Traders have also poured into mining firms. Plus, all this new investor attention is bound to bring more people into the space, which has been lagging behind gold for some time. Buying physical silver or shares of silver stocks is a way to be involved in the so-called 'Silver Squeeze 2.0.' When more investors buy a stock or commodity, short-sellers usually need to sell. The Silver Squeeze is a hedge-fund coordinated attack so they can keep fighting the GME fight, one user posted on r/WallStreetBets (GME is GameStop). As to why? Supportive macro forces - more industrial demand, Biden’s move towards green technology as well as silver’s safe-haven properties.
#Silver squeeze free
Yet, analysts remain confident that silver will reach the $30 dollar mark and move closer to $50 this year. The silver squeezers, having relocated to WSS, soon had CFTC's acting chairman Rostin Behnam pouring fuel on the fire, further galvanizing the movement when he inadvertently slipped and handed it the expression 'tamping', with regards to silver's price, and removed any doubt that it had anything to do with free open market valuation.
#Silver squeeze full
Full story: Redditors set sights on silver after GameStop frenzy. Silver hits 30 for first time since 2013. The Wall Street Bets community even ended up taking down the famous post titled ‘The biggest short squeeze in the world is in SLV,’ which seemed to have triggered the whole move into silver. Popular WSB post warns against silver squeeze. If we look at the average daily volumes on Comex silver since the start of 2020, they come to around $11 billion dollars.Īnd third, the Reddit disagreement. RT ComstockRoyalty: Article 5: Biden will be RE-INSTATING THE DRAFT SOON Probably Sooner Than you Think. Second, the sheer size of the silver market is another big obstacle. The monthly silver chart shows the 22 to 30 trading range along with other likely resistance levels at 35, 45, and 50 that formed at prior peaks in 20. Yet, analysts remain confident that silver will reach the 30 dollar mark and move closer to 50 this year. So, let’s take a look at why the silver squeeze didn’t happen and why prices fell after briefly hitting above $30 an ounce.įirst, the main issue has been that the silver market is more liquid, which makes it very different from plays like GameStop. The Wall Street Bets community even ended up taking down the famous post titled ‘The biggest short squeeze in the world is in SLV,’ which seemed to have triggered the whole move into silver. In fact, most of Reddit posts from this week warned against buying into silver because it was a distraction from its original GameStop play. But one big misconception in the whole silver saga was that the Reddit community was united in the call. “IT’S IMPERATIVE WE DO NOT ‘SQUEEZE’ IT.(Kitco News) Silver received an unprecedented amount of attention this week. “CITADEL IS THE 5TH LARGEST OWNER OF SLV,” a WallStreetBets user wrote Sunday, referring to the ticker symbol for iShares Silver Trust. The iShares Silver Trust (SLV 0.27), which holds silver bullion and acts as a market-traded proxy for silver prices, was higher by nearly 9 by early afternoon on Monday.
The so-called silver squeeze has caused division on the "WallStreetBets" Reddit forum, with some users arguing that they should keep targeting GameStop shares because Citadel Securities, the electronic-trading firm owned by hedge fund billionaire Ken Griffin, is thought to benefit from a rise in the metal since it is a major holder of iShares Silver Trust. GameStop-Robinhood stock revolution: Not a secure retirement plan If it is a trap, no one can say for sure. Although the argument presented for a silver squeeze carries some weight, there are some clear unknowns. Stock prices are linked to supply and demand. As people buy more units in exchange traded silver products, more silver would need to be added to cover the units. Silver squeeze explained To understand the silver squeeze, you first need to know the meaning of a short squeeze. What we see is that the silver price has moved sideways. The green line is the price of the dollar in silver terms (inverse to the conventional price of silver in dollar terms). The basis (blue line) is the abundance of the metal to the market, and the cobasis is the scarcity. Communications on messaging boards claim hedge funds have now become active on Reddit anonymously, attempting to drive them out of GameStop bets and into silver, but only after hedge funds had taken huge positions. Solar collection, a form of solar energy, uses hundreds of thousands of mirrors (called heliostats) spread over a wide area to concentrate the sun’s rays on tanks of. Buying silver in ETFs/ETCs controls the amount silver in the LBMA vaults that can be used for other purposes. Here is a graph of the supply and demand fundamentals of silver. Some of these smaller traders believe the hedge funds that were pillaged last week are behind the surge in silver.
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