#silversqueeze is coming, stocks could be depleted in two years TD Securities
And all of the sudden small and large silver bullion dealers were out of inventory and they started buying physical inventory big time. Or have you just overheard some talking about how buying silver is the best investing opportunity out there? Even if you’ve not, it looks like you won’t have to wait long to see a titles in national media about looming shortages of physical silver (e.g. major commodity exchange being unable to deliver what was already bought) and astronomic rise of its price. Because this silver snowball has just started rolling down the hill.
There are memes, videos, stories and more than a few opinions on the greatness of silver. In the early part of 2021, though, it became more than just a typical Reddit gathering. Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs. Spread bet, trade CFDs or deal shares – decide which of our products is best for you. Share this post (or link to it) on social media and help people gain knowledge.
Silver suppliers started seeing an increase in orders before February, but on February 2nd, something big happened. People began buying silver and pouring money into SLV (iShares Silver Trust). ” emojis are certainly exciting, they’re not really the crux of what’s going on in the movement.
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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.
- Robinhood’s faced major backlash and several lawsuits for restricting trading of some meme stocks.
- “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).
- What most people don’t realize is that a similar “raid” already took place in history.
- 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.
Silver prices surged by more than 10% to over $30 an ounce Monday morning as Reddit-informed retail traders piled in on the commodity, the highest since February 2013. At Silver Gold how to read currency exchange rates Bull, our content is researched, written, edited and reviewed by a team of financial experts with decades of experience in the precious metals industry. With each piece we write, we bring our own personal experience and expertise, while combining that with today’s leading research and data. Our ultimate goal is to help extend our award-winning customer service to our educational content. Ultimately, we want you to feel comfortable and informed when making investment decisions, regardless of whether that is with us or not.
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The person also noted silver stocks these 2 penny stocks could rally all the way to $11 say analysts available to retail investors—First Majestic Silver Corp and the iShares Silver Trust ETF. Armies of retail investors, determined to challenge Wall Street’s financial hegemony, have helped drive up the stock of struggling companies like GameStop, AMC, BlackBerry and even Blockbuster, spurring massive losses for the hedge funds who had shorted the stocks. Many have also piled into the one-time-joke cryptocurrency Dogecoin, which was inspired by a viral image of a Shiba Inu dog.
Does this necessarily mean a massive conspiracy is taking place? After all, many of those “short” on silver are the same ones who produce the metal for retail use. People can argue over whether the price of silver will skyrocket, but it’s hard to deny that market manipulation exists.
Many Wall Street insiders even bet that this will take place in the near future. Regardless of what ends up happening, there’s no denying that WallStreetSilver has forever changed the precious metals market. At one point, the billionaire brothers owned one-third of the world’s silver supply. Their actions caused the price of silver to rise from $6.08 per troy ounce at the beginning of 1979 to $49.45 just one year later. In the end, their investments in futures contracts were their undoing. If the price goes up enough for an extended period of time, the thinking goes, the big investors who bet against gold and silver would eventually have to reverse those trades, buying back in – and pushing the price even higher.
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Share dealing and IG Smart Portfolio accounts provided by IG Trading and Investments Ltd, CFD accounts and US options and futures accounts are provided by IG Markets Ltd, spread betting provided by IG Index Ltd. For now, I am watching and waiting to see if silver can close decisively above $30. I’ve been very optimistic about the outlook for safe-haven assets like gold and silver. Because I had been correctly expecting a serious economic crisis, I have favored safe-haven assets over risk assets such as stocks and real estate.
Many of those involved say they want nothing more than for the price of silver to return to a fair and accurate level. “You saw a splintering of the consensus on the Reddit message board. But because large hedge funds own net long silver positions, it created a split once some of the traders on the message board realized this,” said Ross Mayfield, an analyst at Baird. 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 2011 and 2012. If silver can close above $30 in a convincing manner, the next price target to watch is $35 and so on.
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Whether these actions were appropriate – many of which received government support – remains up for debate. What it proved, however, was that the “higher ups” could change the rules. Following a record 2020, silver has traded in a narrow range after finishing last year up nearly 50%. The iShares Silver Trust, a BlackRock exchange-traded fund tracking the metal, rose by 7% on Monday. Jesse is now a popular and controversial financial media personality with over 200,000 social media followers and nearly 10 million views per month on all platforms.
The idea behind WallStreetSilver is that the precious metal is seriously undervalued due to market manipulation. In the minds of many, though, purchasing large supplies of silver could rectify this. Doing so would drive up demand, limit supply and thus make price manipulation more difficult. The silver market frenzy extended to physical demand for the metal, with coin dealers reporting delays in deliveries as they were overwhelmed by demand. A big move in the physical price of silver could hurt big investors that were anticipating it to fall. Silver futures jumped 9.3% to $29.40 a troy ounce, their biggest one-day percentage gain since March 2009 and the highest level since interactive brokers group vs tradestation February 2013.
Buying during the pandemic certainly played a big role, but it wasn’t until Reddit investors jumped in that the sale of bullion jumped over 250 percent. While this high level of interest has waned a bit, people have remain focused on WallStreetSilver, the Silver Raid and the potential impending silver squeeze. If you haven’t heard of these issues and events, the following guide will help you understand what’s going on and what it could mean for you. Now just for some perspective imagine what will happen if a small part of the money from those $18 trillion of negative yielding bonds starts finding its way in the safe anti-fragile hard asset without counterparty risk that is silver.
The Relative Strength Index on the daily time frame has reached near $70, which means a pullback is likely. If there is a pullback, prices may retrace to the $27 to $28 price level. Silver prices recorded two consecutive weeks of gains on Friday, following two back-to-back weeks of losses. The big bull run started on January 28, when the silver open price was $25.26 and the low was $24.86. On Friday, January 29, silver prices touched a high of $27.65, and this bull run pushed the silver spot price above $30 today. In simple words, silver has surged nearly 19% since Thursday last week.