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 nathanfisher47@gmail.com.
Renaissancemen.org 
February 26, 2021 at 10:25 am
Hey – Andrew Maguire just addressed this in a latest video on Kinesis Money’s YouTube channel https://www.youtube.com/watch?v=AleXHAThTbg
TLDR – There are a wide range of Basel 3 that need to be implemented before the actual Jan 2022 deadline (when the full Base 3 requirements come into force) and some before the 28th June 2021.The EU, Switzerland and the US have adopted and will enforce the NSFR standard . The UK has been granted an exception until Jan 1st 2022, but Andrew believes they will have to be compliant anyway as everyone else is doing it and also because they have the London Gold fix which also has to be inline with how the Comex futures market otherwise there will be arbitrate opportunities. Andrew thinks there will be a Gold/Silver revaluation upwards before the end of Q2-21 and then 2 more times leading up to Jan 2022.
One question I have is if you the big banks that are short don’t have the physical gold/silver to back their position (to meet NSFR reqs) can you use cash/bonds or equivalent instead?
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February 26, 2021 at 1:47 pm
I saw the video, and he specifically stated this is the NSFR component which has a deadline of June 28th. He mentioned that in order to be compliant, banks will need to start in March to “square the books”. He does NOT think banks, on their own books, are naked short. They have covered shorts. At issue, is customers of these banks make have naked short positions. He mentioned some banks may completely exit the industry like Scotia. He also mentioned in another video that the tier 1 banks have gold priced in at $2500 and this could lead to a $40 silver price. So…this is just a patience game. I’m locked, loaded, and just waiting. Everyone sees bitcoin go parabolic and assume the same thing is to happen in silver. It may, at some point. MY belief is the last week of March will be fireworks. I could be wrong. The squeeze is working, you just don’t see it at the paper price, today. But how can you be so tight on supply everywhere and the paper price goes down $2? People who then buy this paper price may actually want delivery, and those who sold have zero hope of delivering. And this is where the ultimate pop happens. It’s not the “default and carnage” that most will think, it will simply be contracts standing for delivery that have to settle in paper. When THIS happens, confidence in the system collapses and this is a TRUE shortage that would essentially make price go parabolic. One thing to keep in mind – price has hit $50 twice without the COMEX “breaking”. Everyone is so impatient, and they cannot take these vicious moves up and down with silver. To those who have a weak composition for this, this is not the sector you want to be investing in. Those who can watch with some popcorn and chuckle at a $2 price move down whilst understanding the major principles involved are more suited to reap the rewards of patience through the turmoil.
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