Can Blackrock's Bitcoin ETF Shunt Sufficient Numbers Of Silver Investors Out Of Physical Silver To Stop The Building London Short Squeeze?
Here, Have Some Special Code
“I would describe cryptocurrencies as a limited supply of nothing. …
… There is no intrinsic value to any of the cryptocurrencies except that there is a limited amount.
Once the exuberance wears off, or liquidity dries up, they will go to zero. I wouldn’t recommend anyone invest in cryptocurrencies.”
John Paulson of Paulson Funds
The observance that the entire board of directors of Blackrock Inc. and CEO Larry Fink visited Keir Starmer London on November 21, 2024 continues to resonate given the strange appearance of such a mass meeting.
This recent meeting of Fink & Starmer following their prior meeting on September 25, 2024 starts to give the appearance that they may be meeting to address a matter of some urgency.
Given the fact that there is an estimated 4.2 billion (B) to 6.4B oz. of silver sold short into the London cash/spot silver market it should be no surprise that we should start to see parties who may hold a material portion of such a large short visiting ground zero. These spot/cash silver contracts in London allow for immediate delivery on demand so things can change very, very quickly during a time of silver shortage. Like now.
The question remains that, if Blackrock is short silver, as to exactly how large a portion of the ~5B oz. London cash silver position is held by Blackrock that manages its SLV silver ETF - the world’s largest silver ETF.
The global silver supply deficit, pressuring those who have promised delivery of silver bars on demand, is in its sixth year running and is increasing with the 2024 global silver deficit estimated at 265 million (M) oz in an annual silver market of 1,219M oz.
One strategy to alleviate pressure on silver demand would be to start other investment vehicles that shunt investor capital away from finite physical safe haven assets outside of the financial system, such as silver, into digital vehicles within the financial system whose value can be inflated without limit. Something from nothing.
Well, in January 2024 Blackrock floated its iShares Bitcoin Trust ETF (‘IBIT’) that now already holds more than 500,000 bitcoin (BTC) of the total 19.9M bitcoin in existence. The current BTC ‘mining’ rate is 325,000 per year so the torrid pace of BTC acquisition by the Blackrock ETF is notable and likely material.
To be sure, Blackrock is generating headlines and interest from retail investors:
John Paulson’s observations have not stopped Larry from creating this virtual repository of apparent wealth however he may be in real need of finding methods of alleviating pressure on the silver shorts, some of whom may be in his own building, who have dug a hole of which they can’t get out.
With $11.5T of assets under management, Blackrock swings a big bat. However, even Blackrock’s big bat can’t create physical silver from nothing. And therein lies the root of the problem.
Today, BTC stands at $96,000 up from $44,000 in February 2024. While some investors may be happy to exchange their currency deposits with banking system risk for digital investments backed by ETF assets with no intrinsic value exposed to banking and financial system risk similar to Treasury ETFs, there is a welter of demand coming for physical gold and silver. Imagine the urgency of the tidal wave scene in Interstellar.
Much of the global silver demand is from industrial applications unaffected by ETF investment promotions.
As Joe Sixpack retail investors increasingly start to awaken to having been fleeced over the past decades by central banks and the financial industry, there is a demand mania coming to the physical gold and silver markets that cannot be met with virtual instruments.
Best regards,
David Jensen
This Substack and its contents are for discussion purposes only and are not investment advice. Do your own due diligence.
As Rick Rule always points out, the best investments are the ones that have staying power but are currently hated. Silver is the commodity most feared and hated above all others by the government, thanks to its dual role as both indispensable commodity and money. No silver, no electronics, no CBDC’s, no weapons of war, no electronic surveillance nooses for the people and no way for the parasite class to complete their dreams of impoverishment and enslavement of the planet. And that’s why the government wants us to hate silver, so THEY can hoard it all for their nefarious purposes against us, and cheaply. On the other hand, if we the people have silver in our hands, we can transact freely amongst ourselves with no government oversight or control. Oh, the horror!
Generally, when the government hates an asset, the people follow suit in their investing choices. That’s largely because the government manipulates policy to make the asset financially unattractive. Negativity begets negativity. But the people have, fortunately, started waking up, and the industrial use of silver has done nothing but expand in size and form. Silver is rapidly headed towards becoming a commercially extinct commodity. That alone should be sending its price skyrocketing, but its extremely critical nature means governments absolutely, positively CANNOT have the plebes taking notice, acquiring or keeping any in their own hands! Every diversion trick must therefore be pulled out to discourage investment interest by the “little people”.
Therefore, you might consider cheap silver a once-in-history type of gift. Ignore the price fluctuations “a dollar here, a dollar there”. Compared to its true, unmanipulated value, silver is the least expensive commodity on the planet, and has been for about 44 years, now. The appearance of the Ratfink in London, in context of at least two major (silver devouring) wars taking place, the drive to electrify everything, rapidly rising global totalitarianism, increasing deficits in the above-ground silver stockpile, China pre-emptying the West by sucking down unrefined silver dorre from South America, the wealthy getting nervous about the banking system and the public waking up to silver as savings (Costco and Walmart, anyone?), does seem to suggest that limits are being reached and something needs to be done about that! So every trick imaginable - and some we can’t even dream
of - will be pulled to stop the threat to the banks whose job it is to keep the silver price suppressed.
Silver may well be the global tyrants’ Death Star’s waste port. If we attack (purchase) en masse, don’t get distracted and don’t let up, we could potentially blow the machine up and turn the tables. I think that’s why Trump is now touting Bitcon instead of gold. That plus the fact that, via Tether, Bitcon is a back door way to fund Treasuries and keep Uncle Sam’s borrowing spree going just a bit longer (see Rafi Farber’s End Game Investor for more details.) So if you wish to be part of the resistance, buy silver. Now! And as much as possible. And have courage, the enemy will fight us literally to the death over this and they ARE powerful! But more and more evidence suggests they are worried, they may be cracking, and continued attack might just push them over the edge.
When fighting the long game, simple acts conducted repeatedly are often the most meaningful. Buying whatever silver you can afford is an incredibly simple act. But over time that will hit our enemies where it hurts. And it looks like the time has come when they’re feeling the first hints of real pain. So have courage, keep buying, and hold on to it no matter what! Nobody said this would be easy. But if we all pitch in together,don’t flinch, and commit to standing up through the ugly that’s coming one way or the other, we CAN secure a much better future for ourselves and future generations.
If Larry Fink is giving us a clue, then the time is now, and our swords and shields are silver ones. Who’s up for the fight?
The US gubmint doing a 180 on crypto should tell you all you need to know...
Keep stacking!