Idiot here: Explain to me exactly why all these banks and such are short silver.
>>61573137Because trillions of dollars of consumer goods/infrastructure require silver, if silver gets too expensive then everything becomes expensive and we get an economic meltdown
>>61573137they're not. it's all a crazy conspiracykeep buying index funds, ignore commodities
The biggest dealers have to position themselves to avoid risk but didn't account for a large surge in demand for industrial silver. That's when contracts that normally give you security from short term price volatility become toxic.
>>61573137Because being short silver just means you are contractually obligated to buy it back later, and over a long enough time frame the banks know that the majority of retail will capitulate their silver regardless if the price crashes or moons.
>>61573137Free money. Industrials also appreciated buying silver for cheaper. The fed has a vested interest in keeping precious metals price down as it keeps the appearance of inflation is under control so any bank that screws up with this will get bailed out by them.Fast forward to today, the price has been kept artificially low for so long, there aren't enough profitable mines to handle the sudden surge in demand in the past few years. Silver is a byproduct, not usually mined directly and can take decades to start up production, so you can't just increase supply. Prices simply need to increase so that mining is profitable enough to increase the supply to meet the demand, and it will take a few years of higher prices to do that.
>>61573137Precious metals are a gauge that tell you how much people trust government and their currency. When people are losing trust in the system they sell their currency and buy precious metals. So if you can keep the price of precious metals low it’s likely people will perceive nothing is wrong, that inflation is low, and there is trust in the system. These perceptions help keep interest rates low which makes debt cheaper. The whole financial system runs on cheap debt and trust. Why is it accepted that central bankers lie? The argument is if they didn’t lie then people might panic if they knew something was wrong. Same thing with precious metals, if the price was high people might panic.
>>61573137Ok imagine you sell silver. But the dude is an idiot, thinks all that heavy metall is to fucking heavy, plus he is a pussy so he does not want to store it in his house. So you just sell him a certificate that promises him silver (he can, in theory, demand physical delivery). But you actually dont have silver lying around, never had any.Now if the guy sells his silver certificate one day, everything is fine, you sell that certificate to the next retarded goy. But if he demands physical, you actually have to buy real silver. So NOW there is a demand for REAL silver. And if all anons buy silver (physical) the price goes tits up, and you get fucked harder than a bitch in dubai.
>>61575006It’s sad that the JPM “analysts” get paid so much when our autistics give us so much poetry
