Even more exciting is the fact that silver’s logarithmic chart, dating back to the 1960s, reveals a cup-and-handle pattern, indicating the potential for silver to reach several hundred dollars per ounce during this bull market. In order to the 5 most traded currency pairs in 2021 confirm this particular scenario, silver needs to close decisively above the $50 resistance level. This history of manipulation adds another explosive element to the coming silver squeeze. As banks potentially race to exit their short positions and protect their physical holdings, their very efforts to escape the trap they created could accelerate the squeeze’s momentum.

“It’s not surprising to see the sharp and abrupt uptick in consumer demand overwhelm the physical supply of silver coins held by dealers in the short term,” Ryan Fitzmaurice, a commodities strategist at Rabobank, told CNN Business in an email. 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. The massive reduction in silver used in American coins is a major reason behind this decrease. 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. Jesse Colombo is an economic analyst who warns about bubbles and future financial crises.

Rising threat of World War III could see gold hit $2,800 by Christmas – analyst

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. 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. The next condition I outlined was that silver priced in euros must decisively close above the €30 resistance level, which was established at the May peak.

What To Watch For

Our community is about connecting people through open and thoughtful conversations. We want our readers to share their views and exchange ideas and facts in a safe space. Traders have also poured into mining firms and coin-selling sites warn of delays in delivering silver amid unprecedented demand. Scrolling through the many threads in the Reddit group reveals what one might expect from any best online brokers for bitcoin trading online community.

The contracts traded 11% higher at $30.35 an ounce earlier in the day, the highest level since Feb. 15, 2013. Kitco NEWS has a diverse team of journalists reporting on the economy, stock markets, commodities, cryptocurrencies, mining and metals with accuracy and objectivity. 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. ” emojis are certainly exciting, they’re not really the crux of what’s going on in the movement.

SPOT BUYING OPPORTUNITIES

I stated that this event would help confirm a close above $32.50, greatly reducing the chances of it being a false breakout. I find it valuable to analyze silver priced in euros, as this approach removes the impact of U.S. dollar fluctuations, offering a clearer view of silver’s intrinsic strength or weakness. Notably, silver priced in euros often respects round numbers like €26, €27, and €28, frequently establishing key support and resistance levels at these points.

During this time, I’ve observed significant investor cynicism, as many grew frustrated with silver’s sideways movement over the last five months. In that content, I encouraged investors to remain confident, as I believed silver was on the brink of a historic bull market. 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. In this article, I will break down the details of silver’s Friday breakout and explain why a powerful silver squeeze has now officially begun. In the end, this isn’t just about profit potential – though that certainly exists. It’s about the resolution of decades of market distortion and the reimagining of how we price and trade one of humanity’s most crucial metals.

1. This could mark the end of the banking cartel’s long-running scheme to suppress silver prices.
2. The price of silver surged higher on Monday as the Reddit-fueled boom in highly shorted stocks appears to be spilling over into the metals market.
3. If silver can close above $30 in a convincing manner, the next price target to watch is $35 and so on.

Conversely, if silver lags behind money supply growth, it suggests a potential period of strength ahead. 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. In recent months, the price of silver has been on an upward trajectory, capturing the attention of investors and market observers alike. Behind this surge lies the potential for a phenomenon known as the “silver squeeze,” where increased demand from investors places pressure on short sellers and drives prices higher.

Gold/Silver Ratio

And with silver being a depleting asset, the supply-demand imbalance is poised to worsen. Buying physical silver or shares of silver stocks is a way to be involved in the so-called « Silver Squeeze 2.0. » When more investors buy a stock or commodity, short-sellers usually need to sell shares to cover their losses. SLV is one way to get involved, although you should always be aware of the risks in any kind of short squeeze. J.P. Morgan Chase is one of the largest traders of precious metals, so the Reddit user mentioned taking on the banking giant. The person also noted silver stocks available to retail investors—First Majestic Silver Corp and the iShares Silver Trust ETF. The price of silver surged higher on Monday as the Reddit-fueled boom in highly shorted stocks appears to be spilling over into the metals market.

To understand the silver squeeze, you first need to know the meaning of a short squeeze. The dramatic spikes in GameStop and other heavily shorted stocks were due in part to a short squeeze, which is a phenomenon where investors who have bet against a stock are forced to buy shares to cover their positions as the name moves higher. The spike in demand for silver appears to be related to retail traders in the Reddit forum WallStreetBets, which has helped drive trading activity in heavily shorted stocks like GameStop and AMC Entertainment in recent weeks. That’s because the precious metal is heavily shorted – meaning there’s a large number of futures contracts predicting the eur to dkk exchange rates, euro price will drop.

I still believe that these safe-havens will thrive in the years to come as central banks continue to flood the world with liquidity in an attempt to prop-up the debt-ridden global economy. 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. 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.