Jesse has been writing an online column for Forbes since 2013 and is the Director of Marketing, North America at BullionStar — one of Asia’s premier gold and silver bullion dealers that is now entering the U.S. market. There is a high probability that silver will quickly run to $50 in the course of this rally. I’m focusing on $50 as a relatively short-term target because it’s a significant psychological level and the peak reached during both the 1980 and 2011 rallies. how to watch crypto market For the past several weeks, I’ve been writing about an imminent silver breakout that could quickly push prices to $50. Silver is one of the most important elements on the planet, and there is no other that even comes close to its versatility of uses.

Melvin Capital, one of the hedge funds that originally had short positions in GameStop, lost 53% in January. The move higher extended gains for silver and silver-related equities late last week. The iShares Silver Trust, an ETF that retail investors can easily Short selling strategies buy that seeks to track the price of silver, rose 8.1% on Monday after popping 6% last week.

I encouraged investors to remain confident, as I believed silver was on the brink of a historic bull market. Thanks again for your analysis and explanation regarding the massive amount of shorts and their upcoming dilemma. It makes me happy to watch market manipulation finally receive karma and if the big players in these shorts do suffer some big losses on silver, may perhaps be the start of the contagion that leads to my long awaited correction for the Fed manipulated SPX.

1. 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.
2. Here I will break down the details of silver’s Friday breakout and explain why a powerful silver squeeze has now officially begun.
3. M2 money supply, providing insight into whether silver is keeping pace with, outpacing, or lagging behind money supply growth.

As silver prices rise, these banks face potential billions in losses on their short positions. This could mark the end of the banking cartel’s long-running scheme to suppress silver prices. 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.

Many have also piled into the one-time-joke cryptocurrency Dogecoin, which was inspired by a viral image of a Shiba Inu dog. At its peak, Robinhood restricted trades from 50 companies, including GameStop, AMC Entertainment, BlackBerry and Nokia. Since the mid-2010s, silver has slightly lagged behind M2 growth, which, combined with other factors discussed in this piece, positions it for a strong rally. In January 2021, GameStop and AMC weren’t the only stocks experiencing major swings fueled by certain Reddit communities. A user in 14 swiss franc to norwegian krone the WallStreetBets forum posted about an attempt to create a short squeeze on silver futures.

SPOT BUYING OPPORTUNITIES

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.

Breaking

The story of silver price suppression by major financial institutions reads like a financial thriller, yet it’s documented fact rather than fiction. 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. This isn’t conspiracy theory – it’s evidenced by multiple regulatory investigations, lawsuits, and eventual settlements.

Even gold, often considered the ultimate precious metal, pales in comparison to silver’s diverse applications. Silver’s unique properties make it indispensable in numerous industries, from technology and medicine to energy and defense. The move in silver was touted by investors who are bullish on cryptocurrencies like Bitcoin, which see the new digital assets in part as replacements for traditional metals. In fact, we could make an argument that WallStreetSilver single handedly created the current drive to buy physical silver.

What To Watch For

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. A key condition for a short squeeze is the presence of unusually heavy short positioning in the asset. Another key confirmation I’ve been watching for is a breakdown in the gold-to-silver ratio, a useful indicator for assessing silver’s price trajectory. While gold reaching $3,000 might be a bit far-fetched, it’s actually quite realistic, as it’s just over a 10% increase from today’s price. Here I will break down the details of silver’s Friday breakout and explain why a powerful silver squeeze has now officially begun.

The Silver Squeeze: Understanding the Impact of Rising Prices

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. With silver decisively closing above the critical $32.50 resistance level and surging on high volume, the stage is set for a powerful rally. The technical and fundamental drivers behind silver are aligning, from the breakdown in the gold-to-silver ratio to surging demand and shrinking supply. The looming threat of a short squeeze, combined with silver’s structural deficit, suggests that the price could climb significantly higher, potentially reaching levels not seen in decades.

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. 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 and industrial needs, enormous increases in the price of silver could be on the way.