When does the price reflect the "squeeze"?
It doesn't. If you look at the "squeezes" of the last years there is no clear pattern, after some squeeze days silver went up, after others it went down. (This time it crashed.) The silver price is impacted by industrial size ingots, not small size bullion.
The "squeeze" is about taking metal off the market. It impacts the silver price only as long as it contributes to taking 1k oz bars off the market, but for doing that retail bullion sales takes a lot of time because the bars must to to the mints -> wholesale distributors -> bullion dealers etc.
Concentrating it in one single day only jacks up premiums.
Look at what happened with the bullion dealers that didn't up premiums, like First Mint quoted above. They were sold off in 15 minutes.
So what achieved the squeeze? It made a couple of smart stackers happy.
Good for them, but that's not the point of the squeeze, isn't it.
As far as the quantity of metal taken off the market goes there is no difference between a bullion dealer selling off his inventory in 15 minutes at spot and another one selling off his inventory in 1 week at 3% premium.
One could even argue that the second one suits better those silver investors that are unexperienced, uninformed, not quick enough or have a job that doesn't allow them to be online all the day.
Concentrating buying of small size bullion in one day is the best way to jack up premiums. That's not bullion dealers greed, it's how market works and it's a good thing because price adapting to demand makes the silver market efficient.
The "squeeze" usually results in principled people paying unnecessarily high premiums, which ironically goes against the squeeze' goal of taking off the market as much metal as possible.
The squeeze would make sense if it went into buying allocated metal because allocated metal concerns 1k oz bars. Plus there is no minting and no distribution costs, so very low spreads.
Don't forget that while everybody is focused on premiums - the difference between spot and sale price - what counts is the spread - the difference between buy and sale price: those bullion dealers who so generously participated in the squeeze selling their inventories in 15 minutes, which discount do they buy back their bullion at?
Allocated offers people the advantage of trading bullion not just at low premiums but with low spreads.
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