I love this story so much!
If you thought the GameStop story was awesome, you ain’t seen nothing yet!
If you don’t know that story or don’t understand it, basically a bunch of average Americans banded together online organizing in a Reddit group called WallStreetBets to buy GameStop stock.
Because it was being heavily (and perhaps illegally) aggressively shorted by hedge funds in an attempt to bankrupt the company.
Then thousands of Americans jumped in, bought the stock together, and forced what’s know as a short squeeze….creating perhaps the biggest short squeeze I have ever seen in my life.
The result was hedge funds losing multiple billions of dollars!
I have a full write up here if you want to learn more.
But here’s the deal….if you thought that was awesome, that was basically only the appetizer to the main course.
The big play is doing the same thing in the silver market.
For decades, the big banks and the elites have manipulated the silver market to keep the price low.
Many believe this manipulation is highly illegal.
JP Morgan is the lead rigger of the market, according to some reports, and stands to lose multiple billions if a short squeeze like GameStop happens in the silver market.
In fact, some are saying it would be so disastrous it could maybe take down the entire financial system:
Lmaooo silver is also heavily manipulated and shorted. The only this if a short squeeze happens with silver it might cause serious problems for the banking system
— post scarcity is cool ig (@ConnorKimball2) January 28, 2021
Silver is probably the most shorted, (using naked-shorts) security/PM in the world
The “Crash JP Morgan, Buy Silver” campaign of 2010 drove the price from $15 to $50 (without Robinhood) #WSB/Reddit crowd could probably realize a 15x with a short-squeeze now @wallstreetbets pic.twitter.com/B1P7bl7gl0
— Max Keiser (@maxkeiser) January 27, 2021
And that’s not an exaggeration, it’s very possible.
Folks, we’re talking about Silver going from about $25 an ounce to over $1,000 ounce if that were to happen.
Actually, I guess I was wrong….might be losses in the TRILLIONS, not just Billions for these evil bankers:
Unlike GameStop ($gme) which is worth billions, the above ground silver market is worth almost 1.5 Trillion (2018 estimate). This is not to mention the massive derivatives market on top of the silver spot market. A short squeeze will be much harder to achieve, so why bother? 👇 pic.twitter.com/TWF6yQHhNL
— Vijay Boyapati (@real_vijay) February 1, 2021
— GoldBroker (@Goldbroker_com) January 31, 2021
My friend Bo Polny was all over this a month ago when he came on my show and told me to start looking for $600 silver.
CNBC confirms that silver set a new 8-month high today (and that may be just the start):
Silver prices surged Monday, hitting an eight-year high.
The rise was possibly connected to the online WallStreetBets community on Reddit, a group of retail traders who played a major role in the rise of GameStop last week.
Three experts broke it down.
Jim Cramer, host of CNBC’s “Mad Money,” discussed the complex nature that comes with investing in precious metals, which faces its own limits as a resource.
“People need to recognize that silver, while a precious metal, is chiefly used for LED. It’s used a great deal for autos, obviously a great deal for jewelry. When you take it away, you’re talking about a market that is very small. There are only two stocks that are really investable … Pan American Silver does have 17.5 million silver ounces, they failed to deliver on the amount that they’d like to do. They’re predicting this year to do 22.5 million, that is actually very big. The other one that I find that is, let’s say, worthy of investment is Wheaton Precious Metals. The stock is up big, they have about 120,000 in ounces per year they intend to put out, and then everybody else is really too small. Obviously people are using ETFs in silver. Do I think that they’re misdirected in taking it up? I do think that if you think that GDP is going to grow, you might have something winning in silver, but it is GDP-oriented. This is the first thing that they have targeted that, frankly, has a limit because there’s not that much silver out there. But at the same time, when it is used is not ornamental. So therefore, you really do need a step-up in business, in order to make that invaluable.”
Mohamed El-Erian, Allianz chief economic advisor, connected the rise to the GameStop short squeeze, and how the conflict between retail traders and hedge funds could play out.
“The fact that you can get people to look at silver, and in the process, they look less at GameStop, and because of that, there’s less worry that the hedge funds who are short GameStop are going to sell, means you can impact lots of markets. So, don’t underestimate in the short term the influence. As to what will happen, look, there’s a major battle going on between three actors, not two. Three: the hedge funds that are short GameStop, the retail investors that are long, and the people in the middle. And the question as to where it goes next, is who’s got the weakest hand? Who’s going to fold first? Who is not going to be able to stay in that trade? Now, historically, that has been the retail investor. But the retail investors are more organized right now. … If they can stay organized, they can actually force the hedge funds to cover more. But today, you get a notion that maybe, they cannot stay organized. So we’re going to see. The one thing that is systemically worrisome is if the intermediary falls. That is a completely different issue than if the two sides of the trade fold.”
Short-Squeeze Stampede Sends Silver Soaring; Stocks Surge Off Overnight Slump https://t.co/htP4gDgKee
— zerohedge (@zerohedge) February 1, 2021
$50 is the Max & Stacy high price from their 2010 silver-short squeeze campaign to destroy banksters. Very proud of WSB/Reddit picking up the ball and running with it! “$500 Silver If You Want It”
— Max Keiser (@maxkeiser) January 31, 2021
When I think Silver, there’s almost no one who represents Silver more than Bix Weir.
He’s been on the Silver trade for a long time, and he explains why this is going to be Biblical:
Reuters was out in full force trying to downplay the likelihood of a short-squeeze, which tells me they are indeed starting to panic:
Silver prices have rocketed to their highest since 2013 as retail investors, egged on by messages on Reddit, pile into the market in an attempt to push up prices, although most analysts and traders say the rally will run out of steam.
Spot silver vaulted as high as $30.03 an ounce on Monday from $25 on Thursday morning, while shares of silver miners surged and retailers of bars and coins around the world struggled to meet demand.
But analysts say it will be extremely difficult to subject silver to the kind of short squeeze engineered last week on companies like U.S. video game store chain GameStop, which sent its shares up by hundreds of percent, and there is no shortage of the precious metal, so the market is likely to calm.
The furore began on Thursday after posts on the r/wallstreetbets Reddit message board — the same one used to spark frenzied buying of GameStop shares — urged investors to buy physical silver.
An early post, which quickly spread across social media, encouraged buying of iShares Silver Trust, an exchange traded fund (ETF) whose shares represent ounces of silver sitting in vaults.
This would force the fund to create new shares and buy silver to back them, exposing a shortage of supply and pushing prices up, said the post under the headline “THE BIGGEST SHORT SQUEEZE IN THE WORLD $SLV Silver 25$ to 1000$.”
Investors can also buy from retailers of bars and coins, but these are relatively small compared to the wholesale market and stock is limited. Buying shares in mining companies has no impact on silver demand.
Nonetheless, silver mining equities leaped and bar and coin sellers were swamped with orders, in addition to the almost $1 billion that flowed into the iShares Silver Trust in a single day on Friday.
As a result of these inflows and to back new shares, the ETF added 34 million ounces of silver to its stockpile, taking it to a total of 601 million ounces. [PREC/]
Smaller silver ETFs also saw a boom in activity.
Silver prices were up more than 9% on Monday, their biggest daily gain since 2008.
This is not the first attempt to bid up silver. In 1979-80 the brothers William, Nelson and Lamar Hunt amassed billions of dollars’ worth of the metal, pushing prices to record levels before regulators stepped in and the market collapsed.
WILL THE RALLY ACCELERATE THIS TIME?
Most analysts say no.
A short squeeze is unlikely. Unlike GameStop, there are no holders of massive silver short positions who can be forced to abandon them in big enough numbers to send prices though the roof.
While many bullion-trading banks have large short positions in U.S. silver futures, these tend to be balanced against long positions in the London Over-The-Counter (OTC) market.
Most hedge funds and other money managers with positions in silver were already long, betting that the coronavirus pandemic and its aftermath would lift prices.
And my friend BitcoinBen was all over the story too (watch on 2x speed):
I’m not an investment advisor, but I can tell you what I’m doing.
I’m buying the heck out of silver!
Have been for about 3 years actually, but now more than ever.
This might be last call for the train leaving the station if they can really pull this off.
And watching JP Morgan go bankrupt will just be icing on the cake…..don’t you agree?
Love to know if you like this as much as I do!