Quick blog today – yesterday near the end of the day I figured they were going to smash silver to get it below the $27 options. I heard Chris on Arcadia discuss it and felt a downside short term risk below $27 was possible, so I sold some AG options and will buy back items at a higher strike price tomorrow before close. If you look at December silver deliveries, you can see the price smashes before it, then the first day of delivery, the price shoots up and all through December price rises as it appears they were trying to source metal on the spot market.
Since my interview on Palisades Radio, I have fielded a few questions about Basel 3 as it relates to silver. I know Andrew Maguire is to do a wallstreetsilver AMA pretty soon, and I wanted to see if these questions could find their way to the WSS team and those asking questions.
- How does BASEL 3 relate to silver, particularly? I have heard Andrew talking about gold and silver “squaring the books” by June 28th or so. Basel 3 doesn’t specifically talk about silver. I have heard about the NSFR ratio of 85%, and almost all of this discussion is gold. I did look up on the BIS site how “all balance sheet items” are affected. A person questioning me about this said he didn’t feel silver would show up on the balance sheet. I did. That being said, can Andrew speak specifically how this affects silver?
- Date – I have heard Andrew discuss June 28th or so of 2021 and March they begin the process to unwind. Rob Kientz at GoldSilverPros reported that this was delayed. On the BIS site, it shows everything delayed until 2023 – dated from March 2020. Can Andrew speak specifically as to where he gets the June 28th 2021 date and if this is affected by these delays that appear to be on the BIS site? Here is the link provided to me by a reader in the industry who also has friends closer to this. Are there sub-components to this due by June 28th that have not been deferred?
The above information could be particularly useful to silver investors – and as I told you I report what I find, and update my information when I get better information, I figured I can do a service to everyone and send out the question and see if it lands with Andrew or someone close to this. If any of you have definitive, first-hand account of how this may affect your direct job and you have knowledge of this, please reach out to me at firstname.lastname@example.org.