#silversqueeze

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Goldhedge said:
I wonder why they need silver at such high purity. Wouldn't gold be a better alternative?
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Nope, remember SIlver has the Highest Conductivity. So whatever the application is they must need absolute best conductivity they can achieve. Impurities would also greatly affect the conductivity at very small levels. I imagine for something like a magnetic sensor (magnetism then induces the current) that the absolute best conductivity would result in the Best sensor / most sensitivity to sensing whatever they are trying to find.

Think of impurities as that Slow Ass driver in the Left lane. Just one stupid Copper ion could back up the whole road.
 

When did the good delivery bar specs change? I imagine they haven't changed in purity needed in well, like ever. Plus, if you are running a refinery what customer are you going to listen to and send to first? The one that pays the most and gives you the best margin right? No one will pay more than the military for extremely pure product.
 
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I went and found the LBMA good delivery bar specs. Ya, this isnt't that hard. Most any bar I have of silver would/should qualify. Would be EASY for a refinery to melt and recast. So I don't buy this as a good reason for the refinery backup. Perhaps it would be a volume issue but melting 3 9's silver to remake bars could be done incredibly fast. Five 9's silver would be 999.99 per thousand silver.

Technical Specifications

www.lbma.org.uk

The permitted dimensional ranges for a silver Bar are as follows:

  • Length (Top): 300 mm +/- 50 mm Undercut: 5º to 15º.
  • Width (Top): 130mm +/- 20 mm Undercut: 5º to 15º.
  • Height: 80 mm +/- 20 mm.
Fineness: the minimum acceptable fineness is 999.0 parts per thousand silver.
 
I did not save the page where I read it, but there is little actual difference between three 9s and four 9s fineness. I don't think that level of purity of bars has anything to do with the refinery backlog. There is a big difference between 90% or 92% silver and 99% however.
 
Trust me.... there is a small difference. I mean, let's do the math for a 1,000 oz bar.

That is 31,103.4768 grams. A 3 nine bar could therefore have a maximum of 31.1 grams of impurities
A 5 nine bar would have a max of 0.311 grams of impurities

So the difference is a maxiumum of 30.788 grams of impurities.
I would not fault anyone for saying that is a relatively small difference. And that is true.

However, if you MUST have that superior fineness it takes a LOT of work to remove those additional 30.788 grams of impurities.
 
It matter most in the manufacture of semiconductors. There are lots that get rejected because of impure water, metal irregularity and even the motion of the earth and vibration during the manufacturing process.
 
Well impurities sure. I did some things making doped silicon. But that was for like 100 nm stuff. I dont know how they even accomplish the new what like 2 nm? That doesn't seem possible even to me.
 
Global free float vault stock at the beginning of November was purportedly 19,094.174 metric tons (see here for details). This is 608.122 metric tons less than what was reported two months ago at the beginning of September.

There is good reason to think that the global free float is actually much less than that given that JPM told India that they would have to wait until November to receive silver they bought from the LBMA in October. I have estimated that the LBMA might still owe India ~690 metric tons of silver.

We can derive two cases for upper and lower bound estimates.

Lower Bound

Assume global free float silver vault stock is 19,094 reported - 690 encumbered = 18,404 metric tons. That would be 591,702,300 troy ounces. Let's continue to assume an average cost of $60/ozt in a hypothetical scenario where buyers acquire all available free float silver.

In that scenario, the total global free float of vaulted silver represents $35,502,138,000 or $35.5B.

Upper Bound

Assume global free float silver vault stock is 19,094 as reported. That would be 613,886,400 troy ounces. Let's continue to assume an average cost of $60/ozt in a hypothetical scenario where buyers acquire all available free float silver.

In that scenario, the total global free float of vaulted silver represents $36,833,184,000 or $36.8B.

Conclusion

The silver ocean (global free float) is still evaporating. Two months ago, this exercise estimated the value of the silver ocean at $38.6B. In two months, the silver ocean has shrunk by roughly $2B to $3B.

As a reminder, this represents just 0.178% to 0.184% of the $20T that is purportedly currently available capital. That's all it would take to wipe out every troy ounce of silver that is currently available in the world's major exchange vaults (LBMA, COMEX and SGE/SFE).

The silversqueeze is going to be epic.
 





 
SIlver Deliver day today I believe. LOTS of contracts closed yesterday but still over 13,000... But the Spot-Futures spread (EFP) is going positive. This is a GOOD thing IMO regardless of all the blather about backwardation. The evidence shows that when the EFP goes larger positive you have a good run coming and BIG negative indicates a Top. We are at about 40 cents positive right now Up 81 cents today.
 
$53.24 oz as we speak. Might rocket to record by close of day the way its going.

Days of sub-%50 silver are gone. I called it three days ago.
 
If we can get above 54.35 we can run to 60. If we reverse here then it's back to 50. Consolidation between those 2 numbers would be very good.
 
The whole registered vs. available is deliberately confusing. Hate to say it, but the Chinese might be the good guys trying to find real price discovery in PM spot prices. Everybody is getting fatigued from the games the banks have been playing with derivatives.
 
Since the Bankster's took control of the USA in 1913 it's be Downhill/Scam ever since
 
Voodoo said:
I don't think that it makes the Chinese the good guys. More like the enemy of my enemy is my friend.
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Agree 100%

The Chinese are no better. Just doing it a different way as the original Bankster's ( the Private Bankster's that set up the Bank Of England in 1694, then the Federal Reserve in 1913 ) have not been able to get their hooks fully into the Chinese.

But the Chinese Leadership is the same Failed/Corrupt humans, so the Chinese won't escape the Financial Implosion/Collapse.
 
nickndfl said:
The whole registered vs. available is deliberately confusing. ...
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There is essentially no difference. Metal moves from one category to the other easily and instantly as desired by the owner. This is why I always do my number crunching/analysis combining both together.
 
pmbug said:
There is essentially no difference. Metal moves from one category to the other easily and instantly as desired by the owner. This is why I always do my number crunching/analysis combining both together.
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It's part of the spoofing process to create the illusion of surplus or deficit.
 
Its really easier to see how hard they are fighting and shorting by watching the junior minors. Like FSM, EXK and the SILJ ETF. Its easier to short stocks and boy do they love shorting stocks. They've stepped on em at least twice today already. Even with silver up $1.5 mostly unch still on the stocks.
 
Voodoo said:
They are really fighting the $59 level and we popped out there for an hour or so.... I imagine they are in major pain now.
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Personally I think $59 is the picket fence. $60 is the trench just behind it.

Numbers do play on human psychology. It's why they price an item at $1.99 & not $2 - because the 1's is the thing that registers in ur mind & the extra $0.01 makes it a $2 that registers.

So Silver has only ever had a 5 handle in front of the price. Once it has a 6 handle in front of it, the spell of $50 + is broken & everyone knows that $60 + is the new reality.

Example is the 4 minute mile. Was said ( by scientists/doctors ) that the human body couldn't break the sub 4 minute mile. The sub 4 minute mile was broken in May 1954 & yet it was broken again in June of 1954. Why ? because the 2'nd runner knew it could be broken - Belief.

So breaking $60 Silver could cause a run towards $70 & the big/major players know that & will do all they can to stop that happening.
 
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