ICYMI: Why Buy Silver Now?

Arcadia Economics SilverFix

Jan 23, 2024

∙ Paid

Economic situation- China is in crisis, No Brics are buying
Vault situation- Shanghai Drainage
Metal Sourcing- Scrap is the game now
Technicals- Bearish below 23.21
Flows- CTAs are short and playing China
Gold- China buying
What was done
What makes the trade work

Last Week Recap:

The Basing Action- that will occur if Friday’s closing price is $23.76 (March future)
Bullish- Above 24.50
Bearish- A close under 23.21

1- Economic situation: China is in crisis, No Brics are buying

China will need to finally loosen the reigns and let the stimulus come. When that happens, you will see Silver up during China hours. will add then

2- Vault situation: Shanghai Drainage

Draining metal means taking it out, not buying it in China. This is a flow trade now, not a stock trade. The EFP will be a tell if we are near a bottom again

3- Metal Sourcing: Scrap is the game now

You cannot know what is going on behind the scenes. Price action now is encouraging longs of scrap to sell to Banks buying for China. When that metal is done being sourced, the market will change again