All posts by Silver Report

The Largest Energy Coop In Texas Files For Bankruptcy As Liquidity Crisis Spreads

The Largest Energy Coop In Texas Files For Bankruptcy As Liquidity Crisis Spreads

By Zerohedge

The Arctic blast and severe winter storms that pounded Texas weeks ago have claimed another victim as the credit crisis widens. Texas’s largest power cooperative filed for bankruptcy protection in federal court in Houston Monday, citing a $1.8 billion bill from the state’s grid operator, ERCOT, according to Reuters

The Largest Energy Coop In Texas Files For Bankruptcy

According to court documents, Brazos Electric Power Cooperative, the largest generation and transmission co-op in the Lone Star State, filed for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas. The company said it could not pay a $1.8 billion bill from ERCOT stemming from a severe cold snap last month.

Brazos and other utility companies who have committed to providing power to the grid were unable to during the mid-February crisis that left up to 4 million customers without power. This meant utilities had to purchase replacement power at extremely high rates, and some of these extra costs were passed on to customers. 

Clifton Karnei, executive vice president of Brazos, said in the filing that the magnitude of the charges “could not have been reasonably anticipated or modeled” and surpassed Brazo’s highest liquidity levels in years. On Feb. 25, Brazos told ERCOT that would it wouldn’t be able to pay what was owed. Leaving the company with “no choice” but to file for bankruptcy. Brazos has assets and liabilities between $1 billion and $10 billion.

“Brazos Electric suddenly finds itself caught in a liquidity trap that it cannot solve with its current balance sheet,” Karnei said in the filing. 

Liquidity Crisis

Liquidity Crisis Spreads

Readers may recall, we were one of the first to uncover the “mind-blowing” power bills some Texans were slapped with. Some people, who opted into variable power bills, were charged as much as $17k for power. We even did that math and said it would cost $900 to charge a Tesla in Texas during the energy crisis. 

“The municipal power sector is in a real crisis,” Maulin Patani, a Volt Electricity Provider LP founder, an independent power marketer who is not affiliated with Brazos, told Reuters. He said ERCOT should suspend the service charges to stop the waterfall of defaults. 

Fitch Ratings warned last week about downgrades for all Texas municipal power firms on ERCOT’s grid. The debt rating company said costs from the storm “could exceed the liquidity immediately available to these issuers.” 

The first causality of the Texas energy crisis was Just Energy, which saw shares last week crash by more than 20% after the company released a statement about steep losses incurred last month, warning of doubts about remaining a ‘going concern’ (translation: it may not survive).

ERCOT recently suggested some market participants have not posted collateral to cover some of the bills as defaults begin. 

Kenan Ogelman, ERCOT’s vice-president of commercial operations, said market participants who buy power from them have to post collateral as a down payment on energy purchases. He said some entities have “failed to deliver it.”

“Defaults are possible, and some have already happened,” Ogelman warned

Read https://silverreportuncut.com/a-primer-on-commodity-supercycles-inflation-where-it-hurts

Dozens of other energy providers face massive charges for electricity during February’s freak Arctic blast in Texas. The default domino has begun… 

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A Primer On Commodity Supercycles, Inflation Where It Hurts

A Primer On Commodity Supercycles, Inflation Where It Hurts

Authored by Mark Burton, Thomas Biesheuvel, and Alex Longley via Fortune.com,

A surge in commodity prices has Wall Street banks gearing up for the arrival of what may be a new – an extended period during which demand drives prices well above their long-run trend. A major impetus is the massive stimulus spending by governments as they juice up their economies following pandemic lockdowns. The evidence includes surging copper and agricultural prices and oil back at pre-COVID-19 levels.

One theory is that this could be just the start of a years-long rally in appetite for raw materials across the board, but the reality is more complicated.

Commodity Supercycles

1. What are commodity supercycles?

A sustained spell of abnormally strong demand growth that producers struggle to match, sparking a rally in prices that can last years or in some cases a decade or more. For some analysts, the current rally is rekindling memories of the supercycle seen during China’s rise to economic heavyweight status beginning in the early 2000s. Commodities have experienced three other comparable cycles since the start of the 20th century. U.S. industrialization sparked the first in the early 1900s, global rearmament fueled another in the 1930s and the reindustrialization and reconstruction of Europe and Japan following the Second World War drove a third during the 1950s and 1960s.

2. What did the last one look like?

From around 2002, China entered a phase of roaring economic growth, fueled by a rollout of modern infrastructure and cities on an unprecedented scale. Suppliers struggled to fulfill surging demand for natural resources. In commodities, there’s often a time lag to get the product where it’s wanted since adding capacity, such as opening a new mine, doesn’t happen overnight. For more than a decade, materials including iron ore were in tight supply. Copper, priced below $2,000 a ton for much of the 1990s, broke $10,000 and oil jumped from $20 a barrel to $140.

Read https://silverreportuncut.com/im-not-a-republican-i-believe-in-freedom-for-every-man-i-oppose-the-great-reset-because-it-violates-rule-1

3. Who says this is another supercycle?

Among the bulls are analysts at JPMorgan Chase & Co. and Goldman Sachs Group Inc. The commodities rally will be a story of a “roaring 20s” post-pandemic economic recovery as well as ultra-loose monetary and fiscal policies, according to JPMorgan. Commodities may also jump as an unintended consequence of the fight against climate change, which threatens to constrain oil supplies while boosting demand for metals needed to build renewable energy infrastructure and manufacture batteries and electric vehicles, it said. Those include cobalt and lithium. Furthermore, commodities are typically viewed as a hedge against inflation, which has become more of a concern among investors.Play Video

4. Why might this not be one?

Longer-term trends point to a cooling down for some materials. For example, the energy transition that heralds a bright new age for green metals such as copper would be built on the decline of oil. Even producers of iron ore, the biggest market of mined commodities, expect prices to weaken over time as Chinese demand starts to decline and new supply comes online. It’s an even bleaker outlook for coal, with producers looking to exit the market altogether as the world switches away from the heavy-polluting fuel. Iron ore, coal and oil were the chief beneficiaries of China’s industrial expansion. Those markets dwarf copper in scale.

5. What’s been happening with oil?

Prices collapsed in 2020, even turning negative at one point, but have recovered as demand rebounded more strongly than many had expected. Early in 2021, the Organization of the Petroleum Exporting Countries and its allies were holding back crude equivalent to about 10% of current global supply. Market fundamentals have shifted, especially in the U.S. with the emergence of shale oil. Haunting traditional producers is the prospect that a prolonged period of high prices would trigger a new flood of supply beyond OPEC’s control. Even so, some oil bulls aren’t ruling out the eventual return of prices above $100 a barrel.

6. Which other commodities are rising?

Copper was on a tear in early 2021 thanks to rapidly tightening physical markets as governments plow cash into electric-vehicle infrastructure and renewables. Goldman Sachs, BlackRock Inc., Citigroup Inc. and Bank of America Corp. saw the metal moving toward all-time highs. While agricultural commodities have their own particular dynamics, soybeans and corn have rallied to multiyear highs, driven by relentless buying from China as it rebuilds its hog herd following a devastating pig disease. Agricultural prices are more dependent on global economic and population growth, rather than the decarbonization trend underpinning excitement in metal

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I’m Not A Republican, I Believe In Freedom For Every Man, I Oppose The Great Reset Because It Violates Rule #1

I’m Not A Republican, I Believe In Freedom For Every Man, I Oppose The Great Reset Because It Violates Rule #1

Boycott The Great Reset

In case anyone was confused I do not consider myself a Republican, in fact, I have grown to disdain the term. I believe in freedom for every man and this is something evidenced to every man naturally. Someone called me an anarcho-capitalist once and I smiled inside and thought that’s a good name for it.

The Great Reset

#wethepeople in charge of the money,

#wethepeople in charge of our own businesses

#wethethepeople in charge of the government!

Basic American foundational principles. Men are not made to be slaves and the people claiming to fight the remnants of slavery are seeking to enslave the world and are attacking people for their races and sex every day, if you turn on the TV there is a vicious barrage of racist brainwashing running 24/7.

To disarm the American people is to enslave the entire world.

I despise liars, criminals, injustice, corruption that walks about in the daylight with its head held high. That doesn’t mean the Republicans aren’t filled with great reset loyalists and so are the courts! There is no democrat party anymore, just globalists and propaganda, that’s not my fault I notice it and cannot ignore what I see. My hope is that I’ll get through to you, most of what you see on TV isn’t real, at all!

I’m sorry but I feel like I need to break through the conditioning and attempt to open people’s eyes to the realities of our dilemma. If there is ever a point you begin to believe the cable news you are in a world of danger. If anything the last year has taught us they never tell the truth. The coverage is horrendous lies and they are causing actual riots by altering stories and outright lie to stir up race wars. I do not like racists and I believe there are plenty of evil people of all races and a few good ones of all races.

I don’t watch TV, I barely watch anything and I only shop in stores where people aren’t harassing people about masks. I went into a store in another town the other day and a lot of people were wearing masks and I felt like it was a room filled with unstable damaged people. I was afraid of them, that they were conspiracy theorists or could be violent based on some weird propaganda campaign to think anti-maskers are terrorists or something.

It made me feel like maybe I need to start checking in with the news every once in a while just to find out what the hell is going on with everyone. The best part was I looked the one Amish man in the eye in passing and we shared a moment of connection. It was like an unspoken message “the world has gone insane” then a nod, especially the ones with the elbow-length gloves. We are the normal ones, it’s a shame you can’t see that and you’re missing a once-in-a-lifetime opportunity to turn and look your masters in the face and see them without the mask.

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Turn off the #cablenews

92% Of NYC Restaurants Couldn’t Afford Rent, The Great Reset Seems To Have Targeted Restaurants

92% Of NYC Restaurants Couldn’t Afford Rent, The Great Reset Seems To Have Targeted Restaurants

We know that NYC has been inside of the occupied territories for years and now they have begun deconstruction of the cities “non-essentials” and Industries that compete against their investments they seem to be taking down. The fact that major American corporations have begun operating as a cartel and blockading businesses, people and even the dually elected President of the United States.

Anyone who comes out with proof or exposes their crimes is being silenced, the lie is being pushed as the truth and the “cable news has become the enemy of the people. It’s sick how people can’t stay away from the fake news of every flavor. The truth is the “news” is just the globalist’s propaganda arm to push this world government agenda.

The Great Reset

These people always operate on crises and it bleeds through that they are lying every time.

From Fox 5 NY

new report from the NYC Hospitality Alliance shows the extreme financial problems restaurants in New York City are facing, as 92% of the city’s restaurants could not afford to pay their rent in December.

The number has steadily worsened throughout the pandemic, from 80% of restaurants in June 2020 not being able to pay rent.

The NYC Hospitality Alliance’s survey showed that only 40% of restaurants, bars, and nightlife establishments saw their landlords reduce their rent due to COVID-19, only 36% of landlords deferred rent in relation to COVID-19, and only 14% of businesses have been able to successfully renegotiate leases.

The Great Reset Is Coming For The Dinner Table!

Read https://silverreportuncut.com/they-really-want-to-kill-all-the-cows-the-great-reset-is-no-theory

New York City recently returned to indoor dining at 25% capacity, but business owners and industry leaders insist that a path to reopening at 50% occupancy is necessary for restaurants to stay afloat.

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“We’re nearly a year into the public health and economic crisis that has decimated New York City’s restaurants, bars, and nightlife venues,” said Andrew Rigie, executive director of the NYC Hospitality Alliance. “While the reopening of highly regulated indoor dining is welcome news, we need to safely increase occupancy to 50% as soon as possible, and we urgently need robust and comprehensive financial relief from the federal government. We will continue to work with Senator and Majority Leader Schumer to ensure that the $25 billion restaurant industry recovery fund is passed as part of the Biden administration’s emergency relief plan, and advocate for the enactment of the RESTAURANT’s Act to save as many local eating and drinking spots and jobs as possible.”

If You Believe The Official Narrative You Are Being Lied To, They Admit It On Video

First Texas Energy Casualty Just Energy Warns It Likely Won’t “Endure” Following Unprecedented #EnergySqueeze

First Texas Energy Casualty Just Energy Warns It Likely Won’t “Endure” Following Unprecedented #EnergySqueeze

Just Energy’s shares crashed more than 21% in the premarket after the company released a statement about steep losses incurred during the winter storms that swept across Texas last week warning of doubts about remaining a ‘going concern’ (translation: it may not survive).

“The financial impact could change as additional information becomes available,” it said in the statement.

“Accordingly, the financial impact of the Weather Event on the Company once known, could be materially adverse to the Company’s liquidity and its ability to continue as a going concern.”

Just Energy hit a record low ($4.05) in premarket trading since it went public in 2002… and peaked above $600 in 2007.

The retail energy provider specializing in electricity and natural gas commodities, renewable energy options, and carbon offsets revealed that it lost $250 million due to Texas’s latest “weather event”.

“The sustained high prices from February 13, 2021 through February 19, 2021, during which real-time market prices were artificially set at USD $9,000/MWh for much of the week, it is likely that the Weather Event has resulted in a substantial negative financial impact to the Company.”

Based on current information available to the company as of the time of this press release, the company estimates that the financial impact of the Weather Event on the company could be a loss of approximately USD $250 million (approximately CAD $315 million), but the financial impact could change as additional information becomes available to the company,” Just Energy stated. 

Read https://silverreportuncut.com/they-call-it-a-commodity-super-cycle-what-does-that-even-mean

The company warned the material impact could cause “liquidity” issues and raises doubts it can continue operating. It’s currently talking with top stakeholders regarding the impact of the weather event last week. 

As we first discussed more than a week ago, and long before the full extent of the Texas freeze was revealed (see “Energy Trader: We’ve Officially Hit “Holy S*it Levels“), the extreme moves in natgas caught many energy and power companies offside, and Just Energy may well be the first causality of last week’s weather event. In the coming days, more energy firms could release statements about steep losses. 

“We’ll have to see what kind of defaults come to the surface,” Again Capital’s John Kilduff said, and as of this moment we are waiting to see who else drowned in the “rogue wave.”

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They Call It A Commodity Super-Cycle, What Does That Even Mean?

They Call It A Commodity Super-Cycle, What Does It Mean?

So they have come up with a new name for inflation blowing out producer prices, a commodity super-cycle. This doesn’t have to be destructive as long as you are paying attention to our rapidly changing world. My chief concern in all of this is actually the government. I fear they will come in a wreck the entire economy and control what they don’t destroy.

Commodities have been suppressed for a long time and we have already begun to see the beginning fragments of the super surge. Energy prices recently went insane crush families and small businesses alike and the elite are telling us this was just a prequel of what is to come.

By Variant Perception

There are three big drivers of the commodity supercycle:

  • The long era of monetary-policy dominance is over, leading to a heightening of inflation risks not seen since the 1960s
  • Investors are deeply underweight and will need real assets such as commodities as a hedge against inflation
  • Commodities are generationally cheap, both compared to themselves and to other assets

It is rare in macro-forecasting when the stars align so perfectly. The combination of substantially different inflation risks, capital scarcity across several commodity sectors, and 50 years’ of underperformance compared to financial assets make commodities one of the most compelling long-term investment opportunities at the moment.

Commodity Super Cycle
Chart Source: Bloomberg, Macrobond and Variant Perception

Policy Drivers of Supercycle

The convergence of fiscal and monetary policy represents a profound change to the investment landscape.  Monetary policy, hitting up against zero rates and with central banks’ balance sheets already bloated, it is becoming ever more incumbent on more fiscal policy to boost economies and inflation.

But policymakers should be careful what they wish for.  Large government deficits financed by pliant central banks have preceded every high and hyper-inflationary episode of the 20th century, from Weimar Germany in the 1920s, to Hungary in the 1940s, to Argentina in the early 1990s.  QE has lulled people into a false sense security as it was not inflationary.  QE created a supply of dollars, and relied on the banking system to “transmit” those dollars.  But a private sector still licking its wounds from the financial crisis did not want to borrow, and banks did not want to lend, which meant borrowing and therefore inflation did not sustainably pick up.

Chart Source: Bloomberg, Macrobond and Variant Perception

The pandemic accelerated a trend that was already in place: the increasing impotency of QE.  Now we need QE combined with large government deficits, which is a very different beast to QE on its own as it creates supply of money and a simultaneous demand for that money.  History shows this has much greater inflationary potential.

Changing Inflation Regimes

We are shifting from the “Lake Regime” to the “Ocean Regime”.  In the Lake Regime of the last 20-30 years, cyclical moves in inflation were contained and containable as monetary policy on its own still had teeth.  But in the Ocean Regime, where we are today, the underlying risks to inflation have shifted, and garden-variety moves in inflation have a greater likelihood of becoming unanchored and disorderly.

Source: JMW Turner

This does not mean inflation is imminent, but it does mean any short-term rise in inflation could turn into something longer-lasting and persistent.  However, the nature of inflation is that it does so abruptly and with little warning.  It is just like how Ernest Hemmingway described how one goes bankrupt, “first slowly, and then suddenly”.

What Should You Do?

This is why action must be taken today to make portfolios more inflation-resilient.  Looking to the high-inflation 1970s, commodities were the only major asset class to deliver a positive real (ie inflation adjusted) return.

Chart Source: Bloomberg, Macrobond and Variant Perception

When we combine this structurally positive backdrop for commodities with a capital-cycle analysis the case for commodities becomes more compelling.  In short, sectors suffering from capital scarcity tend to outperform as lack of competition causes returns to fall below the cost of capital.

Source: Capital Returns

Based on our analysis, several sectors in the commodity space, such as gold and silver mining, integrated oil and gas, and copper are among the most capital-scarce sectors globally.  Underinvestment in supply means these sectors will not be able to respond to the strong recovery in demand we should see this year as the world emerges from the pandemic.

When demand meets excess supply of dollars meets an investment community severely underinvested in real assets such as commodities, the only thing that can respond is price.  This is what we have been seeing, with commodities up 43% since April last year.

Commodity Super-Cycle
Chart Source: Bloomberg, Macrobond and Variant Perception

The shorter-term gains may be behind us, but the potent structural backdrop for commodities and real assets we have outlined support a much longer-lasting commodities supercycle that is beginning.

Read https://silverreportuncut.com/prices-paid-surging-historic-copper-shortage-inflation-indicators-are-firing-on-all-cylinders

They Really Want To Kill All The Cows, The Great Reset Is No “Theory”

They Really Want To Kill All The Cows, The Great Reset Is No “Theory”

It’s been apparent to me the country is in trouble though many even among my own audience don’t seem to notice. Some people view me as extreme but my mission is to learn truth and only speak things I believe to be true. The truth has led me to despise the Great Reset and Communism in general. Man has been born free and blame it on my American upbringing but this statement sounds like music to my ears

The truth is the most powerful people in the world are overthrowing all governments and constitutions to institute world government. This isn’t a secret, it’s not in darkness anymore. A quick duckduckgo.com search will show you the Great Reset is urged by the Davos crowd.

The people are pissed and they have become tone deaf. The globalist elite are working tirelessly to set up detainment camps (communist prison camps) to exterminate the freedom loving people as is necessary in all communist nations.

The world has never seen a communist world government and that would be the greatest evil the world has ever known. The secret is “control the food and you control nations” which is why it’s significant Bill Gates is using the government puppets as personal assistants to make laws that people need to buy His products. this includes the fake meat

I think it’s clear I am an American and I value my Liberty and this is not a partisan fight, why are we fighting? We argue about whatever the cable news orders us to talk about while we’re losing all of our freedom.

Billionaire Bill Gates Calls For Rich Nations To Switch To 100% Synthetic Beef, Which He Owns

Billionaire Bill Gates has called on the U.S. and other wealthy countries to give up eating beef entirely and switch to synthetic alternatives due to climate change

‘I don’t think the poorest 80 countries will be eating synthetic meat. I do think all rich countries should move to 100% synthetic beef,’ Gates the MIT Technology Review in an interview on Monday.

‘You can get used to the taste difference, and the claim is they’re going to make it taste even better over time. Eventually, that green premium is modest enough that you can sort of change the people or use regulation to totally shift the demand,’ Gates mused.

read: https://silverreportuncut.com/the-end-is-near-for-airlines-as-we-know-them-welcome-to-the-great-reset

Prices Paid Surging, Historic Copper Shortage, Inflation Indicators Are Firing On All Cylinders

Prices Paid Surging, Historic Copper Shortage, Inflation Indicators Are Firing On All Cylinders. Copper is the first indicator as it surges toward all-time highs, Base metals are all soaring and silver is lagging. The US PMI data came out and prices paid by producers came in the hottest level ever recorded as manufacturers warn the price increases will be handed to consumers.

Historic Copper Shortage

Supplies have reached a critical stage and prices are already hot

The rumor terminating from Wall Street is base metals led by Dr. Copper are about to break records and wallets for producers. Demand is already outstripping copper supplies and this is a phenomenon underway among most of the base metals.

Inflation Indicators

Inflation Indicators Firing On All Cylinders

Commenting on the PMI data, Chris Williamson, Chief Business Economist at IHS Markit, said:

“Despite headwinds of COVID-19, extreme weather and record supply chain delays, US businesses reported the fastest output growth for almost six years in February.

“The data add to signs that the economy is enjoying a strong opening quarter to 2021, buoyed by additional stimulus and the partial reopening of the economy as virus related restrictions were eased on average across the country.

“Business sentiment remains buoyant, boosted by hopes of further stimulus and the vaccine roll out, but it’s disappointing to see this not yet translate into stronger jobs growth. Many service sector firms in particular remain reluctant to hire, cautious about adding to overheads.

Don’t miss Texas Blackout Costs Mexican Manufacturers $2.7 Billion

“A concern is that firms costs have surged higher, driving selling prices for goods and services up at a survey record pace and hinting at a further increase in inflation.”

That last sentence is a little understating the matter.

  • Input costs across manufacturing and services soared higher as demand outstripped supply, rising at by far the steepest rate since comparable data were first available in 2009.
  • Service providers registered the steepest increase in cost burdens since October 2009, while manufacturers recorded the quickest rise since April 2011.
  • As a result, firms raised their selling prices at the sharpest rate on record (since October 2009), with panellists stating the increase was due to the partial pass-through of greater costs to clients.  
  • Substantial price increases for inputs such as PPE led to the fastest rise in cost burdens since data collection began in October 2009. That said, more encouraging demand conditions allowed firms to pass on a greater proportion of the cost increase to clients through a marked rise in selling prices. The rate of charge inflation was the second-fastest on record (behind only November 2020).

Texas Blackout Costs Mexican Manufacturers $2.7 Billion

Texas Blackout Costs Mexican Manufacturers $2.7 Billion

Check out our recent videos

By Noi Mahoney of Freightwaves,

Rolling power blackouts have affected key industrial sites across Mexico, including border states home to hundreds of factories producing everything from auto parts to electronics.

Texas Blackouts Cost Mexican Manufacturers $2.7 Billion

Factories across northern Mexico states such as Tamaulipas, Chihuahua and Nuevo Leon reported more than $2.7 billion in losses from blackouts that started Monday when Texas began limiting natural gas supplies, according to Mexico’s National Council of the Maquiladora and Export Manufacturing (INDEX).

INDEX reported 2,600 companies across Mexico have been affected by the power outages since Monday. 

General Motors, Mazda and Volkswagen are suspending some of their operations for several days in Mexico due to the natural gas shortage, the automakers said in separate statements.

“Due to the natural gas shortage affecting the Mexican territory, our Silao Guanajuato Complex was forced to stop its operations on the night of February 16 and February 17,” GM said in a statement.

Volkswagen adjusted the production schedule of its plant in Puebla where it produces the Jetta, Taos and Golf model cars. 

Japanese automaker Mazda announced it would stop production of its plant in Salamanca, Mexico, starting Wednesday due to the lack of natural gas from the U.S. Production could resume by Friday.

More blackouts across Mexico could be on the horizon with Texas Gov. Greg Abbott’s announcement that natural gas sale and exports to Mexico will be suspended until Sunday.

“Some of the natural gas produced in Texas is occasionally shipped out of state. Today I have issued an order effective today through February 21, requiring producers who have been shipping to locations outside of Texas to instead sell that natural gas to the Texas power generator which will also increase the power produced and it will be shipped to homes in Texas,” Abbott said during a Wednesday press conference. 

Ports of entry across Texas have been mostly unaffected by the wintry weather, according to U.S. Customs and Border Protection.

“The Los Indios International Bridge in Brownsville, Texas, has been closed until further notice due to no electricity or water. Commercial traffic is diverted to Veterans International Bridge,” according to a Thursday email from CBP.

Silver Shortage And Silver Price Analysis: XAG/USD on the rise, $27.80 crucial resistance

Silver Price Analysis: XAG/USD on the rise, $27.80 is a crucial resistance

I came across this Silver price analysis from FX street and thought it was interesting, I feel the difference between the paper markets and the physical couldn’t possibly be more stressed. Essentially the world doesn’t have enough silver at current and demand is surging leaving bullion banks taking riskier moves to keep the illusion afloat.

Read: The Very Real Silver Shortage

Silver Price Analysis

NEWS | 2/15/2021 3:03:20 AM GMT | By Omkar Godbole


  • While silver trades higher, resistance at $27.80 is still intact.
  • A move above that would confirm a range breakout.

Silver trades near $27.55 at press time, representing a 0.87% gain on the day. 

While the metal is flashing green, it is yet to take out resistance at $27.80 (the previous week’s high). 

A move above that level would imply a bullish breakout from the narrowing price range signaled by the previous week’s candle, whose high and low falls well within the preceding week’s price range. 

Above $27.80, the focus would shift to $30.09, the high seen earlier this week. On the other hand, acceptance under the previous week’s low of $27.31 would put the bears in a commanding position, exposing support at $24.06, the higher low created on Jan. 6.

Daily chart

Silver Price Analysis

Trend: Bullish above $27.80

Technical levels

  1. R328.09
  2. R227.76
  3. R127.51