Kitco News, Released on 2/2/21
The silver price dropped 10% on Tuesday as the CME raised margin requirements for silver contracts.
Peter Hug, global trading director of Kitco Metals, said that the silver squeeze attempt has now “backfired” as bullion inventories have run dry as a result, and with premiums up and few physical products to sell, it is now even more difficult for retail investors to push the price up.
Peter Hug has been involved in precious metals since 1974. He began gaining first-hand investment industry experience at Deak-Perera. He served as SVP at Guardian Trust Company, which became one of the largest international trading houses for precious metals. He developed the first precious metals certificate program and the first margin trading accounts for metals on the cash market. Peter has acquired extensive experience in the wholesale markets and international asset diversification. A frequent speaker at precious metals conferences and in the financial media, he is one of the handful of experts who have succeeded through multiple bull and bear cycles on the strength and skills honed during the dramatic fluctuations of the 1980s. As the Director of Kitco’s Precious Metals Division, Peter develops newer and better investment options for Kitco customers.
Why #SilverSqueeze ‘backfired’; price is now collapsing – Peter Hug added by Herman James on
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So he’s saying there’s huge demand so price won’t go up? Total BS! If there’s no supply then prices should go up according to Economics 101.
Perhaps what he means is that because the premiums on silver coins/bars have gone up so high, he believes that could affect demand since many people don’t want to pay such a high percentage premium over the spot price of silver? There was a massive amount of demand for physical silver over the weekend but he is implying that it will flame out and not last and demand will now actually collapse?
In other words, the premium on silver has risen so much that it will make people think twice about buying physical metal since it’s now so expensive.