#silversqueeze is trending because a whole lot of people believe they can squeeze a $1 trillion physical market.
Hint: They can't. Most banks aren't outright shorting silver, either. Most are helping their clients sell future production or hedge.
This nonsense needs to stop. π€¦ββοΈ
Hint: They can't. Most banks aren't outright shorting silver, either. Most are helping their clients sell future production or hedge.
This nonsense needs to stop. π€¦ββοΈ
Silver is a hybrid between an industrial and precious metal.
The industrial side needs a robust global economy to flourish.
We don't have a robust global economy.
The precious side needs, in part, increased discretionary spending. Hard to get during tough economic times...
The industrial side needs a robust global economy to flourish.
We don't have a robust global economy.
The precious side needs, in part, increased discretionary spending. Hard to get during tough economic times...
Silver prices also tend to follow Chinese GDP, which has been softening due to zero COVID policy and a hangover from too much real estate development. The reason for this is China is a big industrial user of silverβthat demand of late is dropping, with silver prices following.
Fun fact: 21% of silver production comes from recycling scrap, as well.
Even if one could 'squeeze' the market by accumulating tens of millions of ounces of physical silver, there's still plenty of supply that would come online at higher prices from recycling and resale.
Even if one could 'squeeze' the market by accumulating tens of millions of ounces of physical silver, there's still plenty of supply that would come online at higher prices from recycling and resale.
The higher the silver price goes, the more recycling-driven supply we see come online, which often acts as a damper for even higher prices.
Why does this matter?
Because it is the antithesis of the squeeze theory. There is no squeeze to be had via accumulation of physical.
Why does this matter?
Because it is the antithesis of the squeeze theory. There is no squeeze to be had via accumulation of physical.
There's no conspiracy here. There's no secret cabal of evil bankers suppressing the price of silver for no apparent reason.
The accounts promoting this nonsense are likely paid shills or just enjoy growing their followers via sensationalism.
Be careful who you trust on here.
The accounts promoting this nonsense are likely paid shills or just enjoy growing their followers via sensationalism.
Be careful who you trust on here.
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