The silver lining
Silver received an unprecedented amount of attention this week; particularly on Sunday when the futures market opened through most of Monday ( February 1st, 2021), as many believed the Reddit Groupies had enough buying power to move the silver market like they’ve managed to do with GameStop. No-one stopped to think that GameStop was a small publicly-traded company with a small market cap and nearing bankruptcy, whereas, Slv is at a low in my opinion when you look at comex reports and the amount of physical demand at the moment.
One big misconception in the whole silver saga last week was that the Reddit community was united in the call. Most of Reddit posts from this week warned against buying into silver because it was a distraction from its original GameStop play. Let me show you why silver doesn’t need help from the Robin Hood loyalists who are not prepared for what’s to come nor are the Reddit groupies, who showed early last week that they may be able to cause emotional plays, but that fundamentals will always beat the pure athletic ability
So, let’s take a look at why the silver squeeze didn’t happen and why prices fell after briefly hitting above $30 an ounce.
First, the main issue has been that the silver market is more liquid, which makes it very different from plays like GameStop.
Next, the sheer size of the silver market is another big obstacle. The Wall Street Bets community even ended up taking down the famous post titled ‘The biggest short squeeze in the world is in SLV,’ which seemed to have triggered the whole move into silver.
Yet, analysts remain confident that silver will reach the 30 dollar mark and move closer to $50 this year. As to why? Supportive macro forces; including industrial demand fueled by Biden’s move towards green technology as well as silver’s safe-haven properties.
Put all that into play, in addition to all the new investor attention, it’s a no brainer that Silver is bound to bring more people into the silver market. It has been lagging behind gold for some time. This week we’ll start seeing slight moves higher, as the supply chain is extremely low for the amount of demand we’re seeing, and most companies are charging 8-12dollars an oz. on premiums. Don’t miss the boat waiting for a better opportunity, more than likely there won’t be another one. Invest with a business that knows the news that matters. Invest in Gold, Use a Pro. USE GoldPro.