Peter Schiff Spot On. Kevin Bambrough Bravo. Why Silver's Going to Moon Shot Soon.

Peter Schiff sums it all up. Kevin Bambrough Nails it.

This is a superb article written by Kevin Bambrough (link provided at end of this post)

Kevin Bambrough, in his article "The Silver Squeeze: Market Manipulation and the Coming Storm," delves into the potential for a significant silver bull market and exposes the fragility of the current silver market. Bambrough begins by recounting a personal experience from his time at Sprott between 2002 and 2013, which serves as a stark illustration of the challenges in the silver market.

During 2005-2007, Sprott accumulated a substantial silver position through bullion bank certificates that promised 5-day delivery. However, when they attempted to take delivery, what should have been a routine process turned into a nine-month ordeal. The counterparties provided a series of excuses for the delays, claiming the silver would come from various locations including New York, Chicago, England, and finally China. This experience revealed that the counterparties had likely only purchased futures contracts without possessing the physical silver, despite having taken Sprott's money.

Bambrough then shifts focus to the modern silver market, highlighting the unprecedented pressures it faces today. There has been explosive growth in industrial uses for silver, including applications in medicine, electronics, solar panels, and electric vehicle infrastructure. Furthermore, an impending robotics revolution is expected to require massive amounts of silver for solid-state batteries and electronics. The growing need for energy storage solutions to support renewable energy sources is also contributing to the increased demand for silver.

Drawing parallels to historical events, such as the French currency crisis when silver left the country, Bambrough provides a historical perspective on the current situation. He suggests that the inflation-adjusted highs from the 1970s, which would equate to over $200/oz today, are likely to be exceeded in the coming bull market.

Several factors are contributing to the potential for a significant silver bull market, according to Bambrough. These include depleted global silver inventories and central bank holdings, unprecedented permitting challenges and delays for mining projects, and a structural and growing industrial demand. He also points to the history of major exchanges failing to deliver in other commodities, expanding physical premiums, and the increased fragility of the monetary system as additional factors.

What sets the current situation apart from previous bull markets, Bambrough argues, is a combination of unique circumstances. These include depleted strategic stockpiles, higher industrial demand already in a structural deficit, and a greater dependency on silver for new technologies. Additionally, the global financial system is more interconnected than ever before, and there is a larger money supply relative to available physical silver. Emerging technologies are also requiring unprecedented amounts of silver.

Bambrough predicts a potential silver delivery failure, which could be triggered by various events. These might include a major player like a sovereign wealth fund or large investor demanding delivery, physically-backed ETFs failing to source metal, a hedge fund demanding delivery, or a nation-state securing strategic supplies.

Bambrough emphasizes the importance of physical possession of silver and warns of a potential cascading effect of delivery defaults that could expose the vulnerabilities of the paper silver market. He paints a picture of a perfect storm brewing in the silver market, with multiple factors converging to create a potentially explosive situation for silver prices and availability in the near future.

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Below is Kevin’s article. A superb read.

https://dailyreckoning.com/the-silver-squeeze-market-manipulation-and-the-coming-storm/