BIG NEWS for SILVER - SILVER PRICE BREAKOUT CONTINUES

Key Concepts

• Silver Price Surge: Current rapid increase in silver prices, approaching all-time highs.
• "Unobtainium" Scenario: Potential for silver to become extremely scarce and difficult to acquire.
• SLV ETF Borrowing Fee: Significant increase in the cost to short shares of the iShares Silver Trust (SLV), indicating market dynamics.
• Long-Term Investment: Emphasis on silver as a patient, long-term holding rather than a quick profit opportunity.
• Gold-Silver Ratio: Implied comparison of growth and potential for silver to catch up to gold.
• Technological Demand: Increasing use of silver in technology and manufacturing.
• Junk Silver: Silver coins of lower purity or older minting, often available at or near spot price.
• Troy Ounce: Standard unit of weight for precious metals.

Silver Price and Market Dynamics

The price of silver is currently soaring, sitting at $48.79, up 1.42% for the day. It is now less than $1 away from reaching a new all-time high. This surge is occurring as gold has already hit a new all-time high, nearing $4,000 an ounce, trading at $3,966, up 1.87%. While gold is moving up faster, silver's ascent is described as "wild."

There has been some intraday volatility for silver, with overnight highs reaching $48.74 and a dip to $48.19 when US markets opened, followed by a recovery. The overall sentiment is that the price is on an upward trajectory.

Dealer Inventory and Scarcity

A significant indicator of the current market is that one dealer, Monument Metals, is completely sold out of American Silver Eagles, including the 2025 minting. This has led to the assertion that silver could become "unobtainium" this month. While some dealers still have Silver Eagles in stock (e.g., SD Bullion), the low quantity pricing for items like Czech wire at $56.76 is noted, a stark contrast to prices around $17 six years ago. The speaker suggests shopping for deals, mentioning that junk silver is available at spot price on SD Bullion.

International Demand and Investment Trends

An article highlights that silver has become Pakistan's new investment obsession. In Pakistan, silver is being purchased in 10-tola bars (approximately 3.75 troy ounces each) and even 1-kilo bricks. Over the past three months, both the price and consumption of silver in Pakistan have more than doubled, making it a favored investment. Traders report that silver is being sold on the black market due to a surge in buyers amidst rapidly climbing prices.

However, experts and goldsmiths caution that while silver prices are rising sharply, it is a long-term investment requiring patience and market stability. The increasing demand in technology and manufacturing is acknowledged, but it is emphasized that silver is not a "get-rich-quick" investment and rewards long-term holding. Many new buyers are entering the market, attracted by the rising price, but the speaker stresses the importance of a long-term mentality for precious metal investments.

Historical Performance and Future Potential

A chart illustrating gold and silver's percentage growth since January 1970 shows gold with almost an 11,000% growth (most of it in the last 5 years) and silver with 2400% growth. The speaker points out that silver needs to quadruple in price to achieve the same percentage growth as gold over the last 55 years, suggesting significant upside potential.

According to a Scottsdale Mint article, silver is entering a "new price reality," with the question being whether it will reach $100 or $200 per ounce. If gold hits $4,000 per ounce, silver is projected to go above $52, which would be a new all-time high.

SLV ETF Borrowing Fee Spike

A critical development discussed is the explosion in the borrowing fee to short the iShares Silver Trust (SLV) ETF. Bob Coleman reported that the borrowing fee has almost tripled from the previous week, reaching nearly 7%. Furthermore, there are less than 10,000 shares available to short.

Implications of the SLV Borrowing Fee Spike:

• Reduced Short Selling Pressure: This makes it more expensive for those looking to bet against silver, potentially removing downward pressure on prices.
• Potential Short Squeeze: The increased cost and limited availability of shares to short could trigger a short squeeze, forcing short sellers to buy back shares, thus driving the price up.
• Price Rally: Grock's analysis suggests this could lead to a 5% to 8% price rally in the following week.

Investor Sentiment and Outlook

A poll on the speaker's YouTube channel revealed that 81% of viewers believe silver will hit a new all-time high this week, with the price currently only a dollar away. While the rising price is positive for the market, it presents a "double-edged sword" for those looking to acquire more silver, as it becomes more expensive.

Despite acknowledging uncertainty about the immediate future, the speaker notes that silver is up $20 year-to-date and sees little that can stop its momentum. A new all-time high is anticipated within the next couple of days, with the expectation of some resistance and volatility along the way. The speaker plans to post an updated video if a new all-time high is reached and invites viewers to share their price predictions in the comments.

Conclusion

The current market for silver is characterized by a significant price surge, approaching all-time highs, driven by a combination of investor demand, potential scarcity, and a dramatic increase in the cost of shorting the SLV ETF. While short-term volatility is expected, the long-term outlook for silver appears strong, supported by its historical performance, increasing industrial demand, and the potential for further price appreciation. The emphasis remains on silver as a long-term investment, requiring patience and a strategic approach to acquisition.