>>23324884 lb
>the silver prices were faked with paper silver
AI Basel III and Silver
Basel III and Silver:
Impact on Banks:
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Basel III requires banks to hold more capital against certain assets, including unallocated gold and silver (paper claims on the metal).This may force banks to reduce their unallocated positions, potentially leading to increased demand for physical silver.
Potential for Short Squeeze:
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Some analysts believe that Basel III could trigger a short squeeze in the silver market. This is because banks with short positions in silver may be forced to cover those positions as they adjust to the new regulations, potentially driving up the price.
Silver as a "Coiled Spring":
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Some analysts suggest that the silver market is currently a "coiled spring," ready to be released by Basel III. The increased demand for physical metal, combined with potential short covering, could lead to a significant price increase.
Dual Role of Silver:
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Silver's dual role as a precious metal and an industrial metal is crucial. As Basel III pushes up the price of gold, silver may become a more attractive and affordable alternative for investors seeking safe-haven assets. Additionally, silver's industrial applications, particularly in solar energy, could see increased demand, further driving up the price.
Key Considerations:
Paper vs. Physical:
Basel III differentiates between allocated (physical) and unallocated (paper) gold and silver. Physical holdings are considered a low-risk asset, while unallocated positions are viewed as riskier.
COMEX:
The Chicago Mercantile Exchange (COMEX) is a major futures market for silver. Some analysts believe that Basel III could disrupt the COMEX market and potentially lead to a cash settlement rather than physical delivery.
Market Volatility:
The transition to Basel III could introduce volatility to the silver market as banks adjust their positions and potentially close out short positions.
In essence, Basel III is seen by some as a catalyst for a potential bull market in silver. By increasing the demand for physical metal and potentially triggering a short squeeze, the new regulations could lead to a significant increase in silver prices.