The Next Silver Squeeze: Will We Really See 100-1000% Gains?

Reddit’s silver “apes” expect 100% to 1,000% gains on their new silver push

Bullion.Directory precious metals analysis 20 July, 2021
By Peter Reagan
Financial Market Strategist at Birch Gold Group

The Wall Street Silver movement, which consists of some 122,000 people and represents one of the most active sections on the platform, has only gotten more momentum since February.

The average member of the movement is best described as an everyday person with a keen interest in personal investment and serious reservations about banks.

The group’s bottom line is to “corner the market” by buying physical silver and therefore exposing the derivatives market, which would supposedly drive prices up between 100% to 1,000%. (Remember, the Hunt brothers drove a 713% price rise in silver.)

While refiners argue that silver actually isn’t in short supply and that the broader market can’t be squeezed by consumer-grade purchases of silver bullion, there have been plenty of questions about availability in the wake of mint shortages this year.

And there are quite a few examples of why the movement has solid footing in reality.

Last year saw JPMorgan pay a $920 million settlement to U.S. authorities over charges of spoofing the silver market with hundreds of thousands of fake orders. It was hardly the first case of a high-profile banking blunder.

There is also a general view that if banks were to properly adhere to the Basel agreement, the prices of both metals would multiply several times as a lack of physical backing would be revealed.

In the absence of such adherence, however, the paper market is likely to continue downplaying silver prices for a while. Still, demand is growing on all sides.

Blackrock has been buying silver, hundreds of millions of ounces to add to its stockpile, while coin and bar buyers worldwide are expected to buy 253 million ounces this year.

As for the movement, regardless of how silver price trends, it can already boast the attention brought to some very dubious practices by Wall Street.

This article was originally published here

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