In this discussion, guest Andy Schectman, a veteran precious metals dealer and co-founder of Miles Franklin, dives into the recent surge in silver prices. He explains the dynamics of backwardation and the alarming physical shortages driving the market. Andy explores risks with paper claims versus physical metals and warns of a potential run on physical silver. He also highlights the growing demand from both institutional buyers and anxious retail investors, while sharing practical advice on how to navigate this volatile landscape.
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insights INSIGHT
Paper Promises Breaking In Silver
Andy Schectman says current silver market shows unprecedented backwardation that signals extreme delivery stress and depleted inventories.
He argues this exposes frailty of paper promises and is decisively bullish for physical precious metals.
insights INSIGHT
Rehypothecation Creates Systemic Mismatch
Andy explains rehypothecation created multiple paper claims on the same physical silver and trading volume far exceeds float in London.
He highlights soaring lease rates and daily contract volumes showing a systemic mismatch between claims and deliverable metal.
insights INSIGHT
London Is Epicenter Of Delivery Stress
Delivery stress is strongest in London while COMEX sees rising deliveries, signaling buyers demanding immediate metal rather than rolling contracts.
Andy says standing for delivery and high delivery numbers indicate urgent physical demand overpowering paper markets.
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