Grown-ups discuss silver habbenings
Physical Challenge
The Reddit retail crowd has once again made its presence felt via en masse arrival into the silver pit: Futures prices jumped as high as 13% to $30 an ounce this morning, the highest since February 2013. Activity could be described as frenzied, as trading volumes in the iShares Silver Trust ETF were nearly double last week’s peak turnover and more than seven times its one-year average.
That influx of new silver aficionados is taking a serious toll on the supply picture. Zerohedge reports this afternoon that the premium for physical silver skyrocketed to $14 an ounce today. For context, that differential normally sits near $2 to $4 an ounce, while the previous high-water mark for physical silver premiums over the past five years was less than $6 an ounce back in March 2020.
“Now we’re seeing nothing, no single offer, which is scary,” Peter Thomas, senior vice president at Zaner Group, told Bloomberg yesterday. “Whatever we sell, people are holding it. There’s no inflow of metal at all.”
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