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. I expect a breakout in the index is still forthcoming, which will further validate silver’s rally and likely provide additional momentum to its current upward trajectory. The index didn’t break out primarily due to copper’s weakness over the past few weeks. However, with a rebound in copper likely soon (as I’ll explain shortly), this should help the index break out in the near future. The price of copper is often an underappreciated factor in silver’s performance, as I recently explained. Although the Synthetic Silver Price daily treasury yield curve rates 2020 Index didn’t break out on Friday, it still posted a solid 1.21% gain.
Live Spot Gold
Regardless of what ends up happening, there’s no denying that WallStreetSilver has forever changed the precious metals market. However, if that stock’s price increases drastically, it can cause short sellers to lose money by having to buy back at the higher prices to minimize losses. The silver squeeze is caused by investors cardano price ada price index chart and info buying up silver in an attempt to drive up prices and “squeezing” the investors.
WallStreetSilver and the Silver Squeeze: What You Need to Know
And while WallStreetSilver may focus on overcoming price manipulation, increased sales of electronics mean the demand will rise regardless. People can argue over whether the price of silver will skyrocket, but it’s hard to deny that market manipulation exists. Even if there were no underlying “bad acts” on February 2, 2021, the Hunt brothers have already proven that the government and heads of exchanges can change rules when they want to. While this high level of interest has waned a bit, people have remain focused on WallStreetSilver, the Silver Raid and the potential impending silver squeeze.
As the price of silver continues to rise and the potential for a silver squeeze looms, investors should approach the market with caution and diligence. Conducting thorough research, diversifying portfolios, and maintaining a long-term perspective are essential strategies for navigating the silver market and capitalizing on opportunities while mitigating risks. For now, I am watching and waiting to see if silver can close decisively above $30. I’ve been very Best etf to day trade optimistic about the outlook for safe-haven assets like gold and silver. 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.
Euro Silver Price
Basel III could accelerate the efforts of Wall Street Silver, the Reddit group behind the Silver Squeeze. The Silver Squeeze is a concerted effort by these investors to stop the big bullion banks’ silver market manipulation. By taking delivery on silver futures and purchasing large quantities of physical silver. A silver squeeze occurs when demand for physical silver outstrips available supply, leading to shortages and driving prices higher. This phenomenon can be exacerbated by the presence of short sellers in the market, who bet on declining prices by borrowing and selling silver they do not own with the intention of buying it back at a lower price. If a silver squeeze occurs, short sellers may face difficulties covering their positions, leading to rapid price increases as they rush to buy back silver to fulfill their obligations.
The Silver Squeeze: Understanding the Impact of Rising Prices
- Another way to assess whether silver is undervalued or overvalued is by comparing it to various money supply measures.
- Thanks again for your analysis and explanation regarding the massive amount of shorts and their upcoming dilemma.
- 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.
- And even if you were to ignore all these facts, it’s impossible to overlook the dwindling supply of silver.
- Given the current size of their short position, bullion banks face nearly $200 million in losses for every dollar increase in the price of silver.
“If silver market is proven to be fraudulent, you better believe gold market will be next,” Cameron Winklevoss tweeted. Although the Synthetic Silver Price Index didn’t break out on Friday, it still posted a solid 1.21% gain. There were more than 4 million shares of the ETFMG Prime Junior Silver Miners ETF traded on Thursday and Friday, compared with a three-month average volume of 1.56 million, according to Stephen Gardner, the firm’s director of sales. The forum had multiple active threads dedicated to silver on Sunday night, and the phrase “#silversqueeze” was also trending on Twitter.
Since 2003, SilverSeek.com has served millions of readers with the latest silver news and information. Meanwhile, growing global uncertainty has reignited interest in precious metals as a safe haven. Central banks continue their experiments with unprecedented monetary policy, while geopolitical tensions drive nations and individuals alike to seek tangible assets.