Keep in mind that Ghali’s projection of “slowing demand growth” is coming off record industrial demand, and we’ve already seen market deficits for four straight years. TD Securities senior strategist Daniel Ghali told Bloomberg that the threat of tariffs is already “accelerating the timeline to depletion” of the free-floating silver stock in London. He projects a significant supply crunch this year despite a slowdown in demand growth.

Latest from GoldSeek

• 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.
• Regardless of what ends up happening, there’s no denying that WallStreetSilver has forever changed the precious metals market.
• Get in touch with us today.Press the contact us button to reach out to us or take a look at our social media pages.
• At 182 million ounces, this year’s deficit is little changed from 2023 and still elevated by historical standards.
• Given that silver prices took out the $30 price level earlier today, the next major psychological resistance is $35 and $40.
• In order to confirm this particular scenario, silver needs to close decisively above the $50 resistance level.
• The movement also brought attention to the mechanics of the silver market, including the interplay between physical and paper markets and the potential for price discrepancies.

However, even a quick 11% increase in the price of silver during WallStreetBets’ 2021 short squeeze attempt was insufficient to trigger a genuine short squeeze. At least for now, silver price action is far too muted for anyone to convincingly call it a short squeeze. At Silver Gold Bull, our content is researched, written, edited and reviewed by a team of financial experts with decades of experience in the precious metals industry. With each piece we write, we bring our own personal experience and expertise, while combining that with today’s leading research and data.

• If you paid attention to what was happening on Reddit, though, you likely also heard of WallStreetSilver and the silver squeeze.
• A silver short squeeze is a natural market phenomenon that occurs when the price of an asset rises quickly and dramatically, so there’s nothing inherently illegal or market manipulative about it.
• In early January, the stock was trading below $25, a handsome gain of up to 1832%.
• Let me tell you why, but first, let me share a revealing story from my time at Sprott that exposed just how fragile the silver market really is.
• Ultimately, we want you to feel comfortable and informed when making investment decisions, regardless of whether that is with us or not.
• If the buying is aggressive enough, this can lead to a short squeeze, amplifying the upward momentum.
• 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.

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 https://www.forex-world.net/ in the precious metals world.

Americans to Chase Gold

The market experienced wild swings as the influx of new buyers clashed with institutional strategies. Trading volumes in silver futures soared as both speculative traders and hedgers adjusted their positions in response to the changing market dynamics. This heightened volatility not only affected silver prices but also had ripple effects across related markets, such as mining stocks and other precious metals. The dramatic price movements underscored the sensitivity of commodity markets to sudden changes in demand and the potential for retail investors to exert substantial influence under certain conditions. Silver’s Best cfd trading platform breakout on Friday marks a pivotal moment in its ongoing bull market, confirming many of the key conditions I’ve been highlighting for weeks.

The Supply Squeeze

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 upward trajectory, the potential for explosive gains has never been clearer. There is a strong chance that these banks will end up on the wrong side of the trade as this rally continues, triggering a powerful silver short squeeze. 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. Now, just imagine what will happen as silver climbs by $5, $10, $20, and beyond from this point.

Navigating the Silver Market

The French learned this lesson the hard way when silver left their country and their currency was no longer backed – leading to economic chaos. The inflation-adjusted highs from the 1970s would equate to over $200/oz today, and I believe we’ll not only test but exceed those levels. Here, I will break down the details of silver’s Friday breakout and explain why a powerful silver squeeze has now officially begun. When a trader is “long,” that means they actually own and possess a stock that they hope will go up in value, at which point they will sell. Traders can also “short” stocks, meaning that they are betting that these assets will go down in value over time.

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.

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 Luno exchange review 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.

Last week, about 920 million shares of the company traded in the U.S. alone, and the stock exploded to $483/share. In early January, the stock was trading below $25, a handsome gain of up to 1832%. 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. When the price of a stock, asset, or commodity rises especially quickly, it can trigger what’s called a short squeeze.

“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. In the long term, the Silversqueeze may lead to lasting changes in how investors approach commodity trading and perceive market dynamics.

The Silver Squeeze: Market Manipulation and the Coming Storm

He also explains why this movement is similar to past price surges, including what happened in April 2011. The silver market has always fascinated me, particularly because of its dual role as both a precious and industrial metal. What many don’t realize is that we’re heading into what could be the most significant silver bull market in history – one that could make the 1970s look like a mere preview. Let me tell you why, but first, let me share a revealing story from my time at Sprott that exposed just how fragile the silver market really is. If the London Metal Exchange (LME) had not paused and reversed trades during the short squeeze, Guangda stood to lose billions of dollars as the price of silver skyrocketed.