11/10/2022 0 Comments Silver short squeeze![]() Trading volume in the SLV ETF on Friday was 10 times higher than in the gold ETF "GLD" – this has never been achieved before in history:Ībout $943 million flowed into the SLV ETF on Friday, representing about 38 million ounces of silver and possibly triggering a sharp silver price spike during the coming days and weeks: ![]() ETF "SLV" recorded an inflow of almost $1 billion on Friday – almost twice as much as the previous record from 2013: ![]() The extent of the biggest buying spree in the history of the silver market is also indicated by the following charts. In Europe, this buying frenzy might also take on devastating features next week and major supply bottlenecks may occur. Thanks to the extremely strong increase in demand for physical silver we are witnessing at the very moment, a serious problem is now looming: Virtually all online precious metal dealers in North America can no longer deliver most silver products and are sold out, as the following pictures show:Īt other major precious metal dealers – like Kitco, APMEX or MoneyMetals – the same picture: Mostly sold out! But one thing is already crystal-ball clear: It was already extremely difficult to get hold of physical silver last year due to supply bottlenecks worldwide (caused by COVID-19). It remains to be seen whether the community will be successful again and this time triggering a short squeeze in silver. The goal of the #SilverSqueeze community is to trigger a short squeeze due to the huge short positions in the silver market in order to force the shorters to cover their positions.Īs the chart below shows, silver is the most heavily shorted commodity market (at least within this selection): The 8 largest traders have such big short positions that it would take hundreds of million ounces of silver – nearly half of silver's annual world production – to cover: The reason? Silver is known to be one of the most heavily shorted markets in the world! Add to that the fact that at the end of last year it became known, or rather officially confirmed, that JPMorgan manipulated the precious metals markets and was ordered to pay a fine of $920 million. shorters were forced to close their short positions and cover them by buying shares in the open market).Īnd now the next attack of the WallstreetBets community is underway: This time, however, it's not a stock, but silver. Before, Gamestop was one of the most heavily shorted stocks in the U.S., the reason why the community wanted to trigger a so-called "short squeeze" – and had great success so far (i.e. But many of his followers didn't buy stock in the open market, they bought leveraged call options that made them a lot more money. In early January, the stock was trading below $25, a handsome gain of up to 1832%. alone, and the stock exploded to $483/share. Last week, about 920 million shares of the company traded in the U.S. The origin of the biggest silver buying frenzy is the WallstreetBets community from the social news aggregator Reddit and its user WallstreetBets causing a worldwide sensation during this past week, when he and his community managed to trigger a huge short squeeze in the Gamestop Corp. stock. A sharp rise in silver prices could be imminent. However, this is taking on dramatic, almost biblical proportions and supply shortages are already being experienced around the world. Under the hashtag #SilverSqueeze, social media platforms such as Twitter, Facebook or LinkedIn are running so hot that more and more people are becoming aware of silver and are actually also buying extremely large quantities of physical silver. What makes this silver rush so special is that there are not just investors who have been buying silver for many years and are now stacking up, but also many rich young guns ("millennials") who have never heard of silver as an investment before, let alone had ever bought silver before. Investors worldwide are buying virtually all the available silver they can get. ![]() What has happened over the last few days, and especially over the weekend, is unprecedented in history. By Stephan Bogner (CEO of Elementum International AG) on January 31, 2021 ![]()
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