For those watching the silver futures markets on February 5th, it looked like a bloodbath. It seemed like silver price was unaffected after the Western futures markets tried to hammer the price down by raising margin requirements. In the East, however, silver price was trading at around $130/ounce. Suddenly, the price of silver on the SHFE (Shanghai Futures Exchange) plummeted.
The effect of this caused the Western futures markets' price to tank down to around $67/ounce. Of course we know who was responsible. Bad actors, both individuals and banks.
(Created with Bing)
(Source: Kitco)
While paper money panicked, silver stackers yawned. Nobody was selling physical silver for $67/ounce. Then, the SHFE made an announcement confirming what everyone suspected: price manipulation.
Six accounts under "actual control" exceeded the daily trading volume limit for silver futures contracts. This means someone had to go in and heavily short the market to tank the price. This wasn't automated. As a result, the SHFE stepped in and put restrictions on them to prevent opening any further contracts.
Unlike the West, where the futures markets encourage this type of criminal behavior, we see the futures markets in the East stepping in and doing something about it. Take note here. I'm not a financial advisor, but I'm making two predictions here.
- Paper silver markets are dying and will default in the near future, at least in the West
- The Western futures markets know they're losing to the Eastern futures markets, who will likely end up dictating spot price in the near future
What we're seeing here are acts of desperation from a dying beast. Paper is dying. Physical silver demand hasn't reduced. It's increasing and outpacing what can be mined per year. I think the storm is starting to build, and silver is just getting warmed up before the price takes off.
Buy DUO and stake to receive Hive dividends, tip others, have your posts curated, and grow Hive!
https://tribaldex.com/trade/DUO
https://hive-engine.com/trade/DUO
Do you like stacking gold and silver?
Are you new to Hive, or know someone new to Hive, and want help and support?
Have you been on Hive for a while and want to help new Hive members? Join HOC and help us grow Hive and encourage new members!
Posted Using INLEO
