/biz/ - Business & Finance

>>50660369
The problem is not the COMEX. Wallstreet will source the silver and do whatever it takes to keep it afloat. The big chungus in the room, the Mac-Daddy is the BOND MARKET. The amount of cash sitting in the bond market is literally twice the size of the GDP. It's almost the size of the housing market. Imagine what a ridiculous situation: Somehow, some way there is a magical pool of resources just sitting on the sideline earning interest. That debt is otherwise known as "leverage". Borrowed money, created by banks, has the effect of inflating balance sheets and propping up asset prices. People "feel" wealthy because their house is worth $300,000. They look at their 401k and it's worth $1M. They FEEL great.
However, once people begin to demand their cash from the Treasury we will all discover that it is all fake.
Consider the balance sheet of two people. 1Boomer father has $1M Cash. He lends $1M to his alcoholic son. Look what happens to the balance sheets: Boomer dad loses $1M cash but he gains a IOU $1M. Alcoholic son's balance sheet expands $1M. He goes and spends it on coke and hookers. Now what? The asset was consumed! The son can only pay the interest. However, Boomer dad's balance sheet still says he has $1M assets. It can never be repaid and needs to be written off for a fraction of what it is worth. That truth permeate EVERYTHING in financialized America.

>>50652192
In all seriousness, it appears that no one wants to see MOASS kick off. But at the same time, all of the legal framework that allows retail to DRS their shares is causing them some SERIOUS problems.
It does feel like they are in complete control, as if an algorithm is holding things together on the day to day price action. But we are also picking up clues that there are little brush fires burning behind the scenes.
I personally think they have no way out of this trade. And the legal framework standing in place is sort-of doing its job of protecting retail (stupid shit to lull us to sleep so we blindly trust these assholes. They never dreamed in a million years something this big would be sniffed out by the internet and thousands of people who call their bluff despite all of the lies and misdirection and FUD they threw our way).
I often wonder why the government doesn't just step in and try to grab some "brownie points" by pretending they caught a fraudster. The reason is the short position is possibly fatal to the entire system. All stocks are highly leveraged assets, and any sizeable amount of SELLING by Wallstreet is in no way able to be absorbed by retail. The "collateral" they hold is worthless as the means to bail them out of an illiquid short covering. We could damn well see a flash-crash of the stock market to untold of levels as an event that unfolds. We could naturally step in and buy up the entire world, theoretically. MOASS, on paper is VERY real. It's going to be bizarre. Don't think post-MOASS everything will be like normal except we are all millionaires. We could damn well have bought ourselves into the ultra wealthy. Not that the government will let that unfold, as another distinct possibility.

>>50640293
>>50640362
pretty sure its trotsky

>>50616082
This. The only thing that concern banks are that their books stay balanced. Even if they have to hyper inflate the money supply, they can survive. Deflation is what kills them.
The catalyst plays out like this: A major event happens to where a large holder of US Treasuries demands their CASH. The government has no cash in the treasury to pay and so they have to print even more. The original investors do not "roll over" their investment and this creates a devastating demand for resources on the government and they are forced to literally print the cash Zimbabwe style. Once the bond market gets tired of hemorrhaging value to inflation, money will be demanded by the bond holders and they will seek safety elsewhere.
Unfortunately, many of the bond holders are jews who do this on our behalf. Such as pensions and insurance companies. We supposedly have massive stores of wealth to pay for damaged cars, housing and health when in reality the real money is gone and replaced with toxic paper. Society as a whole is bankrupt, it's just not been actualized yet.

>>50563477
Like most commodities, the price is determined by futures (as opposed to something like onions which are a cash market). This allows the price to be set on a paper exchange as opposed to supply/demand. Every week you can see examples of slapdowns in the price of silver due to shorting, and the leveraged nature of derivatives is a great way to attack the margin accounts of any small silver speculators in the derivatives market (since they are settled daily).
You also have paper silver ETFs which it is suspected is extremely short on physical supply relative to what they claim they own. So this is another means to inflating the supply of investable silver. Bullion banks also do things like "leasing silver", which is likely just another means of spoofing the market, or allowing an extremely short bank pretend to have the collateral necessary to maintain the position.
On the physical side, you have the Treasury refusing to mint ASEs to the meet demand, which is against the law, in order to prop up premiums due to scarcity. This in turn increasing the price of all physical metal and allows the market to soak up more cash than it can normally sustain at this price level .

>>50546039
We will always need a universal commodity to facilitate trade. The important fact to take note of here, in an economic lifespan that lasts several generations, is that our "money" used to be a positive good. It was an asset in and of itself. You could exchange it for gold, and it's change was minted in silver and copper. Two extremely valuable and useful metals in and of themselves.
Banks have distorted and twisted the money supply to be a unit of debt. We all have debts and taxes and this COMPULSION to work/toil to acquire more currency is the catalyst for maximizing the exploitation of labor and resources. A banks' bottom line is expanded by increasing debt, and even if it has to financialize and destroy the economy to do so, it will. Housing, education, healthcare, it's all comically expensive relative to what it SHOULD be. It is so high because these are all subsidized with loans and other financial machinations.
This is the big stupid trick. The banking sector is more akin to the grease on an engine. It is not productive in its own right, but it can facilitate SOME economic activity. But the banks just want to dump grease all over everything and basically ruin the economy with too much parasitism.

>>50523742
>I can't fathom the reason why someone would eat that loss just to short the stock. We really are going to bleed the hedge funds bone dry before they even start covering, aren't we?
The only answer is that their calculations showed they have 0% chance to covering without almost a complete loss. We all saw their financial statements, they literally have like $60-65BN in securities sold and not yet repurchased. That makes no allusion to WHAT PRICE they got when they sold. What if they accrued that much of a liability shorting GME when it was $10 per share and below? They do not mark that accounting to the market, it is a historical account of the original short price.
They also do not just have to worry about bankrupting their portfolio, but they could very well have under their management a pension or some other vital institution that is now going to have the legs kicked out from under them. Also, once this goes bust, Citadel and management are likely going to prison Bernie Madoff style for literally creating this mess for EVERYONE on Wallstreet/banks. They have burnt through enough political capital from 2008 and beyond, and they DO NOT want another Occupy Wallstreet to kick off a class warfare situation. What could be worse than seeing a union pension go bust, every union in the country will come together in opposition to demand a bailout the government cannot afford. This is not some magical accounting trick to make all this go away. Losses are very real. And the Fed/gov are having enough trouble keeping things afloat as they are. The entire country could very well collapse depending how bad things truly are.

>>50377930
Price is suppressed because if people protect themselves then banks can't pursue their inflationary policies. They need retards to keep their capital in overleveraged assets. Once capital flows from financial assets to commodities then the game is over. Normal price movement would/should reveal this, however the banks can never allow people to secure profits in the PM sector as that is the exact opposite of what they need to happen to continue inflating. The price adjustment will occur suddenly, once it is too late and the damage is already done. When the music stops, every seat will already be taken and the actualized losses of hundreds of trillions worth of bad paper will land right in your lap.

>>50350715
Silver is THE BEST in class for thermoconductivity, electroconductivity, and is part of the STRONGEST known alloy. It also has incredible medicinal uses.
We mine about 800M ounces per year (and declining) yet we consume 1BN ounces per year (and RISING.)
This is much more than just a shiny rock. It is an incredibly useful material that current prices are not high enough to meet demand. Basic bitch econ101 tell you silver is one of the best buys of your life. This is like 2020 and buying oil for $15 a barrel. It's free money if you have a little patience.

>>50328414
There is an ungodly amount of impossible (irredeemable) wealth stash in the bond and stock market. That capital will eventually seek safety in physical goods while inflation is raging at 10% with not a chance in hell of the Fed being able to raise interest rates. It's all a bluff, and you have to have the conviction to realize that your lying eyes are deceiving you.

>>50306760
The best defense for your PMs is secrecy. I wouldn't trust ANYONE with possession of my PMs. Multi millionaires who can jetset the globe often espouse the wisdom in having gold stored around the world, but that only really applies to them.
What we all need to understand, is the collapse of the money supply is due to leverage, and specifically a $46TN bond market. Literal toxic paper that is twice the size of the U.S. GDP. These are LOSSES. These are piece of paper where you put real money and resources IN and you will get nothing back OUT. We all own this shit toxic paper in Social Security, Insurance companies, Pensions, and our banking system. With the unwinding of this leverage you will see a massive sell off of all sorts of assets, including stocks and bonds etc. You will see tightening credit. Bankruptcy for business. Unemployment. State and local governments winding down spending. Collapsing tax revenues.
At its CORE, folks, the world is going to come to terms with an EXTREME shortage of goods and services once the credit card stops working. Everyone in the world is going to feel ROBBED. Politicians will be looking for someone to BLAME. People are going to feel let-down and violence, theft and a general loss of social order could easily break down. People may very well just see their livelihoods break down and decide to just go ahead and rob the vaults. We have no idea wtf is going to happen, but this shortfall of resources is not going to be taken lightly when people are scrimped and saved and invested their entire lives only to pay off their 30 year mortgage and student loans only to have the bottom drop out of the system. Paper millionaires are going to be feeling entitled and everyone up and down the line is going to be looking for EVERYTHING and ANYTHING that is not nailed down. If you feel wronged, don't be expecting any court to be upholding your claims anytime soon. This hot-potato is going be be burning RED HOT.

>>50252955
I personally advocate that people hedge their GME position with shtf investments. Yes, that absolutely includes boomer rocks. If GME saga unfolds with even a tiny fraction of what is expected then I am set for life, and should be able to navigate the future at the very least in the middle class with no financial worries. If the whole system begins to topple then I am hedged and will do quite well either way.

>>50233099
The banks that are playing around with money NEED for PMs to look like a bad investment. Taking wealth out of the financial system and chasing physical goods is how they are destroyed.
We have seen GME controlled ruthlessly for almost two years now, and PMs are the same.

>>50195576
To get 18 euro price/ounce you have to buy one contract of 5000 oz and you're getting 5 x 1000 ounce bars, if you manage to obtain them physically in the first place and you don't end up holding only some paper contract.
These bars have to be melted, cast into shapes of a specific weight, stamped, transported, etc. You might also pay VAT on it.
The dealer takes a cut too. The premiums are kinda high because the dealers are greedy and they want a bigger cut.
There is also a general trend to stop you from stacking by increasing this premium to make it look unattractive. What you should do is to hoard the cheapest physical you can find.

>>50171392
That is to be expected. The banks need to pursue an inflationary strategy and they need the obvious exit which is money commodities to not be showing real returns. Having a real understanding of economics and banking will allow you to act without being emotionally jerked away from the winning play. Until the bond market crashes and bad debts are written off in bankruptcy court, you are essentially exposing yourself to a tick time-bomb. This is going to blow up in our lifetime, if not in the matter of years. The Petro dollar is dead, and we are now running on fumes.

>>50166049
It is impossible. We spent the last 4 decades deficit spending and injecting the economy with leverage. They whole economy has to be dismantled, debts written off as losses, service sector jobs banrupted, employees going to work in productive sectors of the economy, massive amounts of brick and mortar stores that rely on cheap imports going out of business, demolished, etc. We literally are going to lose $700BN trade deficit. That is an insane amount of goods and resources that we import in excess of what we export. All of those jobs, real estate, taxes etc will all crumble as the world demands real goods for their produce instead of dollars.
Make no mistake about it, shit is fucked. Not even the boomers really understand because their entire adult lives we have seen increasing asset prices. But THEIR parents literally only ate out a couple times a year. They WASHED their aluminum to save money. People were impoverished relative to the false standards we are used to.
Fun fact: If you remove increases in debt/leverage into the economy, The U.S. GDP has not grown organically since 1983? All of this debt/leverage needs to be paid back, or written off as losses, and all asset prices will be cratering once you rip the leverage from the economy. You will not be living in a country that sells coffee and hamburgers to each other and just consumes endless streams of resources. It's coming to a close and no one is immune. The problem is literally bigger than governments, and central banks. You either own your capital outside of the banking system, or you are prepared to lose almost all value you have stored in paper claims.

>>49998675
The bond market is $46TN, unfunded liabilities is over $100TN, the stock market is overleveraged on average 17x, and real estate never kept pace with wages and also can not be sustained without borrowed money.
Sorry kid, all of this debt and leverage = shortage of real goods and services. Many of these "values" you think you own aren't real. To lock in your profits you actually have to have a seat when the music stops. The way to win this "game" is to lock in your profits as physical commodities.
The bond market being $46TN in size means it is losing 10% of its purchasing power every year due to inflation. 10% of the bond market is comparable to 20-25% of the U.S. GDP. All that purchasing power is being lost every year at current rate. As people get poorer, they will not be holding onto literal nothing. Tier 1 bank capital is gold, and the obvious choice to be owning while the whole fake edifice crumbles.

>>49984131
The Fed's balance sheet increased $20BN when they were supposed to be 'tapering'. The Fed has no choice to continue to buy up assets. For every bond they buy and take off the market, that gives someone else $20BN to go and spend on commodities or stocks etc.
The Fed can't taper, despite what their lying mouths say. So there are still gains to be made in riding the inflation wave higher. However, inflation will destroy any gains you think you will make on over leveraged financial assets. The trick is to lock your profits in by purchasing PMs. Ultimately, deflationary pressures are forcefully halted by revaluing metal much, much higher. There is historical precedent for it and ultimately the last ditch effort play the banks will rely on once the current system is about to collapse.

>>49831869
Get your money OUT of the system before it collapses. Everything is over leveraged, and leverage must be paid back. This includes your house, your stock portfolio, crypto, bank deposits. It's not real, just phantom money. What he is saying is that not everyone can actually access what is there 'money'. Their resources, there wealth. It. does. not. exist.
All of the problems we have in the world stem from this fact, that capital and debt are fungible. Instead of paying for goods with cash, we allowed banks to expand an ungodly amount of credit into the economy via government spending, mortgages, student loans, and credit cards. Now the bill is due and no one can make good on what they owe. Just as you owe money UP the chain to your landlord, bank, etc. These institutions also have obligations to YOU. And they are telling you that they can't pay you.

It's really that simple, folks. Forget all of the financial jargon and don't make it any more complicated than it really is. There is no "accounting solution" to make this problem go away. If I write you an IOU for $1M and I spend the $1M you gave me, tough luck. Your $1M 'asset' takes a haircut in bankruptcy court and maybe I can pay you back a small portion of it.

>>49714313
>you can't say nigger on /biz/

>>49669120
The Chinese struggle to even build ROADS because Africans are so difficult. The meltdown in the debt market that we all see coming will hit LONG before any major mining operations flood the market. It is literally nothing but Fud to keep you from heading to the exit. The banks need you to eat another serving of inflation and they can't steal your money if you don't own their liabilities. The whole reason metal prices are suppressed is also fud. They can't let money commodities prove themselves to be inflation hedges. There is a hard limit on how long they can do this though. Every single day that goes by people learn about metal and begin increasing their holdings. There is an exponential nature to this, as the case for metal becomes more apparent, the point of no return can approach seemingly instantly.

>>49667662
This is fud. They are DESPERATE for you to not run for the exit. Keep your money in bank deposits, the stock market, bonds, dollars.
Whatever you do, PLEASE do NOT sell your funny money for commodities. See? Look, First Uganda and next we'll have asteroid mining oooooooo you scared yet?
Folks, this is the most blatant lie of all time. Getting gold from Uganda is going to be like getting your dog to vacuum the living room. The movie empire of dust shows how hard it is for the Chinese to employ blacks in any capacity. They are lazy, dumb, and incompetent. They can't even operate a fucking gravel pit.
Get some of your money outside of the banking system. The $46TN bond market is impossible to pay back and that is why inflation is burning red hot right now. The debts can only be paid in devalued dollars and they are confiscating your purchasing power right now. And there is a LOT more inflation to come. Just when you think it can't get any worse, they will let it sit for two months and then ramp it up again. Do not get confused by what is happening. This is a scarcity of resources problem, relative to the amount of "claims" to resources in the system. You avoid the pain by buying and holding the "resources" not the "claims". Bank deposits, dollars, bonds, stocks are all CLAIMS.

>>49649501
p...please no the do buy Pee Ems. Buy finance paper blz

>>49597502
Gold is money.
Fiat currency is slavery.