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Silver Short Squeeze: the long-term impact on the silver markets

Posted by Simon Keighley on February 11, 2021 - 1:21pm

Silver Short Squeeze: the long-term impact on the silver markets

Andrew Maguire explores the long-term impact of the ‘Silver Short Squeeze’ phenomenon on the silver markets

Watch this week’s Live from the Vault for:

  • Impact on gold and silver markets: 05:31​
  • Should I trade SLV? 10:48​
  • Insiders gathering physical silver: 15:40​​
  • Disruption in Gold Futures 24:04​
  • Bullish conditions for gold 25:43
  • A look at the technicals 28:34​​
  • Where can you get physical? 31:08

Although the market swell of Reddit’s leveraged traders has subsided, Andrew Maguire anticipates that this week’s action will have a lasting impact on the silver market. With the global spotlight shining on billions of dollars of bearishly skewed, potentially vulnerable bets – what does this mean for silver going forward?

 

By Sam Briggs - Kinesis

Kinesis - The future of money: Kinesis is a revolutionary monetary system, based 1:1 on allocated physical gold and silver, bringing back a true store of value to the global economy and rewarding all who participate.

 

Silver short squeeze market disruption

Along with the rest of the world, market-making insiders were clearly not prepared for this massive influx of Reddit-leveraged silver interest, according to Andrew Maguire.

The precious metal expert explains that, historically, insiders have been able to take the short side of spec longs with impunity. As insiders are secure in the knowledge of the pain points of those specs who borrowed longs, sitting on their books. However, Andrew Maguire reports that the sudden tidal wave of individually held SLV-focused interest made it extremely difficult for insiders to calculate these pain points.

In Andrew Maguire’s opinion, such a large diverse swarm of buy flow, seeking thousands of tonnes of leveraged long options, threatened to take the lid off the entire silver capping manipulation process. Looking ahead, the precious metals expert believes such monumental external interest has the potential to shift risk-reward metrics, disincentivising the naked short selling of silver and gold.

 

What does this mean for silver?

As Andrew Maguire sees it, the degree of this week’s unforeseeable open interest diminishes the leverage of First Majestic, as well as many other well-shorted silver related stocks. In turn, Andrew Maguire predicts this will weaken the insiders’ grip on the gold and silver stock index lever – a crucial component of their price capping strategy.

The precious metals expert believes this upsurge of fresh open interest will bullishly dislodge the much larger and more liquid GC and SI anchors. Positions that have long been relied upon to maintain the insiders’ casino-like 95% win metric, according to the precious metals expert. In Andrew Maguire’s opinion, these changes will impact the way insiders position in SI and GC, with a particular focus on naked shorting silver, gold stocks and indexes.

Andrew Maguire’s parting thought

The dust has not settled, in fact, the storm is just beginning, and this undoubtedly will change the game forever.

Article produced by Sam Briggs:

https://kinesis.money/blog/silver-short-squeeze-the-long-term-impact-on-the-silver-markets/

 

ecosystem for entrepreneurs

Simon Keighley Thanks for reading & watching, Corneliu and Titiana - have a great day.
February 23, 2021 at 1:06pm
February 19, 2021 at 6:23am
Corneliu Boghian Have a healthy new week, friends
February 15, 2021 at 12:31pm
Simon Keighley Thanks for reading and watching the video, Bill, Mike, Mihai, Gary and Corneliu - interesting times ahead for the silver market.
February 15, 2021 at 10:46am
Corneliu Boghian thanks for info
February 11, 2021 at 6:32pm
Gary Kriter good info. thanks.
February 11, 2021 at 5:40pm
Mihai Cristian Thanks for sharing
February 11, 2021 at 4:25pm
Mike Thompson Thank you for the info.
February 11, 2021 at 3:51pm
Bill Rippel Thanks for this post. Some interesting information.
February 11, 2021 at 3:39pm