Arcadia Economics, Released on 1/3/25
Back in 2021, the silver market had an event that came to be known as the Silver Squeeze. Which led to a brief spike in the price, and a surge in investment demand, that 2 months later would lead the LBMA to say ‘had demand in iShares continued at the frenetic rate of late-January/early February it would only have been a matter of weeks before London’s existing stock was used up.” Yet the lesser known story is what was happening behind the scenes with the Sprott PSLV trust, which was clearing out the existing silver inventories in multiple cities. In this clip, RIck Rule, who had a unique access to the silver market due to his role with the PSLV trust, talks about how close the market came to breaking, and whether he expects it to happen again. If you’re a silver investor, you’ll want to have seen this clip!
Rick Rule, founder and chairman of Sprott Global Resource Investments Ltd., began his career in the securities business in 1974. He is a leading American retail broker specializing in mining, energy, water utilities, forest products and agriculture. His company has built a national reputation on taking advantage of global opportunities in the oil and gas, mining, alternative energy, agriculture, forestry and water industries. He is also the co-founder of Battle Bank and founder of Rule Investment Media.
Chris Marcus worked 2 years at bond rating agency Moody’s, has an MBA from Wharton, and also worked 7 years as an equity options trader for Susquehanna International Group on the American and New York Stock Exchanges, before leaving in 2012 to create Arcadia Economics. In addition to publishing Arcadia’s Monthly Market Snapshot, he also currently writes market commentary for gold and silver dealer Miles Franklin, Investing.com, and several others.
Rick Rule: How Close Silver Squeeze Came To Breaking The Market added by Herman James on
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Whatever. The silver marked was almost broken in 2021. But today, 4 years later, silver is under $30 per ounce.
And in March 2021, when silver was selling for $25.43 per ounce, and silver bulls were screaming that silver was going to $100 an ounce, the premiums on Silver Eagles were $10.99 per coin! How did that work out for those who bought big boxes then?
How many times since then have we heard that the COMEX was being drained and was on the point of being unable to deliver? It wasn’t that long ago — one to two years ago — when we were told that it was almost impossible to obtain junk silver and the premiums on junk silver went sky high. But that isn’t the case today, is it?
Silver has become the perennial “buying opportunity” because the endless price suppression never fails to drive the price down.
If you happened to buy silver when the price was knocked down, then you may have made a profit on it.
But if you happened to buy in when the price was in the $30 range and/or when the premiums on silver coins were high, then today you may be forced to sell at a loss should you be in a position where you have to raise money for medical or family bills.
Caveat emptor.