Winchester

1 hour ago, sovereignsteve said:

Quite straightforward.

Someone started a rumour that the Reddit traders were going to target the big silver shorts by buying en masse.

As per standard trading rules, speculators bought the rumour to get in early, confident the price would go up over the weekend and on Monday.

When it became obvious the rumour was incorrect, they then "sold the fact" and the price came back down again, netting them a tidy little profit.

Who started the rumor is anyone's guess?

I'm thinking that some of them might have found that the buyers were hard to find at the higher prices........I know I wasn't a buyer at all after the price went up.

I suppose if it seemed to be a long term increase in value I would have become a buyer again at some point........but I just didn't see that happening.  I'm old enough to remember the 1980s.

1 hour ago, sixgun said:

The WallStreetBets group were targeting stock with large numbers of shorts against them. This came to include First Majestic Silver.

The official WSB group have said they are not targeting silver but there were some comments and the hype and enthusiasm spread. i do not think the driver was actually coming from WSB for silver to climb. Silver went a lot higher. There are a lot of shorts in silver. There are many $billions of shorts. There are many paper claims on the same ounces. These have built up over years. If silver were to actually go shooting to the Moon this would cause serious problems for some of the major banks. So certain levels will be defended to the death. The high of August this year was briefly breached but then price was knocked back. You can be sure there will be a heavy layer of short contracts above the recent high now. The short players have to get price down. They can't have price running away - they are struggling to close short positions as it is but they will be facing massive losses as the hedge funds did when Game Stock shot up. They want to knock the wind out of the sails of the silver bulls. This market management is a game of psychology and they need to keep as many people depressed as possible. 

So, I'm getting the idea that the big banks conspire to keep silver stable because if it shot up real high a lot of people would try to cash in their paper claims and the banks couldn't cover those demands?

I won't comment on "shorts" because I still have a very muddled idea of that process.

I should explain more about me.........I have been buying a bit of silver (mostly old coins) over the years........ONLY because I have quite a bit of money that is just numbers on a computer and I want to have something physical in possession just in case the numbers on the computer vanish due to some horrific disaster.

So, I don't buy and sell and I'm not familiar with all the jargon and investment strategies.

I did, however, refuse to buy when the price went up.......because the predictions of huge increases seemed bogus.

That decision was based more on instinct than actual knowledge.

Thanks for the info.

1 hour ago, Rll1288 said:

Ok so here goes..... Lots of talk of trying to do to silver what was done on GME by the Redditt forces and cause a short squeeze... pushed up a little and now back to where it was previously. many commentators were trying to say $1000 an oz by tomorrow, then reality struck... it was two days of madness and now normality back.

Thanks.

I guess the Redditt forces thought silver and GME are comparable.......even I can see that silver is far different.

And........this shows again that when a bandwagon goes by there are some folks who can't resist jumping onboard........and they get hurt when a train hits the bandwagon.

I did read the last four pages, hoping for info on what happened and why. 

There was a lot of interesting banter and joking around, but not a lot of serious discussion.

Maybe I missed the wheat among the banter and thread drift to other topics.......but I'll try again.

I just thought somebody might want to summarize now that the excitement seems to be over.

Thanks anyway.

Ok, I'd really like to hear some discussion of explanations of why silver spiked up and then (now) seems to be crashing.

I'm not well educated in the silver buying game, so keep in mind that dummies will be reading.

Thanks.