“I believe strongly that they’ll gravitate toward the real asset class, as there’s nothing superior for a highly inflationary depression than the silver market,” he stated. Still, he believes that the real value lies in precious metals, particularly in silver, and the recent attempted silver squeeze represents an important milestone: more awareness. “But it’s coming, whether it happens now or whether it happens later, the inevitability of the fact is that all fiat fails.”Ī testament to the crippling value of fiat currencies, said Morgan, was the recent increased interest in alternative currencies, such as cryptocurrencies like Bitcoin. “Right now, there’s a lot of pressure on silver, and we haven’t even seen the end of the dollar in the near term,” he continued. Known in the industry as the silver guru, he noted that bullion dealers had already seen an intensified amount of buying pressure in recent weeks.
“The big picture that I have stressed from day one is that we are getting near the end of the great currency reset when this currency crisis manifests further, people are going to run to gold and sprint to the silver market, and that will overwhelm it.” “Whether the silver squeeze continues or not now, it will in the future,” he said. Just one week after a subreddit group, WallStreetBets, showed the world the power in numbers to move financial markets, the precious metals market received a renewed focus.ĭavid Morgan, the precious metals aficionado and ambassador for the LODE Project, spoke to LODEpay Media to discuss silver’s recent price surge. Money managers have had a net long position on the metal since mid-2019, according to data from the Commodity Futures Trading Commission, Bloomberg reported.On the first day of February, the silver price reached heights it hadn’t seen in eight years, climbing just above the $30 an ounce mark. Hedge funds and other investors who have a net long position in silver futures are positioned to benefit from a rise in prices. It's unclear how a short squeeze in silver would affect hedge funds, compared with the impact the short squeeze in stocks like GameStop or AMC had on them. The silver squeeze may be short-lived, some experts say. The iShares Silver Trust, a BlackRock exchange-traded fund tracking the metal, rose by 7% on Monday. It reported record net inflows on Friday of $944 million. “IT’S IMPERATIVE WE DO NOT ‘SQUEEZE’ IT.” “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. “Why not squeeze $SLV to real physical price,” the user added, referring to the iShares Silver Trust, the world's largest silver exchange-traded fund.īut the rush into silver futures has created confusion, with some retail traders on Reddit calling the surge in commodity prices a “false flag.” “Any short squeeze in silver paper shorts would be EPIC.” “Silver Bullion Market is one of the most manipulated on earth,” Reddit user RocketBoomGo wrote. The move into silver gained traction Thursday after posts on the “Wall Street Bets” Reddit forum urged investors to pile into physical silver, encouraging them to push the price of the metal up to $1,000.
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