Quote:
Originally Posted by karl262
This is going to be an interesting week 
Sent from my SM-G973W using Tapatalk |
Hold on to your butts, the run on physical silver really has the chance to create some panic. Most of the larger institutions are net short silver because they do the commodity hedging for all the industrials that use silver. There is a massive paper market that’s net short (remember the large settlement by US banks admitting to manipulating the precious metals markets).
This paper market is going to create pressure on the physical market and will likely result in repricing to incentivize people to sell their physical silver to support the contracts. If you are a industry who uses silver as an input for your business and need physical demand, this is going to start really squeezing the banks net short position.