![]() ![]() If you annoy some hedge fund managers and old school Wall Street types, no one is going to care that much. Physical possession of silver coins and bars exposes you to a whole new set of risks, including insurance costs and the possibility of theft. You can pay for storage of your silver, or you can take possession. In the physical market, you can create demand, but it's going to take a lot of cash, and storage can be a problem. They own three times more silver contracts than they have sold short.įar form sticking it to the man, you are going to make the man a lot of money if you are able to force silver prices higher.įar from upsetting Jamie Dimon, you could end up on his Christmas card list.Īmong the largest owners of SLV are Morgan Stanley (NYSE: MS), Bank of America Corp. ![]() They won't lose a minute's sleep worrying about what the price of the SLV fund is at any given moment.Īt the same time, money managers and speculative traders are massively long silver. The rise in silver is offset by the rise in the price of the silver they own. The whole reason they hedge in the first place was to enable them to not worry about silver prices. They are hedge positions to protect them against declines and lock in a favorable price for the metal they produce. The people short silver are miners, producers, and processors of silver. ![]() When you break it down by type of account, that changes. The report shows you what type of trader is long or short various future contracts.Īt first glance, it does appear that there are large short positions. The Commodity Futures Trading Commission puts out something called the Commitment of Traders Report every week. The other problem that you have is that while it may appear that there is a large short position in silver futures and options, there really isn't. To create a short squeeze in silver, you have to manipulate not just the ETF but the physical and futures markets as well. It is impossible to create the type of squeeze we saw in GameStop. If there is excess demand, they can create shares as needed to fill that demand. and far too many investors are holding them without even knowing. ![]() If you can take sellers out of the equation and create excess demand - from short sellers and options market makers, to name a few - then you create a squeeze, and the price has to go higher.ĬRITICAL: These 19 stocks are like poison for portfolios. For every buyer, there has to be a seller. GameStop has a fixed number of shares outstanding. Why SLV Won't Be Squeezedįirst, SLV is not a stock. (NYSE: GME), and you could be risking your money on nothing more than hype. This is not going to be as easy as it was with GameStop Corp. That did cause some excitement on Monday as silver prices jumped up to over $30 for the first time in eight years.īefore you jump on board the silver bandwagon, there are a few things you need to know. Some dealers said that demand for physical silver was up as much as 10 times normal levels over the weekend. Silver did rally earlier this week as silver dealers saw supply wiped out over the weekend by a flood of buying form all over the world. Posts on the popular Reddit forum claim that this time they are going to take down the big banks, including JPMorgan Chase & Co. The minds behind the short squeeze on GameStop, which sent shares soaring over 1,500% in just a month at their peak, say a short squeeze in shares of the iShares Silver Trust (NYSEArca: SLV) is next. The GameStop crowd could be engineering a silver squeeze next. Save my name, email, and website in this browser for the next time I comment. Sign me up for the Money Morning newsletter Your email address will not be published. Or to contact Money Morning Customer Service, click here. “IT’S IMPERATIVE WE DO NOT ‘SQUEEZE’ IT.Comment on This Story Click here to cancel reply. “CITADEL IS THE 5TH LARGEST OWNER OF SLV,” a WallStreetBets user wrote Sunday, referring to the ticker symbol for iShares Silver Trust. The so-called silver squeeze has caused division on the "WallStreetBets" Reddit forum, with some users arguing that they should keep targeting GameStop shares because Citadel Securities, the electronic-trading firm owned by hedge fund billionaire Ken Griffin, is thought to benefit from a rise in the metal since it is a major holder of iShares Silver Trust. GameStop-Robinhood stock revolution: Not a secure retirement plan If it is a trap, no one can say for sure. Communications on messaging boards claim hedge funds have now become active on Reddit anonymously, attempting to drive them out of GameStop bets and into silver, but only after hedge funds had taken huge positions. Some of these smaller traders believe the hedge funds that were pillaged last week are behind the surge in silver. ![]()
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