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Official ODT Silver Thread
- Thread starter roscoe1911
- Start date
Down $4 today, crazy how it can drop so fast but never seems to go up that fast
100%
So I've just recently learned that COMEX had to borrow about 160 million physical ounces of silver from JP Morgan in order to meet physical delivery requests on their contracts. Considering JP Morgan only has a bit over a billion physical ounces, then if the record requests for physical delivery from COMEX continues then eventually JP Morgan will either run out of silver or, far more likely, will stop lending out physical silver to COMEX and therefore let all silver contracts with them default.
What I'm assuming is happening now is that they're making a desperate attempt to scare people from buying precious metals. My guess is that their plan is to tank precious metal prices, which hopefully lowers demand for physical silver ensuring they don't run out and can keep the manipulation scheme going. Then once the prices bottom out they buy back most of the physical silver they had to get rid of in order to drop the prices in the first place. This would keep the prices low just like they want and they would then get to keep most of their physical silver as well, for them a win/win. Of course this would be a HUGE risk considering there's the possibility that investors only see this massive price drop and an opportunity to buy back into the market, as novice investors have been TRAINED to buy the dip. This would mean that prices don't stay low for long, the demand for physical delivery of silver contracts continues, and therefore JP Morgan gambled and lost 160 million physical ounces of silver in a bet to lower demand for physical.
What I'm assuming is happening now is that they're making a desperate attempt to scare people from buying precious metals. My guess is that their plan is to tank precious metal prices, which hopefully lowers demand for physical silver ensuring they don't run out and can keep the manipulation scheme going. Then once the prices bottom out they buy back most of the physical silver they had to get rid of in order to drop the prices in the first place. This would keep the prices low just like they want and they would then get to keep most of their physical silver as well, for them a win/win. Of course this would be a HUGE risk considering there's the possibility that investors only see this massive price drop and an opportunity to buy back into the market, as novice investors have been TRAINED to buy the dip. This would mean that prices don't stay low for long, the demand for physical delivery of silver contracts continues, and therefore JP Morgan gambled and lost 160 million physical ounces of silver in a bet to lower demand for physical.
I think it may retrace to $20 before heading on a long, long, long, uphill.
I think this sort of back and forth is more the action of profit taking by those fearful of a price drop and locking in their gains. The genie is out of the bottle, in my opinion, on paper silver. Comex had to borrow because people are accepting their contracts in physical metal rather than cash or rolling the contract, a trend that is going to increase as time goes by and become quite problematic as the amount of silver sold in a week sometimes exceeds the amount mined in a year. People who are short silver right now are sweating, many will lose, some will lose everything.
I would like to see
This is why it’s hard for this stuff to naturalize and the prices to reflect what they should when JP steps in again and pulls the strings. A billion is a lot to play with and they won’t run out anytime soon.
If they had to get rid of 160,000,000 ounces and they only have a billion then that there is a decent chunk of the physical they had on had to play with. Know that they aren't likely willing to give up their entire position, either. At some amount of silver they have left, be it 500 million ounces, 750 million ounces, etc they will refuse to suppress the physical market anymore and thereby let it explode.
The market is saturated, but the powers to be will make it rise by holding on to there surpluses. It's a good time for holding on to silver for a while .
