#Silver could be on the cusp of a parabolic move higher. Recall that prices are down ~2/3's from the peak more than 40 years ago while many commodities have been multi-baggers in that period. (1/9)
Average primary silver miner grades have essentially fallen in half over the past 20 years, and prices are now nonsensically below all-in sustaining mining costs. (2/9)
Meanwhile, #solar and #India have exploded as tremendous sources of demand while supply is largely stagnant. The @SilverInstitute estimates solar will comprise 11.5% of demand this year, up 12% YoY, but this makes no sense. (3/9)
China comprises ~40% of global solar panel deployments (up ~100% YoY), the EU is scrambling to deploy panels on every structure, and the US just passed a massive solar friendly climate bill. Solar alone could more than double @SilverInstitute's 71.5mn oz deficit projection. (4/9)
Meanwhile, COMEX and LBMA silver inventory has collapsed this year, and there is less than $1 billion of registered stocks remaining in the COMEX vaults. A small hedge fund could incite a Hunt Brothers-like squeeze. (5/9)
And the best part is that somehow, in spite of the most bullish supply/demand matrix in the history of the silver market, positioning is max bearish. (6/9)
As of last week, speculators in silver were net short a whopping ~$1.3 billion of COMEX futures! (7/9)
Meanwhile, borrow costs on the $SLV have surged from an average of ~.2% - .3% to ~7% last week, as short interest is now >50 million shares, up ~4X from 2 years ago. (8/9)
Silver is the world's best electrification metal, and in the midst of an unprecedented global energy crisis, there will soon be a stampede by Managed Money to load up. #silversqueeze (9/9)
• • •
Missing some Tweet in this thread? You can try to
force a refresh
