13 Comments
User's avatar
Jay Bremyer's avatar

I've been reading about Silver and Gold and Precious Metals for a long time and sort of know my way around the investment landscape but, thank you, Lau, you've accellerated my understanding and given it more context. I appreciate that and applaud your writing skills. Today or tomorrow should be your day off with family. Go see/do something special, and let us have a glimpse of that, too, next week. All the best!

Lau Vegys's avatar

Thank you, Jay. That’s probably the best compliment an analyst can get. And yes, Sunday is my day off. :)

Luke De Celis's avatar

Industrial demand is catching up to a post peak supply. Physical holders will determine what price they want and theyre generally stubborn.

Al Christie's avatar

Thanks. I first invested in physical silver bullion in the 70s ('74,I think) at $1.65/oz, then by pure luck got nervous and sold by Jan.1980 very close to the peak, at $49. Have kept some junk silver over the years. Started investing a little again, in ETFs and a couple mining stocks. I've tried to keep informed about the supply and demand situation, but never knew anything about the derivative markets in China. Fascinating. How did you find this info?

Lau Vegys's avatar

Thanks, Al. That’s quite some timing, I have to say! As for your question... mostly just following breadcrumbs and being terminally online. :)

Dr. Michael Olmstead's avatar

It is interesting to me that significant "taking delivery" on silver and gold contracts has been a serious issue the last 2-3 years in the west. Who has been taking large scale delivery, and where has this bullion ended up? This coupled with China's spot price discovery move's may be effecting the juggernaut that the West has had on precious metals pricing and manipulation, thus making the Chinese exchanges more pre-eminent. If true, this is a tactical move that has multiple meanings and consequences.

Lau Vegys's avatar

Thanks, Dr. O. Yes, exactly. I think that’s the bigger question here. I’ve written about this a few times now, including here, for instance.

https://www.snafuinvesting.com/p/silver-really-is-the-elephant-in

Dr. Michael Olmstead's avatar

I do not think that China is doing this accumulation to help their people or their industries. I feel (speculatively) that it is to inhibit the West, particularly the USA in yet another way. I guess it could be summarized a little more crudely. If you can't destroy; just debilitate and they will destroy themselves. I look forward to the next recommendation Lau. I also am hoping for a significant pull back on GLGDF and spot Gold and Silver for some additional opportunities. All the best, Dr. O

Baku's avatar

Excellent. Exactly the assurance I need to double down on Silver while it lasts at this discounted range. Thanks.🙏

Lau Vegys's avatar

Thank you, Baku! Glad you found it useful. Just make sure any position fits your own risk tolerance. ;) No matter how bullish the case, it’s never worth losing sleep over a position.

Baku's avatar

Hi Lau,

Thanks for the cautionary prompt. Appreciated. Indeed, I will ensure I strictly control my position size based on risk tolerance.

You certainly are one of a kind to find jewel in the haystack

Regards

Baku

dr. b's avatar

Research extraordinaire. Thanks Lau.

Lau Vegys's avatar

Thank you, dr. b! Much appreciated.