If you missed GME short squeeze, the one that everyone is talking about now, the same one I told you about when GME stock was $11, well you might get another chance with Silver price these days.
There’s a lot of rumor on WSB subreddit, DDs, innuendo, chitchat on Twitter and private forums about the silver futures and markets these days. Most of the explanations as to why Silver will see a short squeeze is connected with J.P. Morgan silver speculation. Rumor has it that J.P. Morgan has amassed a whopping short position in silver. Well, it is not a rumor, it is a fact. According to this tweet by famous Max Keiser, JP Morgan is about to witness another attack, now that everyone and his grandmother has access to hard commodities market.
Silver is probably the most shorted, (using naked-shorts) security/PM in the world— Max Keiser (@maxkeiser) January 27, 2021
The “Crash JP Morgan, Buy Silver” campaign of 2010 drove the price from $15 to $50 (without Robinhood) #WSB/Reddit crowd could probably realize a 15x with a short-squeeze now @wallstreetbets pic.twitter.com/B1P7bl7gl0
But why would silver price (SLV) go up now? Is the squeeze real? Can we see $500+ price tag on silver?
…some observers are accusing the bank (J.P. Morgan (NYSE: JPM)) of acting as an agent for the Federal Reserve in the market – every tick higher in the price of silver undermines confidence in the U.S. Dollar.source
So, if we are talking about the bearish case for silver price, this is a major one. Weak silver works well for the United States of America, or the bankers that are running the show. So, they will probably do everything to stop the mini rally that started early Monday (silver went up from $27 to almost $30).
“By selling massive amounts of paper silver in the futures market,” SFGate wrote back in 2010, during the first silver short squeeze, “J.P. Morgan has been able to suppress the price of the precious metal. It is believed that these short positions are naked” ( not backed by any physical silver).
This is very important part, and probably the best bullish case for silver price. And kind of a similar to what is going on with GME price. Hedge funds shorted more than 100% of GME shares. How can they short something that doesn’t exist. The same goes for silver.
According to EG “the paper market dictates the price of Silver. Since it is paper, and not many actually take physical delivery of Silver, large funds and banks CAN and HAVE shorted more than the entire world’s supply of Silver. Many Silver bulls think that this manipulation is what has been keeping the prices of both Gold and Silver suppressed.”
Back in 2010, during the first short squeeze against JPM, that is knows as “Crash JP Morgan, buy Silver” campaign, it all “worked for awhile driving Silver from $17 to $50, but then JPM sold a fresh 10 bn Oz’s of naked shorts they created – and killed the rally.”— Max Keiser noted in 2017. Will this be possible now when millions of young adults equipped with nothing else but a smartphone and some cash can chip in and push the prices up?
And for the end, here is another bearish argument. According to many posts at WallStreetBets subreddit, they are not the ones promoting this silver short squeeze, it is actually a ploy by the same hedge funds and the mainstream media against GME rally. Here is what varmint700, WSB member, thinks about it:”There is a massive misinformation campaign going on and it has been all weekend. They are pushing the lie that WSB has been promoting SLV. Not sure what the endgame is, but if you’re media, PLEASE call out this false narrative in your reporting.”. So, here you go, we are not Bloomberg, but decided to post the other side of this coin.
On January 29th, the iShares Silver Trust (NYSEARCA: SLV) closed at $24.99 and is up almost 10% during pre-market session on Monday.