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    • Silver Short Squeeze: A Historic Market War in the Making
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    Silver Short Squeeze: A Historic Market War in the Making

    Harry Posted on

    A storm is brewing in the murky world of precious metals trading. Long considered gold’s neglected cousin, the silver market stands on the precipice of what could become one of the most remarkable short-term contractions in financial history. This isn’t just another story of market manipulation; It is a combination of structural weakness, industrial necessity, and growing awareness that could reshape the world of precious metals forever.

    The Banking Cartel’s Silver Plan: Decades of Price Pressure

    The story of silver prices being suppressed by major financial institutions may read like a financial thriller, but it is documented fact rather than fiction. For decades, a small group of powerful banks have maintained large short positions in silver, effectively acting as a cartel to control and suppress prices. This is not a conspiracy theory; evidenced by numerous regulatory investigations, lawsuits, and eventual settlements.

    This history of manipulation adds another explosive element to the upcoming silver squeeze. As banks potentially race to exit their short positions and preserve their physical assets, their efforts to escape the trap they have created could accelerate the momentum of the squeeze.

    As silver prices rise, these banks will face billions of dollars in losses due to their open positions. This could mark the end of the banking cartel’s long-running plan to suppress silver prices. The real price of silver, which has been hidden by manipulations for a long time, may soon be revealed.

    See also: Silver Prices Are Rising: Banks Facing Billion Dollar Losses

    Physically Compressing Paper

    For decades, the silver market harbored a dangerous secret: the world of paper trading built a castle on foundations of sand. The disparity between paper and physical silver has reached staggering levels:

    • Paper claims exceed physical silver by 400-450 to 1
    • COMEX registered inventories reach historic lows
    • Less than 0.25 percent of futures contracts typically take delivery
    • Major banks hold short positions exceeding annual global mineral supply

    As banks and traders shuffle these paper contracts back and forth in volumes that dwarf the physical market, the real metal that supports this entire system is quietly disappearing into industrial applications, investment vaults, and retail sales.

    See also: Paper and Physical: 408 Oz Paper Silver to 1 Oz Physical Silver

    Supply Congestion

    The supply side of the equation looks equally challenging. There are several factors that limit silver availability:

    • Global mineral production has fallen since peak in 2016
    • Only 25% of silver comes from primary silver mines
    • New deposit discoveries have fallen by 50% in the last decade
    • The average development period for new mines is 10-12 years

    Meanwhile, increasing global uncertainty has reignited interest in precious metals as a safe haven. While geopolitical tensions push nations and individuals to seek financial assets, central banks continue to experiment with unprecedented monetary policy. And with silver being a depleting assetThe supply-demand imbalance will worsen.

    See also: ‘Silver Squeeze Has Officially Begun’ Jesse Colombo Silver Price Analysis

    Demand Squeeze

    Silver is one of the most important elements on the planet, and there is no other element that comes close to its versatility of use. Even gold, often considered the most valuable metal, pales in comparison to the various applications of silver. The unique properties of silver make it indispensable in many sectors, from technology to medicine, from energy to defense.

    Here are just a few of silver’s many uses:

    • Green Technology: Silver is a critical component in solar panels, electric vehicles and other green energy technologies.
    • Electronic: Silver is used in a wide variety of electronic devices, including smartphones, computers and televisions.
    • Medicine: Silver has strong antimicrobial properties and is used in wound dressings, catheters and other medical devices.
    • Optical: Silver is used to make mirrors, lenses and other optical components.
    • Defense: Silver is used in a variety of military applications, including radar systems, night vision equipment, and ammunition.
    • Storehouse of Wealth: Silver has been used as a store of wealth for centuries.

    As the world transitions to a more sustainable future, the demand for silver will increase. With its unique properties, silver is poised to play a vital role in the 21st century.

    The global shift towards sustainable energy and technology is driving unprecedented demand for silver. As nations race to secure this critical resource, an old adage “get all the gold” It is replaced by a new mantra: “take all the silver.”

    See also: Military consumption of silver may far exceed industrial demand

    See also: Silver Powers the Green Energy Revolution

    See also: Experts Warn that Russia’s Silver Strategy Signals Global Economic Change

    Clamping Trigger Mechanism

    What could eventually trigger a silver short squeeze? The beauty – or perhaps the horror, depending on your position – of the current situation is that it does not require a grand conspiracy or great coordinated action. Several potential catalysts can initiate compression:

    • Stocking of Industrial Users: As industrial demand for silver increases, especially in sectors such as solar energy and electronics, companies may begin stockpiling physical silver to secure supply, reducing the available supply on the market.
    • Bank Short Covering: A large bank with a significant short position in silver would be forced to close their position, resulting in a rapid buying frenzy.
    • Critical Inventory Levels: A drop in physical silver stocks on exchanges or refineries to critically low levels could exacerbate supply concerns and drive prices higher.
    • Coordinated Delivery: By coordinating a mass delivery of silver contracts, a group of large investors can strain the market’s ability to meet physical demand.
    • Central Bank Purchase: Central banks, especially in emerging economies, may increase their silver holdings as a diversification strategy or to stabilize their currencies.
    • Geopolitical Tensions: Geopolitical events such as wars, trade disputes, or natural disasters can disrupt supply chains and increase demand for safe haven assets such as silver.
    • Gold Price Increase: A significant increase in the price of gold can often lead to increased demand for silver as investors look for alternative precious metals.

    Looking forward

    Silver market is approaching historical landmark. The physical demands of the green revolution are unquestionable. Mineral supply decline cannot be reversed quickly. And the promises of the paper market cannot be fulfilled indefinitely. Something has to give.

    After all, it’s not just about profit potential – although that certainly exists. It’s about resolving decades of market distortion and reimagining how we price and trade one of humanity’s values. most important metals. When the silver shortfall finally arrives, it won’t just be a market event; It will be a historic reset that will reshape the precious metal world for generations to come.

    Decreasing physical supply, increasing industrial demand, and increasing awareness of vulnerabilities in market structure indicate that when squeezes occur, the move can be both dramatic and permanent. For those who understand these dynamics, the strategy is clear: Position yourself appropriately, keep the faith, and Prepare for what could be one of the most important market events of our time.

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    This article is for informational purposes only. The opinions and analyzes contained herein are those of the author and do not constitute financial advice. Jerusalem Post (JPost.com) does not endorse or recommend any investment based on this information. Investors should consider their financial situation, investment objectives, and risk tolerance before making any decisions. It is recommended that you consult a qualified financial advisor. JPost.com is not responsible for any investment losses resulting from the use of this information. The information provided is for educational purposes only and should not be considered trading or investment advice.




    Harry
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