Even if there were no underlying “bad acts” on February 2, 2021, the Hunt brothers have already proven that the government and heads of exchanges can change rules when they want to. There’s a thought among those in the community that market manipulation 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.
It has a wide industrial use on the one hand and it is a monetary “StoreOfValue” asset on the other. This gives it a unique characteristics to perform superbly under the widest range of the future outcomes. And when the FED joins the party of negative rates, this sum will double instantly.
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To understand the silver squeeze, you first need to know the meaning of a short squeeze. Short-sellers borrow shares of stocks that they expect to drop in price. Then they sell the stock and attempt to buy it back at a much lower price. larry williams trading and investing books In January 2021, GameStop and AMC weren’t the only stocks experiencing major swings fueled by certain Reddit communities. A user in the WallStreetBets forum posted about an attempt to create a short squeeze on silver futures. Silver is different in many ways from individual stocks like GameStop, AMC, Blackberry and many more.
- At Silver Gold Bull, our content is researched, written, edited and reviewed by a team of financial experts with decades of experience in the precious metals industry.
- 3D illustration of silver bullion bars over a blue background with growing chart.
- A user in the WallStreetBets forum posted about an attempt to create a short squeeze on silver futures.
- Additionally, one of the most major uses of silver is in the industrial world.
- You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
- Even if there were no underlying “bad acts” on February 2, 2021, the Hunt brothers have already proven that the government and heads of exchanges can change rules when they want to.
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Some of the biggest recent happenings in the investment world have arisen thanks to users of the Reddit website and app. The insane increases seen in GameStop and AMC share prices had their inception in the WallStreetBets community, and the big news in silver is at least partially attributable to WallStreetSilver. Shares of precious metal miners that stand to benefit from higher silver prices soared Monday, with both Coeur Mining and Pan American Silver up by double digits. I believe that chart analysis is a tool that is helpful for determining if a large move is likely ahead in the silver market.
What most people don’t realize is that a similar “raid” already took place in history. During the inflationary period in the 1970s, William Hunt, Lamar Hunt and Nelson Hunt set out to corner the market on silver. They purchased both physical assets and paper silver (e.g. futures contracts). Claims online are that gold and silver prices are being repressed by financial bets against them, experts say.
You can be assured that when the next crises arrives (or the current takes a turn for the worse), the FED will go negative. 3D illustration of silver bullion bars over a blue background with growing chart. Our community is about connecting people through open and thoughtful conversations. We want our readers to share their views and exchange ideas and facts in a safe space.
Yes, that is the same Greece that defaulted Who trades futures just a few years ago. And some money managing clowns are now buying Greek bonds with the negative nominal interest rates. Nobody understands exactly how the future pensioners whose money this clowns manage (of course without any skin in the game) should somehow benefit from it.
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SLV is one way to get involved, although you should always be aware of the risks in any kind of short squeeze. However, if that stock’s price increases drastically, it can cause short sellers to lose money by having to buy back at the higher prices to minimize losses. The silver squeeze is caused by investors buying up silver in an attempt to drive up prices and “squeezing” the investors. There are reports that they are paying high premiums even for large 1000 oz. Bars (a sign of shortage) and that the inventories on the commodity exchanges are not big enough to last much longer should the buying of physical silver continue at the current rate. J.P. Morgan Chase is one of the largest traders of precious metals, so the Reddit user mentioned taking on the banking giant.
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That is partly what helped fuel a massive surge in GameStop last week. The most actively traded futures contracts for the precious metal climbed to their highest level in almost eight years Monday, extending recent gains as the Reddit-fueled buying frenzy spilled over into the commodities market. Some people were posting pics of the silver they were buying on Reddit (r/WallStreetSilver is a home of #SilverSqueeze community on advanced white label crypto exchange Reddit), some were posting on Twitter, some on Facebook, some on Instagram and TicToc.
“Why not squeeze $SLV to real physical price,” the user added, referring to the iShares Silver Trust, the world’s largest silver exchange-traded fund. On Twitter, #silversqueeze was trending as investors turned their attention to the latest market strategy to emerge from the “WallStreetBets” forum on Reddit. Kitco NEWS has a diverse team of journalists reporting on the economy, stock markets, commodities, cryptocurrencies, mining and metals with accuracy and objectivity. Our goal is to help people make informed market decisions through in-depth reporting, daily market roundups, interviews with prominent industry figures, comprehensive coverage (often exclusive) of important industry events and analyses of market-affecting developments.
Explore the range of markets you can trade – and learn how they work – with IG Academy’s free ’introducing the financial markets’ course. There is around 3 billion ounces of silver in the form of coins and bars (everything else is already jewellery or was used in the industrial products). So if you buy a mere 20 ounces, you’ll own much more than the average person will ever have a chance to buy and hold.
Its goal is to closely mimic the performance of the price of silver. “Shares of the Trust are not subject to the same regulatory requirements as mutual funds,” according to the iShares site. Many smart investors have recognised that this is a dangerous path (for the stability and survival of our currencies and fixed income assets (bonds, cash deposits)) but also that it will provide an outsized investing opportunities. And that the most robust saving & investing opportunity one can grab in a given situation is to buy silver. If you are familiar with the word “anti-fragile”, you’ll see why it is the perfect word to describe silver in the current situation.
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In addition to this, today’s one-day percentage gain is the biggest since 2008. The below silver chart shows the one-day percentage change in price. In fact, we could make an argument that WallStreetSilver single handedly created the current drive to buy physical silver.