Silver price hits 6-month high on #SilverSqueeze; this is next target – Phil Streible
Silver climbs $1.64 as of the 6:00 pm EST market open on Sunday as demand surges, pushing the price to 6-month highs.
Phil Streible, chief market strategist at Blue Line Futures, said that a $40 to $50 target from here for silver is not impossible.
“What we’re seeing here is that individuals are targeting these high-beta, high-shortage products like what we saw last week with GameStop,” Streible said. “They’ve moved over to the silver market and what they’re trying to do is a short-supply squeeze and thrust prices higher.”
Silver prices, miners surge as retail buyers pile in
SINGAPORE (Reuters) - Silver prices leapt to a five-month high on Monday and small silver miners listed in Australia surged after social media calls to buy the metal and emulate the frenzy that has driven GameStop shares up 1,500% in two weeks.
Spot silver rose as much as 7.4% to $28.99 an ounce, the highest since mid-August. Shares in a handful of mining firms such as Argent Minerals, Boab Metals and Investigator Resources leapt more than 15%.
Coin-selling websites also reported unprecedented demand and flagged delays in delivering bullion. The moves are the latest example of small-time traders buying en masse, particularly of stocks and other assets that were heavily bet against, resulting in large losses for major investors. [MKTS/GLOB]
“There is this curious situation now where the Reddit crowd has turned its sights on a bigger whale in terms of trying to catalyse something of a short squeeze in the silver market,” said Kyle Rodda, an analyst at brokerage IG Markets in Melbourne.
“The most important factor here is that silver is heavily shorted, the paper market is much, much larger than the underlying commodity can justify,” he said.
“There’s a lot of commentary on these platforms to pile in to the miners.”
Silver prices are up 15% since Wednesday’s close, around when messages began circulating on forums such as Reddit encouraging users to buy the metal and drive up prices.
(Reporting by Tom Westbrook; Editing by Daniel Wallis and Lincoln Feast.)
Silver price pops to 6-month high as retail traders looking for “short squeeze”
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(Kitco News) - Silver futures prices are trading sharply higher and gold is holding moderate gains in early Comex futures trading Sunday evening. Social media was lit up during the weekend, especially on Reddit, as a growing band of retail traders looked to slay another market-this time silver–that they claim is dominated and manipulated by the “big boys” on Wall Street. This follows the GameStock saga that played out last week, whereby the smaller retail traders put the squeeze on big hedge funds that had shorted the troubled business.
The silver market is a much bigger beast to take on than is a smaller individual stock. Still, the “Redditors” have put a scare into many on Wall Street, especially the big hedge funds that like to short stocks they feel will be in some trouble either at present or in the future.
While the gains in silver are certainly solid in early dealings Sunday evening, they are not the epic moonshot price advances that some social media sites were predicting during the weekend. However, the night and the trading week is still young, and much can happen even overnight. The U.S.
stock indexes are trading solidly lower in early “overnight” trading, which could prompt further safe-haven demand for gold and silver if losses in the stock indexes accelerate.
Importantly, thegold and silver markets had a bit of a tailwind behind them before the Redditor trade kicked in. Many veteran market watchers were already reckoning the “inflation trade” would boost raw commodity markets, including the metals, what with major central banks and governments pumping so much liquidity into financial systems in order to jumpstart major world economies that have been crippled by the Covid-19 pandemic.
This story has yet to fully play out. Stay tuned to Kitco News for the latest developments on the matter as it relates to the metals markets.
March silver was last up $2.01 at $28.915 and February gold was last up
$9.60 at $1,856.90.