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Silver Surges Above $50, Massive Short Squeeze Leads to Near Complete Market Liquidity Drought
Summary: According to reports from sources, the current price of silver has surged above $50 per ounce, causing chaos in the London silver market as a massive short squeeze has led to near complete market liquidity drought. Traders point out that it is difficult to find physical silver for any short positions, forcing them to pay ...
According to reports from sources, the current price of silver has surged above $50 per ounce, causing chaos in the London silver market as a massive short squeeze has led to near complete market liquidity drought.
Traders point out that it is difficult to find physical silver for any short positions, forcing them to pay high borrowing costs to roll over positions. Some traders have even booked cargo space on transatlantic flights to transport large silver bars, a costly method usually reserved for more valuable gold.
Anant Jatia, Chief Investment Officer of commodity hedge fund Greenland Investment Management, stated that he has never seen a market situation like this before, with silver currently lacking available liquidity. This unprecedented situation has caused the premium of the London silver market over the New York market to rise from the usual around 3 cents to over 20 cents. Robert Gottlieb, Managing Director at JPMorgan, noted that banks are now unwilling to quote each other, leading to significant spreads, which is also a result of the liquidity shortage.
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Link: Silver Surges Above $50, Massive Short Squeeze Leads to Near Complete Market Liquidity Drought [Copy]
