If the silver is being used for industrial/commercial purposes, more likely they will DEMAND delivery. Those folks know all about the "naked short razzle dazzle." Silver already has a 2 tiered market: the silver bullion (physical) is several dollars higher than the paper ETF. I think gold is similar. What you are referring to is not a secret. I buy my physical silver from SDBullion.com Check the physical prices versus paper silver (SIL) When SIL issues new shares, the are supposed to buy silver bullion with the money. Do they do it?? If JPM is less than totally clean, why should SIL be better ? The only silver tracker I know who plays it straight is PSLV (Sprott)
Round and round the SilverPermaBulls go. Any day now. It will happen, then it will go dormant again. But not the SilverPermaBulls. All the while BTCUSD lol will do exactly like Silver and Gold they expect to do, except neither won't. Just can't understand, appreciation is what it is all about. ROI. Not what in particular appreciates.
For sure you are guy with no respect for me. That probably stems from your arrogance. Which negatively affects your trading. Best thing for you is for me to put you on ignore. Maybe you will learn. Stranger things have happened. I DON'T play your kind of games.
Explain to me how you're going to "demand" delivery when the contracts clearly state that they can be settled in dollars? Stand on the street with a bullhorn? Sue them in a NYC court? There's possibly money to be made if you acquire a significant amount of deliverable silver bars and catch a big divergence between the paper price and the physical price, but I expect it is limited. As for industrial demand. The above ground inventory is significant. https://seekingalpha.com/article/4373933-warning-misleading-silver-supply-and-demand-data Even if 90% of the stated inventory was fraudulent, there's still many years of supply. FWIW, I'm not anti silver. I think it's an ok hedge against government gone bonkers. I just don't think it's going to beat investment in productive assets long term.
I would say its more like gold left the station in early March and has been dragging silver along with it. Gold is pretty much crushing the nominal all time high right now. I keep worrying I am going to wake up and something has blown up or another war broke out. I tried to scalp the overnight silver bulls coming in late with a SLV short at the open this morning but got out with a whole penny/tick profit on the move back up. The recovery late in the day though makes me glad I am not holding this overnight. Still though, these are really high prices with a ton of profit on GC/SI sitting on the table. I can't get long here and probably need another lift up to short the overnight again.
I got short SLV near the close at $25.97. Almost made a huge mistake with forgetting about my order when SLV was at $25.90 and didn't have a stop in place. Checked back at 4 and I am filled. Not bearish at all long term on metals but bullish on profit taking given the price action. The big move on gold from 10:30am on should take some chance of the overnight crowd piling on orders away. I don't love the trade but I think I need to try to push small edges I think I have more and trade more often in general.