#silversqueeze is coming, stocks could be depleted in two years TD Securities

The strength of the US dollar and US Federal Reserve interest rate changes are factors that will continue to affect the precious metal, as are geopolitical issues and supply and demand dynamics. Although Neumeyer believes that the ties that bind silver to gold need to be broken, the reality is that most of the same factors that shape the price of gold also move silver. If last week’s trading activity is anything to go by, the price of silver is likely to remain highly volatile as traders will be keeping an eye on the “Silversqueeze” hashtag in their ongoing bid to rival Wall Street’s investors. Speaking from a technical perspective, silver prices are extremely overbought.

What Is a Short Squeeze?

Those «hit lists» refer to the U.S. products Canada may target for tariffs if Trump does implement tariffs on Canadian exports, Clark said in an interview with CBC News. In his first term in 2018, Trump placed tariffs of 25 per cent on Canadian steel and 10 per cent on Canadian aluminum. Canada responded with its own retaliatory tariffs on a series of U.S. products. Please note that the availability of the products and services on the Crypto.com App is subject to jurisdictional limitations. Crypto.com may not offer certain products, features and/or services on the Crypto.com App in certain jurisdictions due to potential or actual regulatory restrictions.

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. It seems odd that one man posting a picture on X/Twitter could cause the markets to move like this, but when it comes to meme stocks, all bets are off. According to data from S3 Partners LLC, the recent rally in GameStop has cost short-sellers more than $2 billion in just two days.

The Silver Short squeeze as retaliation against Wall Street

For example, a trader might borrow 100 shares of Company XYZ at $50 per share and sell them for $50 each, receiving $5,000. If the stock price drops to $30 per share, the trader can buy back the 100 shares for $30 each, costing $3,000. After returning the borrowed shares to the broker, the trader’s profit would be $5,000 (from selling) minus $3,000 (from buying back), resulting in a $2,000 profit, excluding fees and interest. Silver mining stocks Coeur Mining and Pan American Silver surged 23.1% and 12.1% respectively on Monday. “If silver market is proven to be fraudulent, you better believe gold market will be next,” Cameron Winklevoss tweeted. The silver market is the latest flashpoint in the Reddit mania that took over Wall Street last week.

The most actively traded futures contracts for the precious metal climbed to their highest level in almost eight years Monday, extending recent gains as the Reddit-fueled buying frenzy spilled over into the commodities market. Private investor Don Hansen shared his strategies with INN for investing in precious metals, as well as a guide for building a low-risk gold and silver portfolio. While silver does have both investment and industrial demand, the global focus on gold as an investment vehicle, including countries stockpiling gold, can overshadow silver. 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. As Lin sees it silver miners have cut production in recent years as they struggled to remain profitable in the lower silver price landscape. This decline ironfx review in mine supply poses a problem for rising industrial demand for silver.

Texas proposes gold and silver-backed currencies to compete with fiat money

• CFTC Acting Chairman Rostin Behnam said in a statement Monday evening that the commission was «closely monitoring» activity in the silver markets.
• US Wholesale Inflation Hits Highest Rate in a YearUS wholesale inflation surged to its highest rate in a year in April.
• These shares are typically borrowed from the broker’s own inventory or from other clients’ accounts.
• The Fed continued these small rate hikes over the next year with the last in July 2023.

Kitco NEWS has a diverse team of journalists reporting on the economy, stock markets, commodities, cryptocurrencies, mining and metals with accuracy and objectivity. Silver Climbs to Over $28.50/ozSilver is continuing its fantastic year, up roughly 20% year to date. This rise is driven by increasing industrial demand, concerns over inflation, and renewed interest from investors seeking safe-haven assets. The value of crypto assets can increase or decrease, and you could lose all or a substantial amount of your purchase price.

Even more exciting is the fact that silver’s logarithmic chart, dating back to the 1960s, reveals a cup-and-handle pattern, indicating the potential for silver to reach several hundred dollars per ounce during this bull market. In order to confirm this particular scenario, silver needs to close decisively above the $50 resistance level. “There’s far more cash trying to chase physical assets because we’re suffering the bite of inflation, and supply in all of these markets is becoming extraordinarily thin,” explained Eric Sepanek. Watch his full analysis of the forces about to set off a physical silver rally on AZTV’s Mike Broomhead show. Short squeezes are a complex phenomenon that can significantly impact Bitcoin’s price and the broader cryptocurrency market.

If you don’t want to worry about market volatility, however, you’ll want to make sure you’re buying the right silver products. Short squeezes in the cryptocurrency market operate similarly to those in traditional markets. Cryptocurrencies like Bitcoin can be shorted on various exchanges, and when there is a significant short interest, the potential for a short squeeze arises. Before we get into the short squeeze, we must first understand short selling, also known simply as ‘shorting’, which is a strategy used by traders who believe that the price of a cryptocurrency limefx or stock will decline. The silver discussion on Reddit was not all in favor of buying the metal and related equities, with some users arguing that the «silver squeeze» was an attempt to distract from the trading in GameStop and others.

The hashtag «Silversqueeze» is top trending on social media start careers: the different types of developer jobs channels, including Twitter and Reddit, and retail traders are buying silver like there is no tomorrow. Silver crossed above the $30 mark earlier today, and silver ETFs experienced a massive inflow on Friday. However, reddit traders need to understand that the silver market is much more liquid than individual stocks like GameStop GME , AMC and Blackberry, which caused real pain for some prominent hedge funds last week. As if the technical outlook weren’t already bullish enough, silver’s fundamentals are just as compelling.

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. Additionally, one of the most major uses of silver is in the industrial world. And while WallStreetSilver may focus on overcoming price manipulation, increased sales of electronics mean the demand will rise regardless.

Contact us now at email protected to find out more about buying and storing silver bars and coins in a secure and private manner. These individual investors are characterized by the desire for high gains and the willingness to take on a high degree of risk. Many hold a grudge against Wall Street, due to its role in the 2008 financial crisis, and are eager to beat the professional investors at their own game.

This was revealed in an emotional open letter(Link), which described one trader’s childhood experiences during those rough years and helped galvanize the group. Scrolling through the many threads in the Reddit group reveals what one might expect from any online community. 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.

They saw this as an opportunity to challenge and potentially expose this manipulation. When short interest in GameStop rose to 140% of the available shares in January 2021, traders on the “WallStreetBets” Reddit community took note. Thousands piled into the stock igniting a short squeeze, where short sellers were forced to buy shares at higher prices to cover their positions, driving the price up even further. Buying physical silver or shares of silver stocks is a way to be involved in the so-called «Silver Squeeze 2.0.» When more investors buy a stock or commodity, short-sellers usually need to sell shares to cover their losses.