Nate Fisher: Beating the Bullion Banks at Their Own Game
Today, we are joined by Nate Fisher, an Investor, Writer, and IT Systems Analyst. He is a complex systems analyst and studies risk with information technology. He discusses how the Repo market failure back in September 2019 led him into a deep dive studying economics. He was looking for a way to defend his wealth and protect his family.
He points out that at times silver and gold can be hedged on the futures markets to the tune of 900 days of production in one day. This hedging appears to be price manipulation.
He says, “The silver squeeze on Twitter cleaned out a lot of the physical silver supply, and the WallStreetBets event showed that people could combine their strength.” It also brought a lot of media attention to silver. He felt that increased demand for physical would affect the 1000oz bar market and that Eric Sprott’s PSLV could help break the commercial shorts.
He is taking advantage of his skill set to analyze the silver markets and recently wrote an article titled “Why the Silver Longs and Eric Sprott can defeat the Silver Shorts – an Education in 4D Chess” which encouragingly was retweeted by Sprott Money Ltd.
Nate outlines the various price manipulation methods and why many commercial banks are still net short. There are reports of insiders selling at high levels, possibly indicating a coming stock market correction.
Silver prices are being controlled by paper markets and have nothing to do with the real physical markets. He feels the price will move past $35 in the next month. The big question is of the 500 million in open interest how much will stand for delivery. He expects a significant price break in March, and if you need silver for your industry, you need to be careful.
Nate argues that much of the private silver supply held by investors may not be available for sale. We are getting near the end-game; they can play the paper game, but the supply-demand fundamentals are about to correct. He cautions there is the risk that those running these markets could decide to change the rules.
Expect to see continued pressure on the silver paper markets and shortages in the physical silver markets. Over the next two weeks, you should see the price push into the $30 range. The fundamentals are showing that something is going to happen in March. He says, “Silver is the asymmetric play of a lifetime.”
Talking Points From This Episode
- Silver Market Structure
- Supply/Demand Deficit and Paper Manipulation
- Industrial Demand & Silver Price Inelasticity
Time Stamp References:
0:00 – Introduction
2:20 – Silver Fundamentals
4:35 – Eric Sprott’s PSLV
9:20 – Commercial Bank Motivations
12:42 – Comex Open Interest
17:41 – Industrial Price Inelasticity
22:48 – Silver Squeeze Movement
32:44 – ETF’S PSLV vs. SLV
44:30 – June, Banking and Basel III
48:18 – Wrap Up
Sprott Tweet: https://tinyurl.com/14wi6emd
Nate’s Article: https://tinyurl.com/yo9glxw7
Hidden Secrets of Money: https://www.youtube.com/watch?v=P4_1pwsm5LY
Nate Fisher is an IT contract project manager living in York, PA. He has an undergrad in Information systems along with a master’s degree in cybersecurity and business administration. Nate has many side interests, one being investing to include precious metals, mining, and rental properties. He is a part-time blogger and writes about PMs, miners, and health and fitness. Nate is a self-described renaissance man, and you can find out more from his website and Twitter.