And even if you were to ignore all these facts, it’s impossible to overlook the dwindling supply of silver. 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 2021, though, it became more than just a typical Reddit gathering. 3D illustration of silver bullion bars over a blue background with growing chart.

  1. Regardless of what ends up happening, there’s no denying that WallStreetSilver has forever changed the precious metals market.
  2. The task of a short squeeze may be a difficult one, but the fact is that hedge funds are against the ropes while retail traders are throwing the big hooks.
  3. Some of these were only temporary measures, and many directly targeted the Hunt brothers.
  4. This doesn’t mean manipulation isn’t taking place, though, and the saga of the Hunt brothers proves this is something that can happen.
  5. People began buying silver and pouring money into SLV (iShares Silver Trust).

The massive reduction in silver used in American coins is a major reason behind this decrease. The amount that most federal treasuries now hold is negligible. If the U.S. government suddenly had a need for silver at its 1970 levels, they’d have to purchase over 300 million ounces to meet it. Gamestop and AMC certainly dominated news in the investing world during the first half of 2021. If you paid attention to what was happening on Reddit, though, you likely also heard of WallStreetSilver and the silver squeeze. Thereafter, the WallStreetBets community decided to turn their sites towards the silver market in an attempt to raise the price of a market that has long been rumored to be intentionally suppressing prices.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article. Don’t make the mistake of automatically going with a dealer who appears to be quoting the lowest price for a product. That price may not include hidden charges or upsells that are tacked on later. During the decade of the 1970s, as paper assets got clobbered by inflation, gold delivered average annual returns of 30.7%. The S&P 500 barely eked out nominal gains of 1.6% per year – which were far too puny to keep pace with an inflation rate that surged into the double digits by the end of the decade.

Because this fund tracks the market price of silver, SSLN is up nearly 10% today. Making investment choices is a personal decision, but it’s hard to overlook what’s happened in recent months. There’s definitely an impending silver shortage coming, and when combined with issues such as government reserves thinkmarkets malaysia review 2021 and industrial needs, enormous increases in the price of silver could be on the way. For some reason, though, talk of a silver squeeze hasn’t subsided. That’s because the precious metal is heavily shorted – meaning there’s a large number of futures contracts predicting the price will drop.

If there is a pullback, prices may retrace to the $27 to $28 price level. History proves that gold and silver perform well overall in inflationary times. To be sure, shortages currently exist in some retail bullion products, largely a result of production bottlenecks and high retail investor demand for the white metal. Here we will answer a few of the most pressing questions currently on the minds of precious metals investors. Strong demand for bullion products amid tight market conditions and unprecedented “stimulus” measures from Washington have lots of people asking lots of questions. Because of these decreases, many people called it history’s “greatest theft in the silver market.” The raid that found its roots in WallStreetSilver intended to push back against price manipulation.

Silver squeeze explained

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin.

After all, this type of analysis helped me spot Bitcoin’s recent run-up ahead of time. Right now, silver futures are trading in a range between the $22 support level and the $30 resistance level that formed at the peak in early-August. If silver can push above $30 on strong volume, the odds of an even more extensive bullish move will increase.

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. 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. 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 that could culminate as a result of Basel III, the #SilverSqueeze, and inflation.

Here’s why I use the Warren Buffett approach to try to beat the stock market

The person also noted silver stocks available to retail investors—First Majestic Silver Corp and the iShares Silver Trust ETF. 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. 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. 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. It was shortly after the Reddit-fueled, meme stock saga that the silver market landed squarely in the cross-hairs of the online community. However, the supposed silver squeeze and the one that followed have been rather ineffective when compared to short squeezes on Gamestop (GME) and the like.

Inflation: The Final Catalyst to Real Gold and Silver Prices

So retail investors, driven by Reddit and social media, are piling cash into GameStop shares. 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. Speaking from a technical perspective, silver prices are extremely overbought. The Relative Strength Index on the daily time frame has reached near $70, which means a pullback is likely.

Is A Silver Squeeze Ahead? Here Are The Charts To Watch

This information is made available for informational purposes only. It is not a solicitation or a recommendation to trade derivatives contracts or securities and should not be construed or interpreted as financial advice. Any examples given are provided for illustrative purposes only and no representation is being made that any person will, or is likely to, achieve profits or losses similar to those examples.

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. Any performance statistics that do not adjust for exchange rate changes are likely to result in an inaccurate portrayal of real returns for sterling-based investors. There are rumblings of a potential “silver squeeze” ahead as Reddit traders attempt to replicate last week’s GameStop GME short-squeeze in the silver market.

Watch his full analysis of the forces about to set off a physical silver rally on AZTV’s Mike Broomhead show. Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. They believe that by buying and holding GameStop, they can force the price higher, and force GameStop short-sellers to buy back the shares at ever-higher prices.

I couldn’t fail to have seen the GameStop buying frenzy that has consumed US markets in the past week. The American video game retailer is in a very unusual situation. Incidentally, since its inception, the HUI gold stocks index has underperformed the gold price. Looking longer term, gold has risen almost 10,000% – from $20 to nearly $2,000 per ounce – since 1930, priced in America’s depreciating fiat money. This doesn’t mean manipulation isn’t taking place, though, and the saga of the Hunt brothers proves this is something that can happen.