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. As a long-time believer in hard assets such as gold and silver, that is a thesis that I can get excited about (unlike GameStop, which is extremely overvalued). The idea behind the “silver squeeze” thesis is that big banks and hedge funds currently have massive short positions in the silver market for the purpose of suppressing the price of the precious metal. According to this theory, if enough small investors buy into the silver market, the big banks and hedge funds will be forced to cover or buy back their short positions, which would send the price of silver soaring. Many analysts believe that bullion banks like JPMorgan and UBS are engaging in aggressive naked short-selling—dumping silver futures without actually holding the physical silver to back them up—in an effort to manipulate silver prices downward.

Is silver better than gold?

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. As silver continues its finmax broker upward trajectory, the potential for explosive gains has never been clearer.

What most people don’t realize is that a similar “raid” already took place in history. During the inflationary period in the 1970s, William Hunt, Lamar Hunt and Nelson Hunt set out to corner the market on silver. They purchased both physical assets and paper silver (e.g. futures contracts). There’s a thought among those in the community that market manipulation has purposefully kept the price of silver down. And while this may seem like an over-the-top claim, it’s hard to deny the facts of what happened on what has become known as the “Silver Raid Day” in February 2021. For a while in February, silver was the talk of the town in the precious metals world.

Silver Squeeze 2.0 and Wall Street Silver, Explained

Internet searches related to buying gold had long dominated similar searches for silver. One look at Google Trends, though, shows that silver overshadowed the yellow metal for an entire week. The long-term gold-to-silver ratio chart reveals that silver is currently significantly undervalued compared to gold, indicating that silver has much more room to rise in order to catch up. If the ratio were to revert to its historical average of 52.8 since 1915, even without any increase in gold’s price, silver would be valued at a respectable $51.55 per ounce. 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.

How High Can Prices Go?

If many investors are shorting a stock and its price starts to rise, they may rush to buy back shares to cover their positions, causing the price to spike further and exacerbating losses. In the cryptocurrency market, just as in the traditional financial (TradFi) markets, trading strategies can significantly impact asset prices and investor behaviour. Many experts believe that silver is undervalued at under US$30 compared to fellow currency metal gold.

In his 2024 PDAC interview, Neumeyer once again highlighted this sizable imbalance in the silver’s supply-demand picture. The deficit in 2024 looks like it’s gonna be bigger than 2023, and why is that? Because miners aren’t producing enough silver for the needs of the human race,” he said. “I’m guessing the mining sector produced something in the order of 800, maybe 825 million ounces in 2022,” Neumeyer said when giving a Q overview for his company.

• Your purchase is immediately allocated to you, secured in the vault, and available to sell almost immediately if markets move.
• For his part, Chen Lin of Lin Asset Management told INN in June that he thinks US$50 silver is a possibility once the market finally begins to factor in the growing supply-demand gap.
• For a while in February, silver was the talk of the town in the precious metals world.

Canada could alpari forex broker review threaten to slap tariffs on U.S. agriculture, such as dairy products and field crops, which is “very sensitive from a political standpoint for the U.S,” he said. A senior government source told CBC News that the main focus right now is maintaining lines of communication with Trump’s inner circle and stakeholders that may have influence. But the source said that at the moment, it doesn’t seem like there’s a silver bullet to end the tariff threat and that it will be a long grind. Freeland also acknowledged that the round of tariffs under Trump was a challenging time for Canadians. Trump has threatened to impose 25 per cent tariffs on Canadian and Mexican goods unless both governments tighten their borders to prevent the flow of drugs like fentanyl and illegal migrants into the U.S.

But his threat has raised questions as to whether Canada has any kind of leverage to squeeze the U.S. and prevent such tariff action. The purpose of this website is solely to display information regarding the products and services available on the Crypto.com App. SD Bullion warned that “due to unprecedented silver demand” it would also be unable to accept orders until Sunday evening. “The #silversqueeze is a rage against the machine,” Tyler Winklevoss tweeted. The Winklevoss twins, who famously sued Facebook’s Mark Zuckerberg and were early backers of bitcoin, both tweeted support for the push by WallStreetBets into silver.

“Once we get to US$30 we have to reevaluate. But I do think again, whether we get a small pullback or not, we’re destined to go to US$30. And down the line if gold goes to US$3,000 you’re going to see silver go higher than US$30 as well.” “Once silver gets above US$33 and it stays there for three or four days — or better yet, even two or three weeks — there’s not much holding it back to hit US$50 again,” he said at the time. In 2024, the silver price has finally broken through the long anticipated US$30 mark, a catalyst experts have discussed heavily in recent years. After spending the latter half of the 2010s in the teens, the 2020s have seen silver largely hold above US$20. In August 2020, the price of silver reached nearly US$28.50 before pulling back again, and moved back up near those heights in February 2021. The price of silver saw a 2022 high point of US$26.46 in February, and passed US$26 again in both May and November 2023.

When assessing a crypto asset, it’s essential for you to do your research and due diligence to make the best possible judgement, as any purchases shall be your sole responsibility. Bitcoin has experienced several notable short squeezes, often triggered by a combination of market sentiment shifts and technical factors. The potential loss in short selling is theoretically unlimited because a stock’s price can rise indefinitely, whereas the maximum profit is capped since the stock can only fall to zero. Additionally, they may use short selling to hedge other positions in their portfolio.

Many Wall Street insiders even bet that this will take place in the near future. Regardless of what ends up happening, there’s no denying that WallStreetSilver has forever changed the precious metals market. WallStreetSilver is right about short selling having a major effect on the price of any asset. After all, many of those “short” on silver are the same ones who produce the metal for retail use. That’s because the precious metal is heavily review trade your way to financial freedom shorted – meaning there’s a large number of futures contracts predicting the price will drop. The belief that the physical supply of silver was limited compared to the vast amounts of paper silver (silver derivatives) traded in the market.