For those of you who don’t know, a group of retail traders on reddit were able to squeeze a hedge fund into near bankruptcy by pumping the Gamestop stock to record highs.
Similarities
A similar story is developing in regards to silver and the same hedge fund that lost the Gamestop bet, (Melvin Capital) is once again finding itself on the opposite side of the retail traders by shorting a major silver miner (that is poised to benefit from the silver squeeze).
The institutions don’t seem to want the price of silver to go higher. As silver’s spot price runs higher it is pounded back down by large short bets.
You can see in this graph how the price manipulation works.
Flattened Out
However the manipulation is only keeping the silver price flat for now as mounds of people pile into buying physical silver.
The Wall street bets group on Reddit has kicked out the silver bulls who have started their own subreddit called Wall Street Silver.
Gab.com also has a big silver community in their group as well and regular folks are sharing social media posts of all the physical silver they are buying with the limited supply that is still available.
A grassroots movement of people who believe in sound money are actually trying to take on Wall Street.
Margin Requirements
In response, the CME has suddenly changed its margin requirements.
…and silver ETF’s have been editing their prospectus to justify not having to buy physical silver while making a few sly remarks about the peasants who are trying to move the price of silver higher.
They certainly don’t sound like people who want the price of silver to go up, even though that’s what makes money for their shareholders.
When silver futures contracts expire in February and March, we will see if many will demand physical delivery instead of accepting cash settlement. This could force true price discovery on silver and mint a few silver bulls as millionaires.
Check out this hilarious meme video comparing the oligarchs to doomed Nazi strategists at the end of WW2. It actually explains the silver squeeze dynamics pretty well.
But the retail traders are up against big institutions who aren’t afraid to change the rules of the game halfway through to benefit their cronies.
We saw that play out with how Robinhood trading app and others stabbed their users in the back when they were getting too powerful by limiting their ability to buy the stock.
Is it Over?
Actually the Gamestop squeeze may not be over yet. It is said that if all those retail traders refuse to sell off their shares, when we get to Mid march, a lot of shorts will be forced to cover at whatever price retail traders are willing to part with their shares, and if they really have “diamond hands” as they claim, it could force the price skyward again.
This is due to the fact that there is actually a limited supply of shares available. The shorts purchased more than 100 percent of the shares in the market. (Don’t ask me why that’s legal).
Its truly interesting to watch these dynamics play out as I have never seen the common investor go up against the financial institutions and win.
For those of you who want to find someone you can trust to buy physical silver, contact my financial advisor Dr. Kirk Elliott who can walk you through how to acquire and store physical silver at your home or with a custodian.
Furthermore he can guide you if you want to convert a portion of your retirement into a gold or silver IRA.
You can schedule a free appointment with him at the following link:
