 

At least you spent the money on something that you needed. Tractors are a costly item. But they have many uses. Isn’t hindsight great? I wish we had foresight like we do when applying hindsight. Lol

 

But if it's the END of a cutting cycle....and other countries and/or the ECB are going to cut for a while longer....that wouldn't be a tailwind, but a headwind.

I get what you are saying, CN....I just wouldn't bank on it being a material or long-term source of support/demand for PM or silver prices.

 

Definitely not a long term reaction but that short term one can make you rich or break you.

 

As long as you hold on to the original principle, your playing with other peoples money and thats the way I like it

 

How much plowing and hauling could you have done with the silver if you'd kept it?

 

Lack of supply, obviously. The LBMA was drained of it's "silver ocean" (liquid free float) back in Jan/Feb. We saw the evidence for this in September when lease rates blew out. JPM told India they would have to wait until November to receive the LBMA silver they purchased in October (technical default has already happened). COMEX has been in panic mode all November trying to help the LBMA. Someone at the CME panicked unless you believe a triple redundant cooling system shut down just the precious metals trading last Friday while the rest of the data center carried on.

 

Way back in 1980 when silver went bananas I sold 300 ounces of inventory for $48 an ounce. It helped to cover the GIA Graduate Gemology degree and the costs of living in Santa Monica for seven months.

 

I believe, at least a small contributing factor in the sudden and explosive rise in spot silver has to do with India accepting silver as collateral for loans. Beginning in April, 2026, the Reserve Bank of India, RBI, will begin accepting silver jewelry and silver coins as collateral for loans.

The extreme poverty in a large segment of Indian citizens will free up hoarded silver artifacts as well. Due to the poverty levels it's anticipated that a large portion of those collateralized loans will go unpaid. The RBI will then retain the silver and put the loans into default.

 

If I wouldn't have fallen in love with coins. I would have been a stacker. If I was stacking for the past 20 years not collecting? My assets would be much larger than they are, and that is on a single father's meager budget. I do agree that the writing is on the wall. The value of the dollar keeps declining. Debt is out of control. And the idiots that say you can print your way out of the problem are only making it worse.

 

I’m a collector as well. But I do have my stacks in various different forms.

 

I have small stacks. Just not enough of it.

 

I feel the need to have lots more myself.

 

I recently acquired these at quite the deal (still very costly) but am now looking into auction houses and/or consignment sales for them. Very heavy, unweighted Mexican Silver candelabras with very few conditional issues. Roughly 41 ozt, purportedly from the Eagle era of Mexican sterling production. A very, very fine pair that I wish I could keep to myself but finances are boring and restrictive and all that stuff.

 

Good chance it breaks through 60 tonight.

 

Interesting and wild at the same time.

 

It will be an December to remember.
December is one of the primary delivery months for both gold and silver futures contracts on the COMEX. May be a record month for physical deliveries.
Then comes January 1st when China stops their silver exports. Next couple months should be real interesting.

 

Those are really interesting. Absolutely beautiful!

 

You present some strong arguments, PMB. On the surface, it looks like a compelling reason for a moonshot.

However....the move in silver this year looks pretty orderly to me.

If all these problems were really material to the supply/demand condition, I think the price would have had some huge 1-day moves up like 10-15% or more, PMB.

Trading is NOT my specialty in finance but the rise in silver has been accompanied by other PM rises. It looks orderly, in-line with other PMs, and I think the settlement problems are just overstated.

The problem I have with these short position cataclysmic arguments is that they've been around for years with no move. There appear to be lots of ways to settle trades without driving the price up.

That's what I mean...this was MISREPORTED.

First, other items were affected: trading in gold, oil, and interest rate swaps.

Second, the data center isn't owned by CME anymore, it's controlled by a PE firm.

I don't even understand how a 24-hour outage amounts to a conspiracy to control the price but it's happened before with other trading instruments. You can always claim force majure if there is a delivery/settlement issue.

I just don't think these things provide any springboard for a rapid, long or short-induced move higher.