SD Bullion warned that “due to unprecedented silver demand” it would also be unable to accept orders until Sunday evening. The Winklevoss twins, who famously sued Facebook’s Mark Zuckerberg and were early backers of bitcoin, both tweeted support for the push by WallStreetBets into silver. The silver market is the latest flashpoint in the Reddit mania that took over Wall Street last week.
Wall Street Silver and Reddit
As the asset’s price rises, these traders become increasingly desperate to buy it back to close their positions, which in turn fuels the rally even further. If the buying is aggressive enough, this can lead to a short squeeze, amplifying the upward momentum. A significant portion of Friday’s silver buying volume was likely driven by short-covering. However, unlike GameStop and other unloved stocks targeted by WallStreetBets, silver futures have been strong of late. Hedge funds and other institutional investors had been bullish on silver futures and the precious metal was trading near multi-year highs. As this happens, it’s easy to foresee a significant increase in the price of silver.
Gold price sharply up on safe-haven demand, bargain hunting
By staying informed, exercising prudence, and adopting a disciplined approach to investing, individuals can navigate the silver market with confidence and seize opportunities for long-term growth and financial stability. Gold, a major driver of silver prices, is generating a strong tailwind for silver after breaking through two key resistance levels since September. By every measure, gold is in a confirmed uptrend, and I believe it’s on track to reach $3,000 in the near future. While gold reaching $3,000 might a bit far-fetched, it’s actually quite realistic, as it’s just over a 10% increase from today’s price.
During the inflationary period in the 1970s, William Hunt, Lamar Hunt and Nelson Hunt set out to corner the market on silver. There’s a thought among those in the community that market manipulation net developer job descriptions salary and interview questions has purposefully kept the price of silver down. And while this may seem like an over-the-top claim, it’s hard to deny the facts of what happened on what has become known as the “Silver Raid Day” in February 2021. The long-term gold-to-silver ratio chart reveals that silver is currently significantly undervalued compared to gold, indicating that silver has much more room to rise in order to catch up. If the ratio were to revert to its historical average of 52.8 since 1915, even without any increase in gold’s price, silver would be valued at a respectable $51.55 per ounce.
- Earlier in this article, I mentioned that a significant portion of Friday’s silver buying volume was likely driven by short-covering.
- In recent months, the price of silver has been on an upward trajectory, capturing the attention of investors and market observers alike.
- The sales director also said that the size of the silver market would make it difficult for retail traders alone to create a sustained move higher.
- According to this theory, if enough small investors buy into the silver market, the big banks and hedge funds will be forced to cover or buy back their short positions, which would send the price of silver soaring.
- As silver continues its upward trajectory, the potential for explosive gains has never been clearer.
- At its peak, Robinhood restricted trades from 50 companies, including GameStop, AMC Entertainment, BlackBerry and Nokia.
On Friday, silver finally broke through the €30 level with such momentum that it even closed above €31, signaling the strong potential for further gains in the coming week. By every measure, gold is in a confirmed uptrend, and I believe it’s on track to reach $3,000 in the near future. The silver market, long considered the neglected cousin of gold, stands on the precipice of what could become one of the most spectacular short squeezes in financial history. This isn’t just another market manipulation story – it’s a confluence of structural weakness, industrial necessity, and growing awareness that could reshape the precious metals landscape forever. For the past several weeks, I’ve been writing articles and creating video presentations about an imminent silver breakout that could quickly push prices to $50.
Given the current size of their short position, bullion banks face nearly $200 million in losses for every dollar increase in the price of silver. Now, just imagine what will happen as silver climbs by $5, $10, $20, and beyond from this point. There are rumblings of a potential “silver squeeze” ahead as front end developer what is front end development explained in plain english Reddit traders attempt to replicate last week’s GameStop GME short-squeeze in the silver market.
The risk of an explosive silver short squeeze is further amplified by the astonishing ratio of 408 ounces of «paper» silver—ETFs, futures, and other derivatives—for every single ounce of physical silver. In a violent short squeeze, holders of «paper» silver could be forced to scramble for the extremely scarce physical silver to fulfill their contractual obligations. The recent surge in silver prices and the potential for a silver squeeze underscore the enduring appeal of this precious metal as an investment asset. While market dynamics may fluctuate in the short term, silver’s intrinsic value and diverse range of applications position it as a compelling option for investors seeking to preserve wealth and hedge against economic uncertainty.
#silversqueeze is coming, stocks could be depleted in two years – TD Securities
Robinhood’s faced major backlash and several lawsuits for restricting trading of some meme stocks. National Securities Clearing Corporation (NSCC) asked the company to put up $3 billion in collateral, forcing the app to curb some stocks. This demand was later lowered and the company raised over $1 billion from investors.
WallStreetSilver and the Silver Squeeze: What You Need to Know
In 2023, the deficit reached 184.3 million ounces, with an even larger shortfall of 215.3 million troy ounces projected for 2024. The silver deficit in recent years has rapidly depleted above-ground supplies, tightening supply even further. This shrinking supply will intensify the impending silver short squeeze, driving an even more dramatic price surge. For a deeper dive into silver’s bullish fundamentals, be sure to check out my article from earlier this year.
Silver has long been prized for its intrinsic value and diverse range of industrial and investment applications. As a precious metal with unique properties, including conductivity, reflectivity, and antibacterial qualities, silver plays a vital role in various sectors, including electronics, solar energy, and healthcare. Additionally, silver has served as a store of value and a hedge against inflation and economic uncertainty, making it a popular investment choice for individuals seeking to diversify their portfolios. The silver discussion on Reddit was not all in favor of buying the metal and related equities, with some users arguing that the «silver squeeze» was an attempt to distract from the trading in GameStop and others. Other posts were in favor of bidding up silver, and one user on Friday night referenced the Hunt brothers’ attempt to corner the silver market in 1980. That follows a 6% rally last week when some posts on the WallStreetBets group on Reddit called for betting on silver as a way to hurt big banks they believe are artificially suppressing prices.
WallStreetSilver is right about short selling having a major effect on the price of any asset. After all, many of those “short” on silver are the same ones who produce the metal for retail use. For a while in February, silver was the talk of the town in the precious metals world. Internet searches related to buying gold had long dominated similar searches for strategies to trade volatility effectively with vix silver. One look at Google Trends, though, shows that silver overshadowed the yellow metal for an entire week. It’s a well-known fact that silver and gold can help you hedge against inflation.