There are over 500 hundred derivatives trading for every single ounce of silver pulled out of the ground.

There are over 500 hundred derivatives trading for every single ounce of silver pulled out of the ground.

*

Nowadays we have bloated debt in every segment of society. The US dollar, the world reserve currency, is vulnerable. For the first time in Fed’s history, the chairman Jay Powell is publicly stating that the Fed is stimulating inflation. We have all of this with a silver market that is incredibly small. It is a market that is so tiny that Apple could buy every ounce of silver that went toward investment for the whole year with 0.5 % of its cash. Every silver coin, every bar, and every ounce that’s represented in one of the ETFs, Apple could buy with a half of one percent of its cash. So what happens when all of a sudden you’ll have hundreds of hedge funds, thousands of institutions, billions of investors, and trillions of dollars’ worth of currency all want a piece of the silver market? 

The rise in the Silver price that is coming because of things like this will take our breath away. It will skyrocket to the Moon. 

But if Apple could buy the yearly Silver investment supply with so little of its cash pile why not doing it? The situation is a lot more complicated.

*

The Hunt Brothers

Almost everybody knows about the infamous Hunt Brothers. They are portrayed in the media as the evil speculators who tried to corner the silver market back in the day. Like a lot of other cases, the reality is a little bit different and very odd indeed.

The Hunt Brothers were looking to basically call the US Treasury out on how much money they wanted to print. But their big problem was that after they got their hands on about 100 million ounces of physical silver, then they got into the derivative market on the COMEX and got another 120 million ounces in silver futures contracts and they started taking delivery. That’s when they started playing a game they could get destroyed in and they eventually got. The CFTC came in there and basically shut them down. The Department of Justice ordered: ‘No more buy orders. Only sell orders.’ And boom, the price went down from $50 to $20 in a matter of months. The Hunt Brothers got destroyed because they were playing with leverage on the paper market. They should’ve known better. They should’ve known that the government can step in. If they just stuck with physical silver they would have been just fine.

*

The Hunt Brothers were not as evil as portrayed in the mainstream media.

The Hunt Brothers were not as evil as portrayed in the mainstream media.

*

Warren Buffet

Mr. Warren Buffet went in and started buying Silver during the late ‘90s  and the government struck back and said, ‘Stop or we are going to take you out as we did with the Hunt Brothers. You either get out of this market right away or you are going to be audited the rest of your life in everything else you do.’ At that point, Buffet had about 130 million ounces of Silver. But then he got himself in trouble with General Re, a reinsurance company he bought. They were involved in a great deal of fraud and he was right in the middle of it. So, the bankers and the officials went to Buffet and said, ‘Hey, we’ll let you out of this General Re problem if you give us all that physical Silver you have.’ And that is how he got out of General Re and the banks got the physical Silver and started the Silver ETF – SLV.

*

In the ‘90s Mr. Warren Buffet was forced out of the Silver Market.

In the ‘90s Mr. Warren Buffet was forced out of the Silver Market.

*

The bottom line of the story

In times of uncertainty and spiraling inflation, commodities do pretty well. So, hold your physical Silver as if your financial well-being depends on it because this is not further from the truth: CHECK OUT THE PHYSICAL SILVER WE OFFER!

*


LEGAL DISCLAIMER:

While the author has made every effort to provide accurate data and information in the preparation of this article, neither europabullion.com nor the author assumes any responsibility for errors or for changes that occur after the publication. The information referenced is believed to be reliable, accurate, and appropriate, but is not guaranteed in any way. The strategies and forecasts herein are the author’s sole opinion and could prove to be inaccurate. No company, individual, or entity compensated the author or europabullion.com for mention in this article.

The article contains specific names of companies, strategies, different currencies, shares, government bonds, types, and sizes of precious metals, none of which can be deemed recommendations to the readers. Reading this article does not constitute a fiduciary relationship. Data, company-specific or otherwise, will not be updated on an ongoing basis. After the publication of the resources, the author and europabullion.com will not be responsible for future developments.

A registered financial advisor is always the best source of guidance in making financial decisions. The author is not a registered financial advisor and does not address the individual financial condition of the reader.

Price Charts

XAG / EUR
Silver / Euro
21.94
--0.05% --0.01
XAU / EUR
Gold / Euro
1502.31
--0.01% --0.14
XPT / EUR
Platinum / Euro
886.64
0.00% 0.00
XPD / EUR
Palladium / Euro
2109.77
0.00% 0.00
View Full Chart