#silversqueeze is coming, stocks could be depleted in two years TD Securities

The videos also allege fraud, in the form of fractional reserve selling of metal. This crime is apparently not just for banks anymore, as the conspiracy theorists widen their net to accuse refiners, dealers, and depositories. That is, the annualized spread to decarry silver is lower, for farther-out contract months than for near.

The Supply Squeeze

People can argue over whether the price of silver will skyrocket, but it’s hard to deny that market manipulation exists. 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. 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. 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.

Trending News

Since 2003, SilverSeek.com has served millions of readers with the latest silver news and information. Although Friday’s trading began like any ordinary day, volume surged in the afternoon as it became evident that silver’s breakout above the $32.50 resistance level had staying power. It’s likely that a good portion of this volume came from traders scrambling to cover their short positions—a topic I’ll explore in greater detail later in this article. The heavy trading volume serves as a crucial confirmation of silver’s breakout, signaling that major institutions or ‘smart money’ are getting on board. This significantly reduces the likelihood that this is a false breakout. Basel III could accelerate the efforts of Wall Street Silver, the Reddit group behind the Silver Squeeze.

Contact us now at email protected to find out more about buying and storing silver bars and coins in a secure and private manner. 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. In the early part of best finviz screener settings for day trading reddit 2021, though, it became more than just a typical Reddit gathering.

Live Spot Gold

Since the mid-2010s, silver has slightly lagged behind M2 growth, which, combined with other factors discussed in this piece, position it for a strong rally. Silver’s breakout on Friday marks a pivotal moment in its ongoing bull market, confirming many of the key conditions I’ve been highlighting for weeks. Earlier in this article, I mentioned that a significant portion of Friday’s silver buying volume was likely driven by short-covering. Short-covering happens when traders who have bet against an asset, like silver, through short-selling are forced to buy it back as the price rallies, in order to limit their losses. 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.

• 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.
• The goal of the #SilverSqueeze community is to trigger a short squeeze due to the huge short positions in the silver market in order to force the shorters to cover their positions.
• 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.
• In order to confirm this particular scenario, silver needs to close decisively above the $50 resistance level.
• That is, the annualized spread to decarry silver is lower, for farther-out contract months than for near.
• Sure enough, on Friday, what began as a typical day saw silver surge nearly 7%, meeting the criteria I had outlined to confirm the next phase of its bull market.

Factors Driving Rising Prices

• The company has struggled during the COVID-19 pandemic, and its revenues have been declining.
• Silver’s unique properties make it indispensable in numerous industries, from technology and medicine to energy and defense.
• 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.
• But many of his followers didn’t buy stock in the open market, they bought leveraged call options that made them a lot more money.
• For decades, a small group of powerful banks has maintained massive short positions in silver, effectively acting as a cartel to control and suppress prices.
• Thanks again for your analysis and explanation regarding the massive amount of shorts and their upcoming dilemma.

This situation has been allowed to continue since most traders who purchase futures contracts choose to settle for cash and rarely take delivery of the actual metal. Allegedly, this can create the false impression that there is an abundance of silver, while in fact, it is in short supply. Unfortunately, the silver market is quite opaque, and we have no way of knowing whether these allegations are true or not. trader discusses his best day trading strategy But as far as the people on the newly formed “WallStreetSilver” forum are concerned, this is indeed the truth, and they are determined to expose it.

According to Jeffrey Christian of precious metals analyst firm CPM Group, there exists around 3.4 billion ounces of physical silver in bullion form in the world today—plus another 2.0 billion ounces of coinage. They saw this as an opportunity to challenge bitcoin cash price today, bch live marketcap, chart, and info and potentially expose this manipulation. It is too soon to determine whether or not the ‘silver squeeze’ movement will have any long-lasting impact on the silver market. Traditional silver stackers, who have been accumulating silver bullion for decades, are getting together with young millennials, for whom the concept of hard currency is new and fresh.

The Silver Squeeze: Understanding the Impact of Rising Prices

President Biden has promised to invest 1.7 trillion dollars to fight climate change, an initiative that will involve a transition to renewable energy sources such as solar panels. Since a solar panel requires a certain portion of silver for its manufacture, we can only expect industrial demand to increase in the future. Another source of demand which is on the rise is electric vehicles, which require much more silver to produce than traditional internal-combustion-engine vehicles. If the great success of Tesla Motors is any indicator of things to come, the transportation sector will surely need more silver.