This shrinking supply will intensify the impending silver short squeeze, driving an even more dramatic price surge. For a deeper dive into silver’s bullish fundamentals, be sure to check out my article from earlier this year. Like we mentioned earlier, a true silver short squeeze is difficult to execute because of silver’s steady long-term price action. Demand for silver in the industrial sector increases relatively consistently each year, and retail investment in physical silver is a constant fixture of the market.

But as far as the people on the newly formed “WallStreetSilver” mercatox exchange reviews forum are concerned, this is indeed the truth, and they are determined to expose it. The recent surge in silver prices and the potential for a silver squeeze underscore the enduring appeal of this precious metal as an investment asset. 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. What follows is a cyclical pattern where the price of silver rises and forces more traders to sell their short positions or buy more stock in the appreciating asset, which, in turn, drives prices even higher.

Since WallstreetBets is making a splash around the globe and across the board of all social media platforms, the number of his followers have exploded within very short time to more than 7 million followers alone on Reddit. An unprecedented huge silver buying wave is piling up under the hashtag #SilverSqueeze. As such, we at Elementum are glad that our customers have been able to accumulate a silver treasure over the last years as it may prove up once again that physical silver stored in a safe place is a safe bet. At the moment, we are still able to source and deliver freshly minted LBMA-hallmarked silver bullion from our suppliers Umicore and Heraeus. 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.

• As silver prices rise, these banks face potential billions in losses on their short positions.
• “There’s far more cash trying to chase physical assets because we’re suffering the bite of inflation, and supply in all of these markets is becoming extraordinarily thin,” explained Eric Sepanek.
• The incident served as a catalyst for discussions about market transparency, the role of social media in trading behavior, and the need for balanced regulatory frameworks to ensure market integrity.
• When we decided to take delivery, what should have been a routine 5-day process turned into a nine-month odyssey of excuses and misdirection.
• Just like a trader who is long on a stock loses money in proportion to how much that stock loses value, short traders lose money when a stock appreciates, or becomes more valuable.
• 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.

What is a Silver Short Squeeze?

Under normal market conditions, big banks that deal in bullion such as JPMorgan and HSBC, along with hedge funds and high-frequency trading firms, serve to balance prices between New York and London. For instance, when prices rise on the New York COMEX, traders sell those futures contracts and buy lower-priced London futures, earning a small profit. These “arbitrage trades” tend to hold the two trading centers roughly in balance. Last week, Money Metals reported uncertainty in the gold and silver markets due to worries about tariffs on precious metals entering the United States. We’re seeing signs that concern is growing, creating an Current dogs of the dow interesting dynamic in the London precious metals market. Given that silver prices took out the $30 price level earlier today, the next major psychological resistance is $35 and $40.

Inflation: The Final Catalyst to Real Gold and Silver Prices

Keep in mind that Ghali’s projection of “slowing demand growth” is coming off record industrial demand, and we’ve already seen market deficits for four straight years. TD Securities senior strategist Daniel Ghali told Bloomberg that the threat of tariffs is already “accelerating the timeline to depletion” of the free-floating silver stock in London. He projects a significant supply crunch this year despite a slowdown in demand growth.

The Banking Cartel’s Silver Scheme: Decades of Price Suppression

He also explains why this movement is similar to past price surges, including what happened in April 2011. The silver market has always fascinated me, particularly because of its dual role as both a precious and industrial metal. What many don’t realize is that we’re heading into what could be the most significant silver bull market in history – one that could make the 1970s look like a mere preview. Let me tell you why, but first, let me share a revealing story from my time at Sprott that exposed just how fragile the silver market really is. If the London Metal Exchange (LME) had not paused and reversed trades during the short squeeze, Guangda stood to lose billions of dollars as the price of silver skyrocketed.

The Year of $3K Gold

Regulatory responses to the Silversqueeze underscored the need for updated oversight and potential reforms to address the https://www.forex-reviews.org/ challenges posed by new forms of market participation. The incident served as a catalyst for discussions about market transparency, the role of social media in trading behavior, and the need for balanced regulatory frameworks to ensure market integrity. As the world continues to transition to a more sustainable future, the demand for silver is only going to increase. With its unique combination of properties, silver is poised to play a vital role in the 21st century. Be the first to discover the newest products and the latest news about precious metals.

• Every year, analysts who are bullish on the price of silver sound the alarm that a silver short squeeze may be happening and that prices for the precious metal may start to rise.
• The silver market, long considered the neglected cousin of gold, stands on the precipice of what could become one of the most spectacular short squeezes in financial history.
• The coming silver squeeze will likely make our previous delivery issues look minor in comparison.
• Contrary to the rumblings of some analysts in the precious metals space, there is little reason to suspect that we are currently experiencing a silver short squeeze.
• Silver prices recorded two consecutive weeks of gains on Friday, following two back-to-back weeks of losses.
• Based on projections, industrial silver demand set a record last year of over 700 million ounces.

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. Eric Sepanek is the founder of Scottsdale Bullion & Coin, established in 2011. With extensive experience in the precious metals industry, he is dedicated to educating Americans on the wealth preservation power of gold and silver. In response to the Silversqueeze, regulatory bodies around the world began to scrutinize market activities and the role of social media in influencing trading behavior.

They have claimed that a handful of commercial COMEX traders are holding a large short position that far exceeds the amount of physical silver they actually possess. 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.