What Is Basel III & Silver Squeeze in Simple Terms? Defining the Catalysts to Real Gold & Silver Prices Scottsdale Bullion & Coin

After all, this type of analysis helped me spot Bitcoin’s recent run-up ahead of time. Right now, silver futures are trading in a range between the $22 support level and the $30 resistance level that

After all, this type of analysis helped me spot Bitcoin’s recent run-up ahead of time. Right now, silver futures are trading in a range between the $22 support level and the $30 resistance level that formed at the peak in early-August. If silver can push above $30 on strong volume, the odds of an even more extensive bullish move will increase.

Because this fund tracks the market price of silver, SSLN is up nearly 10% today. Making investment choices is a personal decision, but it’s hard to overlook what’s happened in recent months. There’s definitely an impending silver shortage coming, and when combined with issues such as government reserves evfx forex broker review and industrial needs, enormous increases in the price of silver could be on the way. For some reason, though, talk of a silver squeeze hasn’t subsided. That’s because the precious metal is heavily shorted – meaning there’s a large number of futures contracts predicting the price will drop.

  1. What most people don’t realize is that a similar “raid” already took place in history.
  2. The superimposed orange line depicts the price of the continuous silver futures contract, which witnessed a spike but failed to raise prices significantly, as was expected.
  3. The key is purchasing gold and silver before the steep premiums that could culminate as a result of Basel III, the #SilverSqueeze, and inflation.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article. Don’t make the mistake of automatically going with a dealer who appears to be quoting the lowest price for a product. That price may not include hidden charges or upsells that are tacked on later. During the decade of the 1970s, as paper assets got clobbered by inflation, gold delivered average annual returns of 30.7%. The S&P 500 barely eked out nominal gains of 1.6% per year – which were far too puny to keep pace with an inflation rate that surged into the double digits by the end of the decade.

Ultimately, we want you to feel comfortable and informed when making investment decisions, regardless of whether that is with us or not. People can argue over whether the price of silver will skyrocket, but it’s hard to deny that market manipulation exists. Even if there were no underlying “bad acts” on February 2, 2021, the Hunt brothers have already proven that the https://www.forexbox.info/macd-trading-strategy/ government and heads of exchanges can change rules when they want to. It was shortly after the Reddit-fueled, meme stock saga that the silver market landed squarely in the cross-hairs of the online community. However, the supposed silver squeeze and the one that followed have been rather ineffective when compared to short squeezes on Gamestop (GME) and the like.

What is a silver squeeze?

Watch his full analysis of the forces about to set off a physical silver rally on AZTV’s Mike Broomhead show. Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. They believe that by buying and holding GameStop, they can force the price higher, and force GameStop short-sellers to buy back the shares at ever-higher prices.

Hashtag ‘Silversqueeze’ Pushes Silver Above $30. How High Can It Go?

I couldn’t fail to have seen the GameStop buying frenzy that has consumed US markets in the past week. The American video game retailer is in a very unusual situation. Incidentally, since its inception, the HUI gold stocks index has underperformed the gold price. Looking longer term, gold has risen almost 10,000% – from $20 to nearly $2,000 per ounce – since 1930, priced in America’s depreciating fiat money. This doesn’t mean manipulation isn’t taking place, though, and the saga of the Hunt brothers proves this is something that can happen.

What is the Silver Raid?

If there is a pullback, prices may retrace to the $27 to $28 price level. History proves that gold and silver perform well overall in inflationary times. To be sure, shortages currently exist in some retail bullion products, largely a result of production bottlenecks and high retail investor demand for the white metal. Here we will answer a few of the most pressing questions currently on the minds of precious metals investors. Strong demand for bullion products amid tight market conditions and unprecedented “stimulus” measures from Washington have lots of people asking lots of questions. Because of these decreases, many people called it history’s “greatest theft in the silver market.” The raid that found its roots in WallStreetSilver intended to push back against price manipulation.

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin.

This information is made available for informational purposes only. It is not a solicitation or a recommendation to trade derivatives contracts or securities and should not be construed or interpreted as financial advice. Any examples given are provided for illustrative purposes only and no representation is being made that any person will, or is likely to, achieve profits or losses similar to those examples.

On Friday, January 29, silver prices touched a high of $27.65, and this bull run pushed the silver spot price above $30 today. In simple words, silver has surged nearly 19% since Thursday last week. In addition to this, today’s one-day percentage gain is the biggest since 2008. The below silver chart shows the one-day percentage change in price. It’s a well-known fact that silver and gold can help you hedge against inflation. The key is purchasing gold and silver before the steep premiums that could culminate as a result of Basel III, the #SilverSqueeze, and inflation.

If this doesn’t happen, “shorts” will have to pay the difference in price. The idea behind WallStreetSilver is that the precious metal is seriously undervalued due to market manipulation. In the minds of many, though, purchasing large supplies of silver https://www.forex-world.net/brokers/duties-and-responsibilities-of-real-estate-broker-3/ could rectify this. Doing so would drive up demand, limit supply and thus make price manipulation more difficult. I believe that chart analysis is a tool that is helpful for determining if a large move is likely ahead in the silver market.

The second silver squeeze or ‘silver squeeze 2.0’ took place on May the 1st – although this fell on a Saturday so much of the price action was captured on May the 3rd. Looking at the chart below this attempt had a more muted effect initially, as price action jumped less than it did the first time around and witnessed significantly lower volume, too. Given that silver prices took out the $30 price level earlier today, the next major psychological resistance is $35 and $40. “There’s far more cash trying to chase physical assets because we’re suffering the bite of inflation, and supply in all of these markets is becoming extraordinarily thin,” explained Eric Sepanek.

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