The Happy Hawaiian: Silver – The Original Cryptocurrency
Tom welcomes a new guest, “The Happy Hawaiian,” to the show. He prefers to keep a low profile and explains his interest in silver and why he enjoys promoting silver on Reddit. He has always been interested in finance and has enjoyed making riskier plays such as partaking in the GameStop short squeeze. That’s where he became aware of the potential for a short silver squeeze.
Fundamentally people desire scarcity, particularly in a world with massive amounts of money printing. This is why bitcoin has outperformed, and unlike the dollar, it is limited and decentralized. Silver has a high rate of industrial use, most of which is not recyclable. It’s limited, scarce and people around the world will accept it as having value. It’s the most anti-fiat play at the moment.
He estimates the amount of silver above ground in the world. His goal is to see true price discovery for the metal.
He discusses the active short position and why a squeeze could be possible due to the quantity of shorts and the overall lack of metal. It would be difficult for these holders of paper to acquire enough silver to cover at current prices. Prices would have to rise in order to get the longs to sell.
Happy Hawaiian argues that buying coins and other forms of retail silver is not the same as directly buying 1000 oz bars. Retail items have premiums, supply issues, and manufacturing costs, while large silver bars offer much more direct exposure to the metal. This is why the PSLV has a critical role in correcting the silver market and is the easiest way for investors to gain exposure to the 1000oz bar market.
He believes the short squeeze is working on silver as the inventory is declining while deliveries are increasing. They are trying to control the market, but there is a definite risk that they will lose control. The fact that JP Morgan, a company that has been fined over a billion dollars and called a criminal enterprise, is the custodian for most silver ETFs should be all investors need to know.
Time Stamp References:
0:00 – Introduction
0:56 – Background
3:15 – Silver Fundamentals
6:05 – Quantifying Silver
7:37 – Shorts & Squeezes
8:44 – Silver Short Interest
11:54 – Coins Vs. Delivery Bars
17:05 – SLV vs. PSLV
22:18 – JP Morgan & ETF Inflows
27:33 – PSLV and Short Positions
28:42 – Squeeze Working?
33:28 – Types of Bull Markets
36:55 – Smoke Indicator
40:47 – Wrap Up
Talking Points From This Episode
- Silver Reddit Movement
- Fundamentals of Silver
- Retail vs. Delivery Bars
- ETF’s and JP Morgan