Extreme Silver Shortages Hit The Physical Silver Market

Don’t say I didn’t warn you in advance!

We’ve been covering Silver here recently on WeLoveTrump.

I told you right here that the WallStreetBets group was looking to target the silver shorts as their next possible target.

Then I told you right here how some platforms were looking to deplatform silver sellers to crash the market.

In both of those articles, I told you to watch out because we might start to see some crazy moves in the silver market.

And those might just be starting before your very eyes….

Take a look:

Physical Silver Premium To Paper Hits Record As Market Tears In Two https://t.co/BtvZgyfyA8

— zerohedge (@zerohedge) February 1, 2021

First hearing #wallstreetbets was teaming to #silversqueeze the shorts had me bullish $SLV.

Now hearing about phys silver shortages & huge premiums on coins/bars I'm reconsidering that view. I now believe $SLV will go to 0 since it's priced based on worthless 99%+ paper silver.

— It's Different this Time (@OdiousDebt) February 1, 2021

ALERT: More Reports Of Shortages Of Silver In London https://t.co/zi9nhN99FE

— Alasdair Macleod (@MacleodFinance) February 5, 2021

Look, I’ll make this very clear:  I’m NOT a financial advisor.

I’m just a regular guy.

But I like silver a lot and I think it can explode higher if the hedge funds and banks and central banks are finally forced to cover their market manipulating shorts.

But it’s not just my opinion, check this out from the Epoch Times:

Several major dealers of silver, gold, and other precious metals say they’re encountering shortages of silver, in particular, after some Reddit users in the popular forum WallStreetBets called for users to create a run on the precious metal.

Later, top users on the Reddit WallStreetBets forum called on others not to purchase silver stocks, or SLV, saying that it could benefit Citadel LLC, while calling on others to purchase and hold GameStop and similar stocks like AMC.

On Sunday, Bullion dealers wrote on their respective websites about shortages of physical coins.

APMEX wrote that “due to unprecedented demand on physical silver products, we are unable to accept any additional orders until markets open on [Jan. 31] evening.”

JM Bullion, another major bullion dealer, wrote that due to an increase in demand, there will be shipping delays of five to 10 days “from cleared payment.”

Next was SDBullion, which said on Jan. 31 that it couldn’t fulfill any additional orders until the market opened.

“In the 24 hours proceeding Friday market close, SD Bullion sold nearly 10x the number of silver ounces that we normally would sell in an entire weekend leading to Sunday market open,” SDBullion CEO Tyler Wall wrote on the company’s website on the morning of Jan. 31.

“Due to extremely high weekend volume, we cannot accept any more new orders until global markets open on Sunday night.” MoneyMetals similarly stated.

Epoch Times Photo
JM Bullion, a major bullion dealer, wrote on its website that due to an increase in demand, there will be shipping delays of five to 10 days “from cleared payment.” (Screenshot/JM Bullion)
A number of popular 1-ounce silver rounds were out of stock on the four aforementioned websites and others.

“In a normal market, we normally can find at least one supplier/source willing to sell some ounces over the weekend if we exceed our long position (the number of ounces we predict we will sell over the weekend). However, everyone we talk to is afraid of a gap up at Sunday night market open,” Wall said.

“This is about ready to get really interesting, as there was very little inventory left from suppliers/mints going into Friday close. Our direct [silver] supplier informed us after the close on Friday that the ‘US Mint will be on allocation for the remainder of Type 1’ (Current Silver Eagle Design). Our sales for the month of January exceeded any one-month last year.”

The silver run was coordinated via users on WallStreetBets, 4chan’s /biz/ board, Twitter, and other websites over the weekend.

BREAKING: 🚨 🚨

OVER THE PAST 6 HOUR REPORTS:

– JM Bullion and SD Bullion have warned shipping delays of 5 to 10 days.

– David Mitchell, managing director at Indigo Precious Metals in Singapore, warned on Monday of “massive shortages”#silversqueezehttps://t.co/pwoQmPUj8N

— Gold Telegraph ⚡ (@GoldTelegraph_) February 3, 2021

Authorized dealer says "The @usmint is currently sold out of #Gold products.”

“The United States Mint will have shortages expected to last through, at least, JUNE.”

They began rationing to their wholesale clients this week; 500 oz of #silver and 20 oz of gold per day. pic.twitter.com/NHtJwCyy6X

— Peter A. Grant (@GrantOnGold) February 3, 2021

There may just come a point in the future where you can’t buy silver even if you want to.

There won’t be any for sale!

Is that time coming?

I’m not telling you what to do, but as for me and my house….I’m loading up on silver!

I’ve done a deep dive and my personal favorite is this company called DISME that actually makes coins for the U.S. Highland Mint.

In other words, they’re the real deal.

They only sell 99.9% investment grade pure silver coins.

And the coins have designs to honor President Trump.

Cool, right?

A great investment plus you can do it in style.

There was this coin:

And this:

And this:

You like them?

Here’s more, from my friend Bo Polny.

What do you think about $600/oz silver?

Bo says it’s possible.

Watch:

CNBC confirms that silver set a new 8-month high today (and that may be just the start):

Silver prices surged Monday, hitting an eight-year high.

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The rise was possibly connected to the online WallStreetBets community on Reddit, a group of retail traders who played a major role in the rise of GameStop last week.

Three experts broke it down.

Jim Cramer, host of CNBC’s “Mad Money,” discussed the complex nature that comes with investing in precious metals, which faces its own limits as a resource.

“People need to recognize that silver, while a precious metal, is chiefly used for LED. It’s used a great deal for autos, obviously a great deal for jewelry. When you take it away, you’re talking about a market that is very small. There are only two stocks that are really investable … Pan American Silver does have 17.5 million silver ounces, they failed to deliver on the amount that they’d like to do. They’re predicting this year to do 22.5 million, that is actually very big. The other one that I find that is, let’s say, worthy of investment is Wheaton Precious Metals. The stock is up big, they have about 120,000 in ounces per year they intend to put out, and then everybody else is really too small. Obviously people are using ETFs in silver. Do I think that they’re misdirected in taking it up? I do think that if you think that GDP is going to grow, you might have something winning in silver, but it is GDP-oriented. This is the first thing that they have targeted that, frankly, has a limit because there’s not that much silver out there. But at the same time, when it is used is not ornamental. So therefore, you really do need a step-up in business, in order to make that invaluable.”

Mohamed El-Erian, Allianz chief economic advisor, connected the rise to the GameStop short squeeze, and how the conflict between retail traders and hedge funds could play out.

“The fact that you can get people to look at silver, and in the process, they look less at GameStop, and because of that, there’s less worry that the hedge funds who are short GameStop are going to sell, means you can impact lots of markets. So, don’t underestimate in the short term the influence. As to what will happen, look, there’s a major battle going on between three actors, not two. Three: the hedge funds that are short GameStop, the retail investors that are long, and the people in the middle. And the question as to where it goes next, is who’s got the weakest hand? Who’s going to fold first? Who is not going to be able to stay in that trade? Now, historically, that has been the retail investor. But the retail investors are more organized right now. … If they can stay organized, they can actually force the hedge funds to cover more. But today, you get a notion that maybe, they cannot stay organized. So we’re going to see. The one thing that is systemically worrisome is if the intermediary falls. That is a completely different issue than if the two sides of the trade fold.”