Silver in London's underground vaults is running low.
Derivative powers that be are on full defense.
Going on various fiat bubble vision shows, trying to belittle growing interest and physical bullion buying.
Not gonna work. Surely along the way, they will win day-to-day derivative battles. Ultimately, they will lose the physical bullion war.
Ronan Manly of BullionStar reported this past week about shrinking London silver bullion float inventories here on ZeroHedge.
According to Ronan's best estimates of this convoluted almost fully opaque market. Just over 100 to 125 million troy ounces of silver remain unallocated in London.
As we have seen thus far in 2021, one hundred to one hundred twenty-five million troy ounces of silver can be bought out by investors in a mere matter of a few heavy buying and silver betting days.
Earlier this week, I sat and listened through a bunch of #SilverSquealer interviews scoffing at the influence of new silver bullion and $PSLV share buyers. This week we will focus on the head of commodities research at Goldman Sachs, Jeff Currie.
In the video above, we cover some of Jeff Currie's February 2nd, 2021 interviews where he tries to.
Only but a handful of days before Jeff Currie went on TV and lied to everyone, the CME Group COMEX silver futures contract size limits doubled from 1,500 to now 3,000 contracts. So Comex traders can soon legally hold sway over a 15 million leveraged price discovery derivative position. Of course, read too that these position limit doublings are merely effective in April 2021, not to be held under compliance until 2022.
But since JP Morgan has such an outsized position underlying over half the fraction silver bullion COMEX pile, it will be through their COMEX warehouse-size that they will likely continue trading exempt from these new 3,000 contract position limits. Working for alleged clients like perhaps the People's Bank of China for instance.
While the media continually wants to spin this ongoing #SilverSqueeze, playing it off as mere retail bullion buying populism. The underlying truth is that we will likely continue to see larger financial players, commercial users, and perhaps even sovereign nations enter into the fray.
Some to merely make momentum trade profits, but some perhaps even, to better secure strategic silver bullion stockpiles for their future.
Last few years China's silver import demand has plateaued around 3,500 metric tonnes per yr, a little over 110 million ounces per yr.
That is nowhere enough silver for the coming production needs and ambitions of the Chinese 2049 agenda.
I am showing this to you because the silver squeeze will likely become way larger than the mere retail level.
Like Russia, China has been gearing up and stockpiling for this 21st Century cold war.
Of course, everyone paying attention already knows about the massive tonnage of gold both those nations stockpiled in the 2010s.
What we do not know is just how much silver bullion do the Chinese authorities have stockpiled?
How are they going to bid silver away from growing western silver store of value buyers?
We let Jeff Currie finish this week's update, as we go back to a presentation he made at his Alma Mater, the University of Chicago in late May of 2017.
Listen to the contradictions he makes about (#1) how comparatively tiny the global commodity price discovery markets are.
And point #2, in relation to outsized commodity demand from China.
And what that nation can do to commodity prices if and when it enters a market in size.
Do you remember paying $5 a gallon for gasoline in late 2007 and early 2008?
I do, and it sucked. Next time crude ramps get ready for double digits per gallon gasoline, perhaps later this decade.
by jhanders
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