Silver Short Squeeze to 1000

[Thogey]

This reminds me of the Hunt brothers scheme. There is a point when you should sell here.
Have you seen this? what do you think?

https://www.marketwatch.com/story/silve ... 1611855032

[68Camaro]

That would be interesting. I have some sprott physical silver fund that I would exit at some point if that happened. My exit point would need to be north of $50 and I probably would sell at a variety of increasing exit points as the price rose.

Not sure if I would sell any personal physical silver - can't say never. Would depend on the details. I suspect people would be unloading physical is mass amounts at some point and there could be an odd contango event with a backwards prices disconnect between physical and eshares, where physical is cheaper because people are unloading faster than processors can refine it into good delivery bars to back up the eshares.

[Market Harmony]

I'm gonna need some help

[IdahoCopper]

Here is another article, it includes a lot of detail:

https://www.zerohedge.com/markets/reddi ... eze-silver

[68Camaro]

Interesting story. We'll see if they execute. Hopefully it's not a q anon style misinformation feed.

[IdahoCopper]

I see it as being a GSR play. If they stay coordinated, they will spike silver. It may or may not last.

I would look at dumping silver to buy gold maybe starting at 25:1.

I welcome other's input on that idea.

[Changechecker]

I just checked jm bullion and apmex. Both have bumped up premiums, delayed delivery and have many out of stock. Im thinking people are front running the potential SLV play.
Would you be a buyer now in anticipation of a bump up in physical silver this week??
There isn't much physical available without premiums but if they short it, the prices of physical should bump up. Could be a nice profit without too much downside. Thoughts??

[Changechecker]

Idaho,
My thought is that silver would drag gold up. Eventually silver could break away from gold because of the SLV shorting and reduce the spread. At 25 to 1 i would be a seller of my limited physical. I would probably take profit to pay down debt and prepare for an eventual return to normalcy (I don't see JP Morgan willing to jeopardize their stockpile to ride this out). I know there are smarter members who hopefully can share thoughts as I think this could become a rare opportunity for another chance to see $50.00 silver again.

[AGCoinHunter]

I'm going to be watching SLV on opening Monday, got some cash lined up to make an entry point. Would love to see silver shoot back up to the 40s again. A nice short squeeze may push it up.

[IdahoCopper]

Idaho,
My thought is that silver would drag gold up. Eventually silver could break away from gold because of the SLV shorting and reduce the spread. At 25 to 1 i would be a seller of my limited physical. I would probably take profit to pay down debt and prepare for an eventual return to normalcy (I don't see JP Morgan willing to jeopardize their stockpile to ride this out). I know there are smarter members who hopefully can share thoughts as I think this could become a rare opportunity for another chance to see $50.00 silver again.

I think you a right, to some extent that gold will be drug up. I think if the squeeze lasts a couple months, gold will decouple. I also think $50/oz is just the front door to the casino. They are talking $1,000/oz, which to me is far-fetched. If gold only rises to $3,500/oz and silver makes it to $500, the GSR on that is 7:1. I rather doubt a GSR that low would last very long, a few hours to a half day .... maybe.

[Changechecker]

Idaho, if anything along this scenario plays out i would wonder what market there would be for physical. During any first leg up(say to $50.) There might be some retail buyers probably mostly for small denomination silver. Anything north of $50.00 i think the physical market would struggle. I would imagine the smart money would move to the exchanges where the real gains could be realized. Im only guessing here but I don't see "joe six pack" buying silver ounces for $50.-$60. retail. Again I don't know enough to speculate what would happen i just gauge physical silver sales based on foot traffic and availability at retail prices.

[Recyclersteve]

If silver goes above $30.50 to $31ish and stays above the $30 figure for at least two days, I expect a pretty quick run to $35-40.

I had a post last year (around mid-July) (not sure if on this site and/or on the BS site) where I said the same thing when silver broke through $20ish. I said I thought it had fairly smooth sailing for a quick run to $30 and it almost got there in about 6 weeks or so.

A target of $1,000 is clearly ridiculous IMHO, although I thought GME was ridiculous at $50. Thankfully I didn't short it. I did buy a July $110 put on Wednesday or Thursday (forget which) when the stock was around $270. Bot the put for just over $60- sold it the next day for $71. Made $1,000 in one day for a fairly conservative investment, all things considered. I wouldn't dare go long or short the stock. You could get clobbered either way.

[Lemon Thrower]

Have you seen this? what do you think?

https://www.marketwatch.com/story/silve ... 1611855032

I'm going to go out on a limb and predict silver will not hit $1000.

It may have a good year and double, but even $100 is unlikely this year.

The folks manipulating it work for the Fed and U.S. Treasury. As we have seen, the same rules don't apply to them.

If all these folks on reddit but SLV, then the trust will just write more futures contracts and put that paper in new SLV shares.

If they buy PSLV, PSLV will go in the market and buy 1000 oz silver bricks, so that might have an effect on the market.

But the other side will short the futures and manipulate the price. How much patience do the WSBer have if the thing doesn't move or moves down? This is not an overleveraged hedge fund on the other side of the trade, its the guys that run the printing press.

I do expect premiums for physical to increase, even junk.

[IdahoCopper]

I think the key thing to keep in mind when analyzing this scenario is something completely alien to investing.

The WSB crowd does not have "profit" as their first order goal. Let that sink in. It is such an alien concept to what everyone here "knows" about investing/stacking PMs. All our vast, combined experience solidly rests, and was built upon the foundation of profit being the first order goal. What you "know" in your gut may have nothing to do with the fundamentals of what is about to transpire.

Yes, the WSB boys will be glad to get profit and sad to loose it all.

However, they as an army, are in it for the Luzs, for the payback, for the destruction they can wreak on Wall Street and perhaps the entire system.

Interesting times are directly ahead. Where there is chaos, there is opportunity.

[AGCoinHunter]

Here we go.

https://www.zerohedge.com/markets/reddi ... eze-silver

[franklin]

Where there is chaos, there is opportunity.

I love it!

[Thogey]

ASEs are selling for 40 shipped on ebay this morning.

[Tourney64]

I saw some ASE’s selling for $50 shipped last night.

[Thogey]

The issue is now being reported to the masses on fox.
https://www.foxbusiness.com/markets/us- ... feb-1-2021

[68Camaro]

The issue is now being reported to the masses on fox.
https://www.foxbusiness.com/markets/us- ... feb-1-2021

And essentially at the same time as that report was a big dump that briefly took the price from around $29 to below 28; it is now climbing back out of that dive as I type this. Don't think that dump at same time as the report was a coincidence.

[AdamsSamoa]

I do not think that it is Reddit traders.... It seems that their message is this is a false flag. MSM trying to help out the Game Stop Shorts..

[natsb88]

I do not think that it is Reddit traders.... It seems that their message is this is a false flag. MSM trying to help out the Game Stop Shorts..

Yeah, WallStreetBets is mostly upvoting posts that say silver is an orchestrated distraction to divert money away from GME. The idea to squeeze silver came from new or dormant accounts, was immediately publicized by the media, and Citadel is long silver. Kind of suspicious...

[AdamsSamoa]

Kind of suspicious...

Yes Sir...

[Changechecker]

I just came from a local shop and he deals mostly in slabbed and high end coins. He buys scrap and 90% but sells wholesale to big dealers. I have a good relationship with him so was able to pick up a small amount. He mentioned that a few big dealers have contacted him looking. They are offering premiums to him.

[Thogey]

silver short squeeze is now the headline on drudge.