Jesse Colombo is a financial analyst and investor writing on macro-economics and precious metals markets. Recognized by The Times of London, he has built a reputation for warning about economic bubbles and future financial crises. An advocate for free markets and sound money, Colombo was also named one of LinkedIn’s Top Voices in Economy & Finance. Silver prices recorded two consecutive https://www.forex-world.net/ weeks of gains on Friday, following two back-to-back weeks of losses.
Rickards: Here’s Where Gold Will Be in 2026
Silver’s breakout on Friday marks a pivotal moment in its ongoing bull market, confirming many of the key conditions I’ve been highlighting for weeks. With silver decisively closing above the critical $32.50 resistance level and surging on high volume, the stage is set for a powerful rally. 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 Banking Cartel’s Silver Scheme: Decades of Price Suppression
- Gold, a major driver of silver prices, is generating a strong tailwind for silver after breaking through two key resistance levels since September.
- Gamestop and AMC certainly dominated news in the investing world during the first half of 2021.
- Institutional investors and market analysts were forced to take notice of the retail investor wave, leading to increased scrutiny of short-selling practices and the role of large financial institutions in commodity markets.
- Silver is different in many ways from individual stocks like GameStop, AMC, Blackberry and many more.
- Silver has long been prized for its intrinsic value and diverse range of industrial and investment applications.
This doesn’t mean manipulation isn’t taking place, though, and the saga of the Hunt brothers proves this is something that can happen. And even if you were to ignore all these facts, it’s impossible to overlook the dwindling supply of silver. Because of these decreases, many people called it history’s “greatest theft in the silver market.” The raid that found its roots in WallStreetSilver intended to push back against price manipulation. 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.
A user in the WallStreetBets forum posted about an attempt to create a short squeeze on silver futures. Based on projections, industrial silver demand set a record last year of over 700 million ounces. The combination of surging demand and the modest increase in supply will result in a projected physical deficit in 2024 for the fourth consecutive year. At 182 million ounces, this year’s deficit is little changed from 2023 and still elevated by historical standards. Nonetheless, it would be unwise to underestimate the purchasing power of retail investors, and the idea of this was clearly demonstrated last week. The task of a short squeeze may be a difficult one, but the fact is that hedge funds are against the ropes while retail traders are throwing the big hooks.
- The coming silver squeeze will likely make our previous delivery issues look minor in comparison.
- Based on projections, industrial silver demand set a record last year of over 700 million ounces.
- Contrary to the rumblings of some analysts in the precious metals space, there is little reason to suspect that we are currently experiencing a silver short squeeze.
- In the long term, the Silversqueeze may lead to lasting changes in how investors approach commodity trading and perceive market dynamics.
- Every year, analysts who are bullish on the price of silver sound the alarm that a silver short squeeze may be happening and that prices for the precious metal may start to rise.
Factors Driving Rising Prices
Gold, a major driver of silver prices, is generating a strong tailwind for silver after breaking through two key resistance levels since September. By every measure, gold is in a confirmed uptrend, and I believe it’s on track to reach $3,000 in the near future. While gold reaching $3,000 might a bit far-fetched, it’s actually quite realistic, as it’s just over a 10% increase from Der die das chart today’s price.
The Modern Silver Market
Silver’s unique properties make it indispensable in numerous industries, from technology and medicine to energy and defense. CPM Group continues to demonstrate the economic value and financial worth ofsuperior research, information, and analysis. Our research is based onmicro-economic analysis of the individual components of each commodity market,wedded with a top-down macro-economic analysis of the global trends affectingthese markets. We apply the results of that analysis to our research,consulting, and advisory services. He also looks at how gold and silver flows between London and New York follow arbitrage patterns, and do not signal a shortage.
Just like a trader who is long on a stock loses money in proportion to how much that stock loses value, short traders lose money when a stock appreciates, or becomes more valuable. Short traders can sometimes lose even more money than traders who are long on an asset, since stocks have a floor ($0) but no definitive ceiling. 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. In fact, we could make an argument that WallStreetSilver single handedly created the current drive to buy physical silver. Buying during the pandemic certainly played a big role, but it wasn’t until Reddit investors jumped in that the sale of bullion jumped over 250 percent. Some of the biggest recent happenings in the investment world have arisen thanks to users of the Reddit website and app.
The Supply Squeeze
In a sense, the plan was successful; the stock of iShares Silver Trust (SLV) rose to a nine-year high by the end of January 2021. In London’s metals exchange, silver gained nearly 11% by the beginning of February. In recent months, the price of silver has been on an upward trajectory, capturing the attention of investors and market observers alike. Behind this surge lies the potential for a phenomenon known as the “silver squeeze,” where increased demand from investors places pressure on short sellers and drives prices higher. In this blog post, we explore the dynamics of the silver market, the factors contributing to rising prices, and the implications of a potential silver squeeze for investors. The reality paxful review is over many decades bullion banks have been caught repeatedly manipulating commodity markets.