think what's happening is has been intentionally shorted so that
authorized participants can take the middle because I think there's
there.
We have a silver, shortage people need the metal, they're going to get
it wherever they can.
They know only the authorized participants by the way as of the has
been set up can redeem the baskets of shares for the metal what it has
to do with.
Is there is a correlation, I don't think it's causation, but there is
a correlation between SLV and the derivatives markets and silver.
Meaning when
SOB fund flows are falling or their Shares are selling off, typically,
that's at a time in which the silver price Falls and vice versa.
It's not 100% match.
But generally people in the paper markets, whether the doing the
derivatives on comex are doing SLV as a passive because the ATF fun.
Well think about silver in the same way.
Generally go the same direction, so there is a correlation there and
lately, we've been having a ball falling SLV, share price, I want
explain, I think what's going on, because not only were having fun SLB
price but
The shares are being liquidated and Silver's being pulled out.
The fund will show you that silver squeeze really started at the end
of January beginning of February last year and that's when people went
into SLV and we're bidding up sov because they want to try and squeeze
silver, 110 million ounces of what was in the London Market because
that's where most sov silver store.
Not all of it.
Some is stored in New York, but I think about three quarters or so
from looking at the documents honest LV, are stored in London.
And so, what happened was 110, million ounces over those three days.
Last two trading days of January the
Of February was silver.
Squeeze people into sov 110 ounces, were allocated in London to SL B
and so it got an influx is silver because people were demanding shares
and then we started to see a runoff on the loan in comics markets.
And as I'll be selling off after silver.
Squeeze, and I think people generally took this, especially General is
took this to mean, well, Sav selling off.
Nobody's interested in silver, and that's quite the opposite of what's
going on.
I've been documenting, the runoff of silver stocks on both the comex
and the London Market.
In two main repositories for silver, at least industrially also for
investment demand and the Western World certainly, there are the
places you can get it, but the two big ones and they're the two
biggest stores of millions of ounces of silver, right?
Well, it's been a big run off.
We've had gosh, I want to say without looking the numbers about 70
percent runoff in silver and comebacks don't quote me on that, go back
and look at the numbers but it's been the majority of it.
Since silver is going to begin since here.
So if that's and also London recently, I put up on the channel how
London is seeing a precipitous Decline and silver.
Of course, if you want to follow on in markets, I recommend run a menu
Ronan, mainly a bullion star?
Who does excuse me, guys, I've got allergies.
So I'm doing my best to make it through this one, but Ronan, mainly is
a good guy to fall at bullying star.
If you want to fall in love Market, I follow him and several other
people at caught cover London market and also look at the charts and
things as published by.
I'll be man, other sources and what was funny is all this always been
robbed.
So what's going on?
Why is this happening?
How can there be such incredible investment and Industrial demand for
silver?
Remember the last four years?
We've running a silver deficit from a yearly mind Supply perspective
to Industries demanding more than the mines can put out.
So the 2022 would be the fourth year.
According to the silver Institute in metals Focus, which does the
research.
If that research is valid and I have no reason to believe, it's not
probably the most comprehensively put together research on that
subject that we can find certainly not, without errors, I would
imagine, but probably the best data resource.
So we know we're in an era of declining above ground, silver,
inventories, declining Supply.
When relatively speaking.
To command and we know it's a weird place getting harder to find.
We know that physical is being drained out of the comex.
It's also being drained.
It has to be on my show you that here.
If you look at the screen, this is a silver Oz.
Hell this is silver squeeze, and this is now and the overall silver Oz
held in London, for SOB has fallen from almost 700 million to just
under 500 million.
Sir, talking to 200 million decrease.
That means that you authorize participants a redeeming shares, but
silver SLV is falling.
So
Buddy wants to film school, but silver prices falling.
Well, I've talked about coming for, his talk, about SOB this time.
Why does SLV even matter?
Why does any of this matter was?
I said a lot of General is get into this.
If you're getting into it through, you know, your retirement account
or through some sort of fun, this is a passive ETF and get exposure to
Silver.
But there's some things that I wanted to point out the price of SLB as
expected to lag silver, because the expenses are taken out of the fund
itself.
And So eventually, it will have a little bit less performance.
Rented, for the amount of me amount of management, fees for the people
that are running the trust, and so sov will never 100% track.
The price of silver is always going to fall behind a little bit.
But that's a fairly nominal amounts.
Not like we're talking five or ten percent, it's a lot less than that.
It's a normal management be so we expect SLV to lags or Price a bit
because of that Dynamic.
But what's happening is we've had a free-form crash from about 27
bucks to somewhere around 1750, whatever it's trading at.
Now at the same time, Silver's being pulled out
Now, usually, when Shares are redeemed in an equity, that's actually
bullish.
And when I take you to Investopedia, this is an article on stock
BuyBacks.
So our stock BuyBacks a good thing or not, there's controversy around,
there's something I've written on Seeking Alpha about it in the past
before.
But I want to bring you to something that most marked participants
believe happens.
When you reduce shares in any Equity, it generally means a buyback
will create a level of support in the stock price.
So, for example, what's happened, the last
Ten years during this era of easy.
Money is a lot of companies took on debt and did share BuyBacks at the
same time that put a floor under the price of their share.
Why?
Because you're just drawing chairs.
Well, if there's x amount of demand and less shares, it means price
should go up because there's the same amount of a less shares.
Okay.
Now if you had issued more shares on top of what you already had
without destroying any previous to it, you would think the share price
will fall because there's the same amount of investors but more
shares.
That's why when you dilute a company by issuing a bunch of shares at
once and best
Generally don't like it.
They do like BuyBacks, if they plan on being in that chair for a while
because it tends to support the price.
So, why is this not going on SLV?
We have a Redemption and silver.
Here you can see here and yet the price is falling and you would say,
well, Rob.
That's because there's there's less demand people, redeeming sure,
sure.
But you're also creating less shares in the market.
And remember, the retail guys, when they sell the share, can't get the
silver.
It's not like people are selling their Selby to get the silver.
Okay?
They may be selling.
Because silver is not at a great price, but when you destroy shares
and you still have extra man, you would expect the price to go up, not
down.
So what's happening is SLV is being liquidated right now and the price
is going down.
Why is that when you destroy shares in an otherwise equal environment?
You know, assuming demand hasn't just cratered, which I don't think it
has because physical demand for the metals is really strong.
Then it's counterintuitive that the price should bowl.
And one of the reasons is because there's Big Short.
And on sob.
And so this site for Intel tells us what it is.
Right now, the shares are short, 59 million sources, the New York
Stock Exchange.
Okay, where else have you trays and 59 million shares short?
I've seen this go as high as over 60 million within the last few weeks
and when you have a short interest on a stock, it tends to depress the
price when people are borrowing shares to short it with the
expectation of buying them back at a cheaper price later, that's what
shorting is.
It generally puts it downward price movement or downward price
pressure on the
Doc, I think it's not the Redemption into silver by the authorized
participants.
Remember the authorized participants are the only ones.
Sorry, let me go back to the document.
The only ones that can redeem the shares.
It's not the individual shareholders.
You have to do it in 50,000, share buckets.
It has to be an authorized participant.
It's right there in the prospectus.
So why wouldn't destroy all those shares over time?
This price has been falling when the physical demand for silver is
nuts.
You would think that investors who want to get access to Silver,
Who are buying everything they can on the open market in terms of
bounces, along with the industrial sector, which need silver would
also be buying up SLB.
But I think what's happened is everybody's going after physical and
it's the short position.
It's the short position that's causing the price to fall, and it's
allowing its allowing, these authorized participants, to go and redeem
out all the silver, right?
All the silver is coming off.
And if you want to look at, you know what, we see here.
It's actually been positive over the last four weeks have been more.
Added their bill, a bit of a positive move in SLV but over time you
know it's really fallen and this positive move is Tiny.
If you look at it right there it's basically nothing.
So the overall trend is authorized participants taking metal out, that
should create some additional support for the share price.
If if share prices on SLV traded the same way, share prices trade for
other Market instruments, but we know it's different because you
can't, you know, you can't get access to the actual silver itself.
And I think what's happening,
As there's awareness in the market that SLV is not really the right
proxy for a lot of silver investors.
I think people are going to physical and I think that's what the
fiscal is coming out.
I think that's why they're redeeming shares, but I think the price is
being held down by the short position because you can call it, you
know, short interest you can call it you know, vultures coming after
us because they see a falling prices it's not like SOB's crater ain't
still at 1750, you know, it's probably just
Ingenuous at this many shares are being shorted on it, you know, at
this time at it's a, it's a ton.
And if you look at the off exchange short, volume ratio, 45%, I mean,
and it's also three days to cover.
So you need three days of all SLV trading to cover, these 59 million
shares.
That's a lot.
So this ratio of 3.11 days to cover shorts is really huge for any
Equity.
It does, you know, that's essentially what's happening.
What I'm telling you is happening is
They're liquidating, silver off, SLB the short interest is keeping the
price down to the market.
Doesn't notice so SLV.
Doesn't explode and cause passive investors say hey wait Silver's
doing something, I think what's happening has been intentionally
shorted.
So that authorized, participants can take the middle because I think
there's there.
We have a silver, shortage people need the metal, they're going to get
it wherever they can.
They know only the authorized participants by the way as of the has
been set up can redeem the baskets of shares for the metal.
So they redeem, they buy their shares.
The with the short position, keep the share price down and get them
cheap.
They recycle the shares by redeeming.
Now,
Them.
And they take this over.
Now, where is it?
Silver come from?
If you're you're a client and you buy 50,000 shares of elsevier group
of clients and about 50,000 shares and you want the silver, you go to
one of these authorized participants JP Morgan or, or any of the ones
that do it and you say, go buy me a bunch of shares and oh, we've got
up to 50,000 as a group or singly.
We want to redeem these authorized participant redeems.
It, that's how you get your silver.
So maybe they're going to come X and they're not getting delivery, the
of what they want because we've shown on our videos, how hard it is to
get it off of come.
Next, we have this four-year run.
In mind Supply deficit, the mind can't make enough so you could try to
go to a contract, the mine and definitely do it, but it you're not
everybody's gonna be able to do that, right?
But if the supply chain is short silver.
So what's happening is this short position on Silver is keeping that
price down on his.
They'll be another short on SLV while they redeem the the silver.
I'll okay.
But nobody really knows because it's counterintuitive, because
usually, when you destroy shares prices go up, that's the general
expectation.
Almost equities.
It's not happening on SLV and I think that's what's happening.
So there's a run on
be going.
That's why I did this video.
I think it's pretty obvious when you look at the data and that's just
another confirming Factor showing us that hey people want physical
silver.
So if you're following along with the derivative Market created price
for silver, it's 17, 18 bucks, whatever it is.
Right now I'm looking at the chart this morning, I don't pay too much
attention to that other than kind of have to follow the industry.
But I don't pay attention that from a supply demand perspective
because I had nothing to do with the physical market and you see what
happens when another equity in the space, which has a correlation to
the derivative.
It is being shorted, so that that shares can come off and then you see
the Futures being shorted and people stay in for delivering taking
this over off.
You can see there's a liquidation, there's liquidation somewhere
everywhere.
So it's basically videos put out basically to say there's a shortage
condition growing in silver.
So request net, silver squeeze, never stopped what I said.
In January, February, 20 21 was that people are going to run the
physical it to happen.
That prediction has come true.
And I think it's being run off everywhere and we're going to continue
to cover it, but that's how that works.
In a lot of people don't know that
Works on one to explain it, I wanted to show you if you're in the
market and you're interested in silver either.
You've already bought your considering it the fundamentals of the
physical supply.
And demand rate are extremely strong, and the derivative prices are
not reflecting it for reasons.
I've been covering that.
What it creates is a situation where if you want to do Arbitrage,
between where silver is now, where you think it's going to be in a
shortage condition, you the Arbitrage is go get your physical.
You don't want to get into the derivatives complex because they're
being held down with those will be drained what you want to do.
In physical.
And then if you believe that silver price is going to go up because we
aren't sure which ignition like I like I think the datasets everywhere
that we look at it then that, you know, that's a way that it could be
a positive investment