 Okay, it is Sunday night. It's coming up to 9 p.m. London time I'm actually joined by Tim one of our senior traders over in Dublin. How's it going Tim? Really good Yeah, I mean so the the amplifier live kind of discord room that we have been pretty busy the last couple of hours There's been a lot of conversation about SLV silver And the kind of Wall Street Bets continuation and and what could be next and so on so Tim, why don't you just get us up to speed? What's the chat here at the moment? Sure. Well, this really started last sunday last saturday sunday I'm a member of the Wall Street best board on reddit Just really for skull game purposes and information gathering purposes if anything so They were they were sending out to pick game stuff and as we saw that come true through wednesday or monday all the way through Thursday and then really a lot of that shut down the fact happening on robin hood and it's now sort of sec investigation territory however In the mix of conversation on sunday saturday sunday last week on the boards there was a sort of An op-ed put out by the leader of the swarm if you like who is called the chairman and he had this sort of op-ed about Shorting silver SLV Or via by using SLV, which is the black rock eyeshares ETF silver tracker so It was a pretty convincing argument and it's been picked up by a lot of people as the world focused in on Game stop on wall street bets really from what happened to get to game stop an amc from kind of Monday Tuesday Wednesday Thursday And so people really are picking up on what they're talking about but they've also stumbled across this op-ed on SLV now I did talk about this monday morning and we did a little video and and Eddie recorded something on game stop, but i've been tracking this SLV and for me as Sort of someone who's tracking what these guys are up to I thought okay, it's one thing to move an equity You know like game stop or amc and there's a lot of games being played on the book there You know, I shared a video in our room Earlier on today where kramer From gmbc is talking about his good old days managing a hedge fund and All of the sort of games they used to play with driving Driving equity prices up fading them down re buying them and putting out news and fake news And it's a pretty eye-opening video. So do try and check that out on our on our discord if you can But really coming back to the point of why we're talking now is that Thursday last week. I thought okay. It's one thing to move equities It's another thing to move a global commodity market And I thought you know what? I like I like what these guys are doing I think they're pretty crazy Michael burry who's who's famous from the big short I famously shorted the mortgage market He's actually been in that trade with wilfrey bets As of I think middle of last year. So he was buying about 17 million dollars worth of game stock stock around two dollars And so you can kind of imagine the gains he's on but there are Sophisticated traders in this group and they do know what they're doing. So they're not to be discounted. Anyway came Thursday And on the red boards, they were solely focused on managing the game stock position by not liquidating Ie not putting any of their shares out for loan to short or nothing anything like that But then they switch focus to slv and the chairman started juicing the war cry right And you know what these guys response to it now there was a there was a quick calculation done by some people I follow on on on twitter And they calculated that the approximate Buying power of the swarm will call them now. We'll see bets is about 1.4 billion Um, so these guys are not to be trifled with so Sure enough Thursday open on the metals exchanges silver futures opened up Just a little tepid to start with but then slv started getting hit. Now the important thing to realize Is that an etf like slv? It's not it's it's it's net asset value is derived by The the futures price and the spot price of silver. So like with the oil etf Uh, I think it's us. Oh They uh, they're net asset value i.e. the price of us oil is directly a Mathematically correlated to the price of the spot price of a barrel of oil And a mixture of the front month future and the second front month future i.e Basically the first two to three months of all the prices of oil available and with slv Their net asset value is pegged to very something very similar in terms of the silver market Why is this important? It's important because once wall street bets started to lift i.e. buy a lot of slv Well slv asset managers and portfolio managers had to then To offset their risk take positions in the actual futures market for silver the si contract And this sort of sort of started this self Fulfilling prophecy in a way right, you know So they're they're buying etf and the etf have to offset offset their risk And commit to their new clients by buying more futures and then more futures rising the etf rises and so In a way this is important to remember because we saw the inverse of this happen In january 2018 when we had an incident called volmageddon where whereby the the vix I won't get too into this but essentially the vix went so high in in february jan feb 2018 That the portfolio managers who were hedged on their long equities positions were short in vix And that the pain on their short side and the vix trade got so High that they contractually had a puke point Of 80% volatility in their in their short side portfolio that they had to stop They had to stop selling vix futures. So what happens when you take the roof off something? Well, it it bounces high higher vix equities go down So what we're seeing essentially is the inverse of this now happening with the slv etf and as a consequence With this trade has now gotten a lot of air since last sunday monday coming into friday We've seen record inflows into the slv etf So huge amounts of of retail and institutional money stepping in there and Essentially, that is having a knock-on effect. So something I was looking forward to a peaceful sunday, but quickly got sucked into Some crypto stuff the stellar coin that which i'm an owner of so it was like opened about 10% up So my friends who I tried some crypto with were on to me Then I saw people Nicola juke who I follow on twitter who's who's a fantastic trader She was monitoring that the televieve exchange, which is open on saturdays and sundays their goals Etf tracker was up five percent. I checked back on it about lunchtime. It was up six and a half percent So, you know, uh, so we're looking forward to A pretty wild week in the metals complex Yeah, so that there's there's quite a few articles as you said it seems like this is building up a bit of traction And uh bloomberg reporting silver coin sites Have grinded to a halt and zero hedge Yeah, obviously those in the market will know zero hedge very well They're obviously coming into their element with these types of narratives at the moment They were talking about the same sort of thing Um, so what's the deal on the physical side? How does that play into this? Sure. Yeah, so I mean one of the One of the things about wall street bets on the swarm is that they they are very specific about Execution instructions as in okay, how do we get into this trade? Right and and and there are some guys in there who say oh, we'll play the options. We'll buy the outright. We'll buy the physical You know, that's the same with a lot of these trades. They they talk about well I will I am I better off on options? I'm a better off I'm just buying outright. Do we need to hedge this? And what we're seeing Out of the chairman was he was just like, you know what? We want to accumulate so much Um, that there is none of it. There are there is no available stock To to short to borrow to short because if you want a short and equity Or or a futures contract Mechanically in the background you you are actually borrowing that contract from someone who is long or an owner of the underlying asset to then and try and hold it to until the premium goes out of that price so They're buying a load of bullion. So we've seen just before I came on this chat And the we had walmarts Sight down they sell silver A lot of these like literally, you know, buy coins Buy like silver crew grounds stuff like that I know like on the elite trader team for best trade of the month They win a silver crew grand, which It's about 26 26 quid. Well, I think that's going to be worth a little bit more by the end of the week. So, um I don't know. I don't know if my prize gimme is going to continue a crew grand but the what the main point is is that at Everyone is buying etx. I called my aunt earlier on who does trade She's traded for 20 years 30 years And I said, you know, are you looking at silver? And she's like, oh, I've been so long silver for a couple of months now And I just re-bought and I was like, all right. Well, I'm late in this one You know, so it's it's a well-aired trade right now So I wouldn't be surprised to see a little bit coming off on the open Maybe a gap open gap fill on a pullback and maybe that'll be a dip and drive Um, you know, I have orders in a 25 as well myself Um full disclosure. I am long a minor That you all know about So it's it's going to be wild. It's going to be wild because these guys if there is no open float to short They're there for the price will Literally just have to drift drift up until it finds an offer and um bloomberg, you know, I mean I'm bloomberg at the moment. They just released an article saying from one of one of the largest traders of silver And he's just saying there are no offers in the market i.e. There are no sellers So therefore there's nothing to stop price as it goes right. So yeah, I've got got the article here as a device VP of zen zania group in chicago Yeah, quote now we're seeing nothing no single offer, which is scary It's what he said earlier So mechanically what happens in a market if there are no if there is If there's if there's very little to no liquidity If there's zero liquidity the market actually cannot move up If there is light liquidity the market will move up to where that liquidity is that could be a jump of A basis points five basis points 50 basis points and this is when you see these really fast moves because effectively the mechanics and the order dynamics going on in the exchange are That price is discovering essentially higher Until it wipes until until everyone's happy that they're long And so it's going to be interesting to see one more point that want to mention just before we wrap up on this is that the ratio of available physical silver for delivery Versus the number of contracts traded Is 250 to 1 So for every one unit of silver physically available to deliver There are 250 contracts traded on that one contract available So something's going to give and something's going to stop this week. Yeah, I mean, I'm just just to finish as well Your your take on I'm just watching our own Private discord room and they're talking about there's a lot of chat on twitter pointing out that the silver squeeze Is not being mentioned on reddit wall street bets, but rather it could be Instigated by hedge funds basically to lure the hordes away from gme stock any thoughts on that I think that makes a lot of sense. Absolutely, but this is sort of A situation now where it has become a self-refill and Lie if you like or you know if if this is interference being run by hedge funds Well, you know what they've got everyone's attention and they've got the liquidity the market has moved liquidity into this ETF I don't think Well, look, let's see how it opens. Let's see how it opens. I don't think silver is really a bad buy around 25 Anywhere from 22 to 25 dollars? I don't think it's a bad buy on you know on the futures market SLV trading 24 99 what I'm looking at right now um Actually, it's trading. Sorry right now pre market is trading 27 So it's up 1.09 pre market right now actually from nicey. So Whether it's whether it's wall street bets driving it or whether it's hedge funds We're up 1.1 percent. Yeah pre market Cool. Well, look we'll end it there. I know you've got a couple of hours ahead of you now And I'll catch you later on See bright nerdy. Thanks very much Tim Any questions any comments let us know below. Thanks very much. Thanks folks