Price of silver surges as Reddit traders find new target
nypost.com
nypost.com
I don't know what the source of "WSB is focusing on silver now" is, but it is clearly not actual WSB posts.
The real crime? Quite possibly, more than 100% of $GME may be currently owned by investors right now- thanks to shorting more than the available shares. If true, that would be clear evidence of fraud at the highest levels of our market.
Silver is quite the distraction from the real show today.
It's the same idea: you have a synthetic version of an asset trading for the same price of the real asset. If people start demanding the real asset, there isn't enough of it to go around and prices start to rise.
Not saying that's what's going to happen, but it's not absurd.
If it did, mining companies would be out of business almost instantly - their product being only useful in the market when it's worthless.
Futures contracts involve actual carrying costs - storage, transporation, delivery - with real physical goods; even if you personally aren't involved in the physical aspect (by trading derivatives or the like) someone else (e.g. the people with actual silver demand for their companies) is, and they'll make sure you can't just drive the price of silver up higher by cornering the physical market.
There's a bit of controversy around this.
For example : https://ibkr.info/node/992
If everyone in the market can't undertake delivery, the buyers on the other side who can will have their pick of orders, and prices will plummet.
You'll be selling heaters in Hell.
How do you know that? Or how would you know the opposite? Is this actually publicly reported?
(I note the original story is from the NY Post, the "Biden Laptop" newspaper, which also raises questions)
Hedge funds are trying a misdirection to relieve the pressure on GME and their other shorted stocks. But WallStreetBets are not falling for it. HOLD!
Yes silver is going up, but that seems to be more in response to the market uncertainty, and already having a supply issue.
If you go on Apmex, JM Bullion, etc. No one really has silver in stock. For example pre order of Silver Maples is at $8 above spot. Historically that tends to be more like $2-3 area. Their websites were all crashing from demand over the weekend too. Its not WSB doing that.
Edit: Other reason Silver has been trending up is Covid and potential stimulus. Metals are typically a hedge against inflation, and a massive stimulus is likely to cause inflation. The supply tightness has been around for months at this point, but extra bad this week.
Speaking of information, Wikipedia rates the New York Post as "generally unreliable for factual reporting especially with regard to politics, particularly New York City politics. A tabloid newspaper, editors criticise its lack of concern for fact-checking or corrections, including a number of examples of outright fabrication." https://en.wikipedia.org/wiki/Wikipedia:Reliable_sources/Per...
Buy silver because they don't want you to! Or, don't buy silver because that's a distraction from the real manipulation!
Who do you believe? I'm no stranger to conspiracy theories and my fear is that the WSB community is getting swept up in conspiratorial thinking. Sadly, with billions and billions of dollars at stake there probably is market manipulation happening, so the paranoid will feel vindicated when some manipulation is eventually discovered and acted upon - see the recent $GME situation. But there's going to be a massive false-positive rate on manipulation claims. I don't see things ending well for the average person getting swept up in this frenzy.
> When you believe that there are big cabals manipulating the market everything starts to look like some coordinated attack.
...what if everything is a coordinated attack?
Once upon a time, Caesar used violence to inflate the price of "caesar-face gold" above that of actual gold, and we've been playing that game ever since.
I think that the problems are baked in at a really deep level and we're just talking about it now because the wrong type of people are trying to play the same old game.
It's like the crazy guy on the streetcorner was the first one to start saying "We've always been at war with Eastasia" and now The Ministry of Truth doesn't know what to do.
I note in passing that silver/gold marketing has a long history of association with the alt-right. There's always someone telling you to buy silver for the apocalypse.
Being conservative about money is hallmark of long-term thinkers that understand that history repeats. It is also shared by (typically immigrant) families that have had experience of failing central banks.
There are various figures promoting these ideas. I appreciate why central banks would want to suppress the price of precious metals, but that isn't the same as believing it is happening.
That said, silver has run up to around $50 before. Consumers could do worse than picking up a few silver bars or rounds. I don't see this as risky as buying GME at $400 or BTC at $30k-$40k. Governments have stimulated trillions in 2020. 2021 is looking to be similar.
The conspiracy stuff can be interesting if you are into that kind of thing. Although you don't need to accept those narratives to appreciate precious metals.
Sell silver, buy $GME (my opinion, not financial advice)
It could be silver is being bought simply because the stimulus announcements. Probably not the only reason but raining helicopter money instead of allowing people to work will always drive up inflation.