Hashtag Silversqueeze Pushes Silver Above $30 How High Can It Go?

By the end of the month, GameStop shares went from $17.25 to about $345. Shortly thereafter, the short squeeze was done and GameStop’s stock came tumbling down. Silver is different in many ways from individual stocks like GameStop, AMC, Blackberry and many more. For instance, having a short squeeze in silver could be difficult because it’s a much deeper and more highly liquid market.

Of course, we’ll keep monitoring this WallStreetBets silver squeeze story and trends moving forward. Leveraged naked short desk, went out and became the largest modern-day silver stack over the last near-decade of time. JPMorgan’s silver desk in later 2010 and 2011 got caught flat-footed, likely naked short #SilverSqueeze’d as silver ran from the teens to its seemingly ancient $50 oz high mark tripling within about 1/2 yr of time.

They purchased both physical assets and paper silver (e.g. futures contracts). It’s a well-known fact that silver and gold can help you hedge against inflation. The key is purchasing gold and silver before the steep premiums trade all crypto that could culminate as a result of Basel III, the #SilverSqueeze, and inflation. If you don’t want to worry about market volatility, however, you’ll want to make sure you’re buying the right silver products.

  1. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading.
  2. The idea behind the “silver squeeze” thesis is that big banks and hedge funds currently have massive short positions in the silver market for the purpose of suppressing the price of the precious metal.
  3. With reference to Table 2, year-on-year increase in physical investment was 12% and the increase in ETP investments was 47%.
  4. Shawn emphasizes the company’s drilling success, smart acquisitions, and impressive growth in a challenging environment.

However, reddit traders need to understand that the silver market is much more liquid than individual stocks like GameStop
GME
, AMC and Blackberry, which caused real pain for some prominent hedge funds last week. Basel III could accelerate the efforts of Wall Street Silver, the Reddit group behind the Silver Squeeze. The Silver Squeeze is a concerted effort by these investors to stop the big bullion banks’ silver market manipulation.

FTSE 100 and FTSE 250 value stocks I’d buy for my ISA today!

The idea is to drive prices of the stock high enough to force the hand of these hedge funds to buy back the stocks they have borrowed to sell, at a loss. It was reported that silver was also the target of a short squeeze after the success they had with GameStop and AMC shares. Reddit retail traders have once again taken a position against hedge funds and money managers. The hashtag “Silversqueeze” is top trending on social media channels, including Twitter and Reddit, and retail traders are buying silver like there is no tomorrow. Silver crossed above the $30 mark earlier today, and silver ETFs experienced a massive inflow on Friday.

You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK. Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. Information presented by DailyFX Limited should be construed as market commentary, merely observing economical, political and market conditions.

An important lesson for these young investors and speculators to learn. When playing stock or derivative casinos, rules can and will be changed to serve the interests of ownership or those violent monopolists (i.e. sovereign governments) who allow casinos to even exist. The WallStreetBets crowd understandably jeered stating the naked shorts were rigging the casino rules to slant the table to help them out of their ongoing losses. The entire annual global supply of silver is enough to produce 39 million Electric Vehicles per annum. Do your own diligence – nothing on this website is financial advice. Traders have also poured into mining firms and coin-selling sites warn of delays in delivering silver amid unprecedented demand.

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The forward-thinking approach extends beyond immediate exploration goals. Khunkhun reveals the company’s intention to explore potential mergers and acquisitions. By actively seeking opportunities for consolidation or partnerships, Dolly Varden Silver Corp. aims to strategically position itself within the mining industry, leveraging synergies and growth prospects. The Mogollon Project is the largest historical silver producer in New Mexico with at least 16.4Moz Ag and 339kox Au of production at grades of 298g/t Ag and 6.16 g/t Au or 795 g/t AgEq between the 1880s and 1943.

Silver Investment

You should not invest any money you cannot afford to lose, and you should not rely on any dividend income to meet your living expenses. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, administrative costs, withholding taxes and different accounting and reporting standards. They may have other tax implications, and may not provide the same, or any, regulatory protection. Exchange rate charges may adversely affect the value of shares in sterling terms, and you could lose money in sterling even if the stock price rises in the currency of origin.

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. Most of these short future positions are in fact hedging against physical silver exposure or miners securing prices in future months to deliver mined silver. In other words, these short futures positions are being offset with physical silver held in their inventory.

The surge in volume is circled in red, while the average true range (ATR) indicator – which depicts an average of daily price movement – also peaked. ” emojis are certainly exciting, they’re not really the crux of what’s going on in the movement. Many of those involved say they want nothing more than for the price of silver to return to a fair and accurate level. Scrolling through the many threads in the Reddit group reveals what one might expect from any online community. There are memes, videos, stories and more than a few opinions on the greatness of silver.

Inflation: The Final Catalyst to Real Gold and Silver Prices

You can pick up Jame’s most recent, comprehensive 200+ Page book here at SD Bullion. Ongoing short squeezes, allegedly produced by young WallStreetBets’ subReddit stock market traders, basically slapped the face of many in the Wall https://traderoom.info/ Street establishment. GameStop closed the week up 400%, while the S&P 500 suffered its worst week since October 2020. The Hunt brothers managed to accumulate two-thirds of the entire global supply of privately owned silver.

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