Silver Short Squeeze: What’s Really Going On
- Katusa Research
One of the easiest ways for traders to play the #silversqueeze is to target the silver miners, most of which have secondary listings on the NYSE or NASDAQ. These stocks have seen heavy trading action this week: some stocks gained as much as 28%… Only to immediately fall back 20% the following day after the #silversqueeze started losing steam, essentially giving up the gains. Last week I talked about GameStop’s short squeeze:
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https://www.youtube.com/watch?v=hhW0T…
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But there are a few reasons why what happened to stocks like GameStop and AMC Entertainment won’t happen to silver miners. Over a week before WSB decided to shift its attention to #silversqueeze, the guys at BlackRock, Sprott, and Aberdeen Standard, to name a few, had the foresight to add almost $600mm to their silver ETP holdings. When silver Booms, it moves fast and swift. But when it Busts and there’s no bid, it collapses just as hard… I always buy my metals during Echo’s, which I’ve talked about in the past: https://katusaresearch.com/the-most-i…
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To truly cripple the shorts in the silver sector, over 200 million ounces will need to be purchased for the synthetic derivative and paper contracts to be exposed. There’s no doubt that retail investors, in their latest insurgent efforts, are driving up the share prices of silver ETPs and silver miners.
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