Sponsored by Hertz Energy

Five Major U.S. Banks Face Billions in Losses as Surging Silver Prices Pressure Short Sellers

Silver prices have spiked significantly in October, climbing nearly 8% this month to exceed $33.60 per ounce, leaving some of the largest U.S. banks with potentially substantial losses tied to their short positions on the precious metal. This sudden increase has triggered concerns within the financial sector about potential repercussions for both the banking system and industries reliant on stable silver prices.

The price surge, which has pushed silver prices past their highest levels in over a year, has been driven by a combination of high demand in industrial sectors and investor speculation. As per The Silver Academy, data from the Commodities Futures Trading Commission reveals that open interest in silver futures now totals 157,264 contracts, each of which represents 5,000 ounces of silver. This equates to approximately 786.3 million ounces, a figure close to a full year’s global silver production.

You can read more on the matter here.

What’s going on?

• Kazakhstan Clarifies Position on BRICS Partnership Status (theDeepDive)

• Ontario developer hopes new house-building robot can alleviate industry’s productivity woes (Globe)

• Poilievre promises to abolish federal sales tax on new homes under $1 million (BNN)

• Brazil Secures $23 Billion Settlement with Vale and BHP Over Dam Disaster (theDeepDive)

• Volkswagen plans to close at least 3 German plants and cut thousands of jobs (FT)

• Japan's government in flux after election gives no party majority (Reuters)

• AT&T Announces $1 Billion Agreement with Corning (theDeepDive)

• Economists Warn of New Inflation Hazards After Election (WSJ)

• Ukraine Braces for Russians to Assault With North Korean Troops (NYT)

• Newmont’s Q3 Earnings Breakdown: All That Glitters Is Not Gold (theDeepDive)

• Oil-sands giants, federal agency back at table as carbon-capture talks gain momentum (Globe)

• Iran says it will 'use all available tools' to respond to Israel's attack (Reuters)

What’s the latest?

• CRA Hack: During this year’s tax season, the Canada Revenue Agency discovered that hackers used H&R Block Canada’s credentials to access hundreds of Canadians’ CRA accounts, redirecting over $6 million in fraudulent refunds. The CRA and H&R Block, each conducting their own investigations, found no evidence of a breach in their respective systems, and the hackers’ identities remain unknown.

• VW Struggles: Volkswagen plans to close at least three factories in Germany, lay off tens of thousands of employees, and downsize its remaining German operations as part of an extensive restructuring, according to the company’s works council head, Daniela Cavallo. This move reflects the carmaker's struggle with slowing demand in China and Europe, as well as rising competition from Chinese electric vehicle manufacturers in the European market.

• New Build Taxes: Conservative Leader Pierre Poilievre has announced a plan to eliminate the GST on new homes priced under $1 million if elected, aiming to save buyers $40,000 on an $800,000 home and boost housing construction by 30,000 units annually. This proposal builds on his previous promise to remove GST on new rental housing below market rates and follows the Liberal government’s similar move last year to remove GST on new rental projects, offering a $25,000 tax break on a $500,000 rental unit.

• Boeing Financing: Boeing has launched a nearly $19 billion share sale to address liquidity issues and avert a potential credit downgrade, selling 90 million common shares and $5 billion in depositary shares. The infusion is crucial for Boeing to manage cash flow challenges, fund the production ramp-up for its 737 Max, and maintain its investment-grade rating amidst ongoing manufacturing disruptions from a worker strike.

• Montreal Port: Dockworkers at the Port of Montreal held a one-day strike on Sunday, adding pressure amid challenging contract talks, following earlier strikes on overtime and a three-day stoppage at two terminals. The Maritime Employers Association hopes renewed discussions with the Federal Mediation and Conciliation Service will bring both sides back to the negotiation table after 15 months of mediation without an agreement.

Newmont's Q3 earnings breakdown

The stock market and stuff

• Canada on track to be world’s third-largest wheat exporter in 2024-25 crop year (Globe)

• New York Stock Exchange To Move To 22-Hour Trading On Arca Platform (theDeepDive)

• China Jan-Sept gold consumption slides 11% as high prices deter buying appetite (Reuters)

• Americans Will Lead the Canadian Massive Bull Market | Collective Mining with Ari Sussman (theDeepDive)

• QatarEnergy takes 50% stake in TotalEnergies solar project in Iraq (Reuters)

In the juniors

• Aura Minerals To Acquire Bluestone Resources For Consideration Of $0.50 Per Share (theDeepDive)

• Rua Gold Sees Siren Gold Shareholders Approve Acquisition Of Reefton Assets (theDeepDive)

• Canadian Copper Secures Right To Acquire Caribou Complex With 3,000 tpd Mill (theDeepDive)

• Heliostar Discovers New Zone With 16.7 g/t Gold Over 16 Metres Intercept (theDeepDive)

FULL DISCLOSURE: Hertz Energy is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Hertz Energy. The author has been compensated to cover Hertz Energy on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.