#Scenario
You’re short #silver at $70.
Then the U.S. #government sets a price floor at $80.
What happens?
You’re instantly underwater.
Not by market volatility — but by policy.
There is no pullback.
There is no dip to cover.
Trading below $80 is no longer allowed.
Your loss is locked in:
–$10 per ounce.
$50,000 per COMEX contract.
Margins are raised.
Liquidity disappears.
You get a margin call — or a forced liquidation.
And here’s the killer part 👇
If physical silver is tight and delivery is demanded, your paper short turns into a physical obligation.
No metal?
You pay any price — or cash-settle with penalties.
This isn’t a normal short squeeze.
This is a state-backed repricing.
A price floor doesn’t protect short sellers.
It eliminates them.
You can short the paper.
You can’t short a floor.
The moment a floor is set,
the old silver market is over.
Yes, the floor could be set below $80.
But here’s the catch:
If it’s set too low, metal disappears.
Miners don’t invest.
Refiners slow down.
Physical supply dries up.
Then the state either:
• raises the floor quietly
• buys metal directly
• or subsidizes the gap
In other words:
A low floor just delays reality.
The real floor isn’t a number.
It’s where silver refuses to sell.
P.S. $80 is just a hypothetical example.
The price could be set lower — but it could just as easily be set higher. $XAG
You’re short #silver at $70.
Then the U.S. #government sets a price floor at $80.
What happens?
You’re instantly underwater.
Not by market volatility — but by policy.
There is no pullback.
There is no dip to cover.
Trading below $80 is no longer allowed.
Your loss is locked in:
–$10 per ounce.
$50,000 per COMEX contract.
Margins are raised.
Liquidity disappears.
You get a margin call — or a forced liquidation.
And here’s the killer part 👇
If physical silver is tight and delivery is demanded, your paper short turns into a physical obligation.
No metal?
You pay any price — or cash-settle with penalties.
This isn’t a normal short squeeze.
This is a state-backed repricing.
A price floor doesn’t protect short sellers.
It eliminates them.
You can short the paper.
You can’t short a floor.
The moment a floor is set,
the old silver market is over.
Yes, the floor could be set below $80.
But here’s the catch:
If it’s set too low, metal disappears.
Miners don’t invest.
Refiners slow down.
Physical supply dries up.
Then the state either:
• raises the floor quietly
• buys metal directly
• or subsidizes the gap
In other words:
A low floor just delays reality.
The real floor isn’t a number.
It’s where silver refuses to sell.
P.S. $80 is just a hypothetical example.
The price could be set lower — but it could just as easily be set higher. $XAG