The Silver Short Squeeze: What Is It All About?

Gold Hits Three-Week HighGold prices reached a three-week high on Wednesday, driven by a weaker dollar and lower yields. The U.S. consumer price index rose less than expected in April, increasing the likelihood of Federal Reserve interest rate cuts. Earlier this week, shares of GameStop (GME) and AMC Entertainment (AMC) surged once again, echoing the frenzy of 2021. Putting such products on official notice as potential targets for tariffs will prompt U.S. suppliers and their lobbyists and lawyers in Washington to “go bananas,” Clark said.

Move over, GameStop: Reddit traders are targeting silver now

The immediate impact of a short squeeze on Bitcoin is a sharp and often rapid increase in its price. This can result in significant volatility, attracting more traders into the market, further amplifying price movements. That follows a 6% rally last week when some posts on the WallStreetBets group on Reddit called for betting on silver as a way to hurt big banks they believe are artificially suppressing prices. Some of these smaller traders believe the hedge funds that were pillaged last week are behind the surge in silver.

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It’s unclear how a short squeeze in silver would affect hedge funds, compared with the impact the short squeeze in stocks like GameStop or AMC had on them. Hedge funds and other investors who have a net long position in silver futures are positioned to benefit from a rise in fortfs review prices. Money managers have had a net long position on the metal since mid-2019, according to data from the Commodity Futures Trading Commission, Bloomberg reported. Reddit retail traders have once again taken a position against hedge funds and money managers.

• Notably, silver priced in euros often respects round numbers like €26, €27, and €28, frequently establishing key support and resistance levels at these points.
• The iShares Silver Trust, a BlackRock exchange-traded fund tracking the metal, rose by 7% on Monday.
• Unfortunately, the silver market is quite opaque, and we have no way of knowing whether these allegations are true or not.
• Basel III could accelerate the efforts of Wall Street Silver, the Reddit group behind the Silver Squeeze.
• “Silver also faced additional pressure from Donald Trump’s election victory, as markets anticipated inflationary policies and a more aggressive stance toward China, which could dampen demand for the metal.”

Silver jumps 8%, touches 8 year high as Reddit traders try their squeeze play with the metal

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. The process begins with the trader borrowing shares of a stock from a broker. These shares are typically borrowed from the broker’s own inventory or from other clients’ accounts.

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. I stated that this event would help confirm a close above $32.50, greatly review: financial modeling for equity research 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. On Friday, silver finally broke through the €30 level with such momentum that it even closed above €31, signaling the strong potential for further gains in the coming week.

There’s a significant distance for silver to go before it reaches the success Neumeyer has boldly predicted. In fact, in order for the precious metal to jump to the US$100 mark, its price would have to increase from its current value by around 350 percent. Since September, silver has held above US$30, and on October 22 the silver price reached a 12-year high when it came close to breaking through the US$35 mark. 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.

Rotbart & Co. are bullish on silver in the medium to long term and believe it has much more room for further price appreciation due to the above reasons and to its role as a safe-haven asset. 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. Making investment choices is a personal decision, but it’s hard to overlook what’s happened in recent months.

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Speaking to INN in early September, Soloway intimated that silver could fall as low as US$24 in the near-term before heading back up, representing a buying opportunity. Speaking with INN at PDAC in March, Krauth said he sees a serious secondary silver supply shortfall emerging over the next 18 months to two years, which will cause the sector to “wake up in a big way.” This move into digital assets by such a historically significant financial entity suggests a notable shift in how these assets are perceived by some of the world’s most influential financial players. The Rothschild family, with a legacy of influence in banking, has been pivotal in controlling the world’s money supply for centuries.

Copper’s recent decline has weighed on silver, but there is a strong likelihood that it will find support around the $4.25 level and bounce from there. Bitcoin, as the most prominent cryptocurrency, often experiences significant trading volumes and interest from Forex trading for beginners both retail and institutional investors. CFTC Acting Chairman Rostin Behnam said in a statement Monday evening that the commission was “closely monitoring” activity in the silver markets. Silver futures rose 8% to at $29.06 an ounce, marking the largest one-day pop in silver on NYMEX since at least 2013.