Start Buying Physical Silver! WallStreetBets and Us Will Take It To $1,000/oz

[parallax]

Seriously though.
biden announced he's gonna replace government fleet vehicles with. E. V. Someone's gonna get those contracts.
Also watch the stock ticket. TIXT tommorrow it's a new IPO. Might be some action there
I bought and sold. HOL made some money today it gained 57%.

 

[OldTengu]

https://www.reddit.com/r/wallstreetbets/comments/lbm1ks

As I understand it, many hedge funds are based in/backed by silver.

 

[Member 34319]

Silver (actual metal in your hands) is highly disproportionate to actual stock (virtual shares of the corporate value)

Trading virtual silver is not the same as the real metal. The stock is based on the corporations that sell physical silver. Not the actual silver itself. IE shares of the industry. Not the actual metal. They are not connected directly.

Buying the actual metal doesn't actual have that great of a influence on the share price. It will make the industries that sell physical silver a bunch of money, which in turn could make the value of the shares go up, but that's a completely different thing than a short squeeze.

With typical supply and demand, yes, if a ton of people buy up real metal silver, the prices can go up on physical silver, but that has nothing to do with silver shares.

The silver industry has always been on an edge. It is very expensive to mine, and the price is not all that high. So investors who trade the stock, not physical metal, like to gamble on it short term as the share prices fluctuate often. Shorting it for a month or two can be an easy money maker short term.

The guys on Reddit are looking for shorted stocks to squeeze, unfortunately after getting caught completely off guard with GameStop, a lot of shorts disappeared almost instantly. Including those in silver stock.

The rush on buying actual silver right now is likely caused by misinformation and those confused and or thinking it will equate to making a bunch of money in a short time like those that got in on GameStop at the beginning.

Sorry to burst the bubble.

 

[Mikej]

The rush on buying actual silver right now is likely caused by misinformation and those confused and or thinking it will equate to making a bunch of money in a short time like those that got in on GameStop at the beginning.

Sorry to burst the bubble.

This is what I didn't get. I'm probably not as savvy on stuff like this as you are, but buying silver at this time didn't seem smart. A year ago, yes, now, not so much. I have debated selling the 30 or so ounces we bought at $14.00+/- though.

 

[Member 34319]

This is what I didn't get. I'm probably not as savvy on stuff like this as you are, but buying silver at this time didn't seem smart. A year ago, yes, now, not so much. I have debated selling the 30 or so ounces we bought at $14.00+/- though.

Owning silver doesn't hurt, but it is no way the same as owning shares. Selling silver when it is high is completely different than selling shares when they are high, or short squeezed.

Brief explanation of shorting and squeezing shorts. At least to the best of my amateur day trading knowledge.

Big brokers borrow shares, usually from an investor or someone that owns a huge portion of a companies shares. Sells them, usually at a good price and usually in good quantities. Remember they never owned them, but rented them, at a certain rate. They must be returned to the owner, or the owner can in a sense repo them. Most of this stuff is beyond my knowledge as most amateur day traders don't have the capital to even perform such a trade. After selling them, they buy up some other shares at a lower price, return the shares they borrowed. The person lending the shares made some money by renting their shares, the short sellers made money by selling imaginary shares, used that money to buy more shares, returned what they owed, kept whatever profit they made from all that work. It's a crazy make belief nonsense process that is properly corrupt and only serves to make big business more money and completely Fs up those at the bottom.

Selling shorts, is where brokers see that a certain stock is failing. GameStop was a physical store that sells video games, when the market is heading towards streaming video games on a virtual market. It was failing. Short sellers, borrowed up huge portions of the stock, sold it, and sat on it. The completely Fd up part is short sellers can borrow stock from a broker who is already borrowing it from another and so on and so forth. A share can be infinitely shorted, there are no rules or laws on the matter. Then everyone waits for it to completely fail so they could buy back the shares at very low prices, return the stock to its owners or owners owners and make big bucks in the process. Each lever makes money, and the ones at the bottom lose almost everything.

Thing is they needed to buy back the stock to return it to the lender. You can only do this if the stock is available. So imagine, in the case of GameStop, 1-3 layers of borrowers needing to buy back stock to return to a borrower or lender!!!

Reddit users united, and bought up the remaining stock. Which was not much, most of the GameStop stock was owned by big investors or the CEO or companies board members. What was available to purchased was not much. When this happened the short sellers panic, they have to start buying too, creating supply and demand. Their bet gets completely F'd, instead of buying back the stock on a failed company for next to nothing and making money, they now had to buy the stock back at 200% what they sold it for, losing a ton of money. At each layer of the short, brokers lost money. When a squeeze happens, that exponential loss that normally occurs towards the bottom, goes backwards, so those at the top of the scheme are the ones that lose the most this time.

Buying and selling physical silver will never work the same as there is no make believe silver to sell. It's all physical and all real. There can only be supply and demand that raises and lower prices. It's also much more silver in the world than gold, so as long as it can still be made it will never have the same value as gold.

 

[Mephistopheles]

Probably not a good time to buy physical silver. The online dealers are asking extreme premiums to guard against a possible jump in price. If you can get it, it will be in the mid to high 30,s right now. Also the Silver market is considerably larger then the Gamestop stocks and the reddit crew haven't the resources to make the same impact. I have periodically bought, sold and traded silver for guns. Right now I am taking any sterling and coin silver (not silver coins) and melting down to small ingots ( https://www.amazon.com/LTKJ-Melting-Silver-Graphite-Crucible/dp/B07RCFK6TP/ref=sr_1_10?crid=2RQ6LKAP6SGOE&dchild=1&keywords=silver+smelting+kit&qid=1612376590&sprefix=silver+smelting,aps,258&sr=8-10 ) this setup has worked for me. Propane doesn't get hot enough, but, butane will. Works for me.

 

[Flopsweat]

Seriously though.
biden announced he's gonna replace government fleet vehicles with. E. V. Someone's gonna get those contracts.
Also watch the stock ticket. TIXT tommorrow it's a new IPO. Might be some action there
I bought and sold. HOL made some money today it gained 57%.

Can't wait to see how he screws that up.
He's already lost 20 million doses of vaccine. I mean, I know he didn't personally lose them. I'm just using the same language the news has been using for the last 4 years. If it goes wrong it's the President's fault.

Oh, and did you know that Pelosi's husband bought somewhere between one half and one million dollars in call options on Tesla stock last month? I'm sure it's just coincidence.

 

[Mikej]

Owning silver doesn't hurt, but it is no way the same as owning shares. Selling silver when it is high is completely different than selling shares when they are high, or short squeezed.

Brief explanation of shorting and squeezing shorts. At least to the best of my amateur day trading knowledge.

Big brokers borrow shares, usually from an investor or someone that owns a huge portion of a companies shares. Sells them, usually at a good price and usually in good quantities. Remember they never owned them, but rented them, at a certain rate. They must be returned to the owner, or the owner can in a sense repo them. Most of this stuff is beyond my knowledge as most amateur day traders don't have the capital to even perform such a trade. After selling them, they buy up some other shares at a lower price, return the shares they borrowed. The person lending the shares made some money by renting their shares, the short sellers made money by selling imaginary shares, used that money to buy more shares, returned what they owed, kept whatever profit they made from all that work. It's a crazy make belief nonsense process that is properly corrupt and only serves to make big business more money and completely Fs up those at the bottom.

Selling shorts, is where brokers see that a certain stock is failing. GameStop was a physical store that sells video games, when the market is heading towards streaming video games on a virtual market. It was failing. Short sellers, borrowed up huge portions of the stock, sold it, and sat on it. The completely Fd up part is short sellers can borrow stock from a broker who is already borrowing it from another and so on and so forth. A share can be infinitely shorted, there are no rules or laws on the matter. Then everyone waits for it to completely fail so they could buy back the shares at very low prices, return the stock to its owners or owners owners and make big bucks in the process. Each lever makes money, and the ones at the bottom lose almost everything.

Thing is they needed to buy back the stock to return it to the lender. You can only do this if the stock is available. So imagine, in the case of GameStop, 1-3 layers of borrowers needing to buy back stock to return to a borrower or lender!!!

Reddit users united, and bought up the remaining stock. Which was not much, most of the GameStop stock was owned by big investors or the CEO or companies board members. What was available to purchased was not much. When this happened the short sellers panic, they have to start buying too, creating supply and demand. Their bet gets completely F'd, instead of buying back the stock on a failed company for next to nothing and making money, they now had to buy the stock back at 200% what they sold it for, losing a ton of money. At each layer of the short, brokers lost money. When a squeeze happens, that exponential loss that normally occurs towards the bottom, goes backwards, so those at the top of the scheme are the ones that lose the most this time.

Buying and selling physical silver will never work the same as there is no make believe silver to sell. It's all physical and all real. There can only be supply and demand that raises and lower prices. It's also much more silver in the world than gold, so as long as it can still be made it will never have the same value as gold.

I basically, sorta, understand how all that works. It boggles my mind, though, that the people that do this seem to have a LOT lacking in their lives? I can't imagine a job were you do, basically, nothing productive? At the end of the day you used a sort of "Loop Hole" reserved for the wealthy, to make them, more wealthy. that's the way I see it anyway. But then I'm fairly simple minded.

 

[Member 34319]

I basically, sorta, understand how all that works. It boggles my mind, though, that the people that do this seem to have a LOT lacking in their lives? I can't imagine a job were you do, basically, nothing productive? At the end of the day you used a sort of "Loop Hole" reserved for the wealthy, to make them, more wealthy. that's the way I see it anyway. But then I'm fairly simple minded.

Whoever invented the idea of shorting shares was a genius. The fact it is allowed means that they will essentially allow anything so long as they can profit from it.

Let's all recall the fact that insider trading is illegal. And folks like Nancy Pelosi can buy millions in Tesla stock prior to Biden's inauguration as he then puts forward bills to switch all fleet vehicles from gas to electric shortly after elected...

They will never hold those types of folks accountable. No change in law or procedure.

Yet, after one short squeeze by a group of people in the internet, which has been performed before (many times) buy by rich broker firms, and they are looking to change the laws and procedures.

Casinos always win!

 

[Mikej]

Whoever invented the idea of shorting shares was a genius. The fact it is allowed means that they will essentially allow anything so long as they can profit from it.

Let's all recall the fact that insider trading is illegal. And folks like Nancy Pelosi can buy millions in Tesla stock prior to Biden's inauguration as he then puts forward bills to switch all fleet vehicles from gas to electric shortly after elected...

They will never hold those types of folks accountable. No change in law or procedure.

Yet, after one short squeeze by a group of people in the internet, which has been performed before (many times) buy by rich broker firms, and they are looking to change the laws and procedures.

Casinos always win!

This is what I understand is happening. Those people up there don't work for the tax payers anymore. They think they are some sorts of gods or something.

 

[Mephistopheles]

Taken from Wikipedia

The practice of short selling was likely invented in 1609 by Dutch businessman Isaac Le Maire, a sizeable shareholder of the Dutch East India Company (Vereenigde Oostindische Compagnie or VOC in Dutch).[11] Edward Stringham has written extensively on the development of sophisticated contracts on the Amsterdam Stock Exchange in the seventeenth century, including short sale contracts.[12] Short selling can exert downward pressure on the underlying stock, driving down the price of shares of that security. This, combined with the seemingly complex and hard-to-follow tactics of the practice, has made short selling a historical target for criticism.[13] At various times in history, governments have restricted or banned short selling.

 

[Cavedweller]

Buying and selling physical silver will never work the same as there is no make believe silver to sell. It's all physical and all real. There can only be supply and demand that raises and lower prices. It's also much more silver in the world than gold, so as long as it can still be made it will never have the same value as gold.

Not quite. Like other commodities, most silver trades on the commodity exchanges are futures contracts. This is strictly paper. I remember reading that something like 90% of commodity futures are settled by another contract rather than by actual delivery of the commodity. So in that sense it is "make believe" silver. You can't buy silver for the spot price. The spot price is the price of a paper contract. If you want physical silver, you have to pay spot plus the premium. That is the "real" price of silver.

 

[Member 34319]

Not quite. Like other commodities, most silver trades on the commodity exchanges are futures contracts. This is strictly paper. I remember reading that something like 90% of commodity futures are settled by another contract rather than by actual delivery of the commodity. So in that sense it is "make believe" silver. You can't buy silver for the spot price. The spot price is the price of a paper contract. If you want physical silver, you have to pay spot plus the premium. That is the "real" price of silver.

Don't even get me going on futures!!! I took a short class on futures and I still don't quite understand how that whole system functions or is allowed.

 

[raindog]

This is a once in a lifetime chance, this will never happen in our lifetime again.

This once-in-a-lifetime event has already happened once in my lifetime.

Silver Thursday - Wikipedia

en.wikipedia.org

 

[Flopsweat]

Don't even get me going on futures!!! I took a short class on futures and I still don't quite understand how that whole system functions or is allowed.

We need more of these for the Millennials. Many of them seem to have no futures.

 

[raindog]

Don't even get me going on futures!!! I took a short class on futures and I still don't quite understand how that whole system functions or is allowed.

I'm not sure what the mystery is.

Let's say you manufacture Twinkies. You use a lot of sugar. You want to know what sugar is going to cost you in 3 months. So you lock in a price for sugar by buying a futures contract.

Me, on the other hand, I'm growing cane sugar by the acre. I want to know what I can sell it for in 3 months. I agree to sell you so much sugar at such-and-such a price in 3 months by selling you a futures contract.

If sugar goes way down in price, too bad so sad for you. If it goes way up in price, too bad so sad for me. There's nothing immoral about futures - just a way to lock in prices and certainty.

Now, on the other hand, some people speculate on these contracts by buying and selling them when they have no need for them. They're just betting the price will go up or down. That's something else (a secondary market that is huge), but the fundamental of a futures market is need vs supply in the future.

There are silver futures because some people mine it and some people consume it (for industrial or jewelry purposes, etc.)

I wish I could buy some large rifle primer futures.

 

[Member 34319]

I'm not sure what the mystery is.

Let's say you manufacture Twinkies. You use a lot of sugar. You want to know what sugar is going to cost you in 3 months. So you lock in a price for sugar by buying a futures contract.

Me, on the other hand, I'm growing cane sugar by the acre. I want to know what I can sell it for in 3 months. I agree to sell you so much sugar at such-and-such a price in 3 months by selling you a futures contract.

If sugar goes way down in price, too bad so sad for you. If it goes way up in price, too bad so sad for me. There's nothing immoral about futures - just a way to lock in prices and certainty.

Now, on the other hand, some people speculate on these contracts by buying and selling them when they have no need for them. They're just betting the price will go up or down. That's something else (a secondary market that is huge), but the fundamental of a futures market is need vs supply in the future.

There are silver futures because some people mine it and some people consume it (for industrial or jewelry purposes, etc.)

I wish I could buy some large rifle primer futures.

Thats a fairly brief explanation and it surely doesn't cover the trading aspect of futures.

Which in itself is a rabbit hole.

From a business standpoint, what you have just typed is very straightforward. A business needs sugar, sugar company wants to sell you sugar. You then bet on needing X amount, so you negotiate with sugar company to buy X amount over X period of time at X rate. This is basic business practices and very common, it's usually just called a contract not a future. It's also kind of what backordering is. I backorder X amount at a given rate.

Trading futures is a whole other animal. People not even directly involved with the business or even in that industry are involved, and it's a huge web of nonsense in my opinion.

My main point being, folks should not confuse trading silver stock and physical silver bullion.

 

[nehalemguy]

Still waiting.......

Where's that $1000 oz price?