Wallstreetbets eye up SLV

[Arganto]

JUST IN - #Robinhood app has reportedly begun to automatically sell shares of $GME for some customers, "for their own good."

That's a copy/paste from Disclose.tv on Gab. With sick twisted c**p like that going on sticking it to the 'man' will be quite the mission for those traders.

[Arganto]

[Drawga]

3 minutes ago, Liam84 said:

JUST IN - #Robinhood app has reportedly begun to automatically sell shares of $GME for some customers, "for their own good."

That's a copy/paste from Disclose.tv on Gab. With sick twisted c**p like that going on sticking it to the 'man' will be quite the mission for those traders.

these chaps are making some funny points

 

[Abyss]

Silver Stocks News: Is a Reddit Silver Squeeze Targeting AG Stock? Other Mining Stocks?

https://investorplace.com/2021/01/silver-stocks-news-is-a-reddit-silver-squeeze-targeting-ag-stock-other-mining-stocks/

 

[Shinus73]

6 hours ago, motorbikez said:

Reddit boys are maybe having a bit of fun with First Majestic silver on the Canadian market up 40% in pre market trading lol.

AG Stock Price | First Majestic Silver Corp. Stock Quote (U.S.: NYSE) | MarketWatch

Marvellous, my First Majestic SIPP holding is up £5,000 in a day...

[MrFreezerrr]

Can someone explain to me in easy terms what is happening? I don’t have any background in shares or stocks. What is a silver short squeeze and what does it have to do with (for example) gamestop shares rising so fast? I’ve read an article today about what’s going on (in my own language) but I still don’t get how the mechanism works 😅Thanks in advance.

[SilverDrum]

1 hour ago, MrFreezerrr said:

Can someone explain to me in easy terms what is happening? 

This sum's it up pretty simply.

[SilverMike]

To short a stock:

• Borrow shares from your broker, immediately sell them at the current market rate, lets say £10 share, this drives the price down (or as a PI without millions to play with you judge it when you think a share is going to tank)
• When the market bottoms, buy the shares back at lets say £5 a share
• Give the shares back to the broker, position closed. You pocket £5 a share

with Gamestop:

• Hedgefund took a massive short (i.e. borrowed a lot of stock and sold it), driving the price down, the share capitulates as stops are triggered etc and the share sinks even lower. Funds can hold these positions for a long time sometimes, trying to drive the price even lower before they close. (destroying PI's, companies, pension funds etc on the way)
• Reddit guys decided to go on a massive buy run, pushing the price of the share up, fast and so far past the entry point (sell point) of the hedge fund that they exceeded the value of the entire hedge fund at $13.1bn at one point. The hedge fund hung on hoping the the price would crash again, it didn't
• Hedgefund eventually gave up it's position and started buying the stock back to give back to the broker, pushing the share price up even further.

With silver ( or gold or btc for that matter)

• as discussed in this thread, some of the large funds, banks etc have held PM back for a longtime by selling heavy (going short) for many reasons (and lots of other dirty tricks), assuming you take the position PM should have gone up a lot more than it has for many reasons.
• There's a big pump going on now all over social media to try and push silver to the point that these big funds need to start buying the silver back as it would cross the point they loaned it and sold it at, as was the case with GameStop. who knows, it may happen, only takes for one big fund to get shaky, especially after what happened this past week and start closing their position and this then increase the price and causes more to close (buy) so on and so forth - its very much the opposite of what the financial institutions have been doing to PI's for years. 

I might not have all the details totally right, but this it a basics of it...

[MrFreezerrr]

Thank you @SilverDrum and @SilverMike for taking the time explaining to me.

I’ve also taken some time to read-in on “shorting a stock/share’’ and then it made much more sense.

I think I’m starting to see the big picture now 😄 Wow, this is insane 😂

How is something like this even legal. So the richest people in the world can just buy a whole bunch of shares, then short them while selling off to lower the price and take massive gains. Or am I missing something here?

[Mike1976]

59 minutes ago, MrFreezerrr said:

Thank you @SilverDrum and @SilverMike for taking the time explaining to me.

I’ve also taken some time to read-in on “shorting a stock/share’’ and then it made much more sense.

I think I’m starting to see the big picture now 😄 Wow, this is insane 😂

How is something like this even legal. So the richest people in the world can just buy a whole bunch of shares, then short them while selling off to lower the price and take massive gains. Or am I missing something here?

If you’ve the time watch the movie The  Big Short or even better The Wolf of Wall Street. They can help explain 

[Stwills]

Silver definitely Bullish today, strong support at 26. and back up to $27! over $30 next week?

Maybe Elon Musk can also tweet about Silver like he did for Bitcoin this morning... love it!

[Arganto]

https://youtu.be/tb35Z9tSRmA

Hmmm, normally a preview pane comes up when YouTube is linked. It's a Timcast video going over what's happening, a good layman overview as opposed to the finance guy's reports. Re-occupy Wallstreet is being organised off the back of this. It's being organised by the New York Conservatives group...maybe this is what will unite the left and right of the 'everyman' (that includes you ladies)? At least long enough to pull the drawbridge down?

Edited January 29, 2021 by Liam84
Explain link

[CollectForFun]

The whole idea makes perfect sense up to the point in which short sellers are squeezed. After that point it becomes nothing else than mere Ponzi scheme. Noone in their sane mind would want to buy GameStop shares (or other shares price of which went so much beyond their hypothetical real value) at those levels, other than short sellers who need to close their positions. So if such forced buyers disappear, who is going to buy those shares from you? Only additional manipulated masses funds of which are finite though.

What I mean is that you can really earn fortune on this, provided you exit in time. Otherwise the crash is inevitable and I am afraid many small investors may not expect this.

With silver it would be more interesting because it is more difficult to determine it's actual value, i.e. at what level the entry does not make sense anymore. But considering the relative ease with which silver is produced and recycled, I dare say that level is not too high... But what do I know... 

[Arganto]

Despite being on the internet since the 14.4K days I didn't get involved in the memewars/Gamergate as they hit their peaks, it didn't interest me and seemed like a 'detached from real life' affair. I'm starting to see the power of such things when there's a 'fight' to be had over a collective cause. This is turning out to be very interesting...

 

[Silversavant]

On 28/01/2021 at 18:54, Silverscrooge said:

I have been stacking for twenty years waiting for this time...its happening finally.

Hope that you are prosperous!

[MancunianStacker]

[Silversavant]

11 minutes ago, MancunianStacker said:

If this happens I wonder if the Brittish Churches will be able to afford to pay for their own roofs.

[Kman]

7 hours ago, Liam84 said:

 

50 billion lol

The loss of 2008 would have gone into trillions

 

 

[breaktwister]

 

https://twitter.com/TheLastDegree

https://goldsilver.com/blog/first-gamestop-next-silver/

Basically, we know the large banks are heavily short silver on the Comex futures market, as much as 250 times the amount of silver available for delivery.  If enough people purchase physical silver directly from dealers and mints, or via ETFs (PHAG in the UK, PSLV elewhere) then the Comex can be drained quickly forcing bullion banks to close their shorts.  This is a huge deal and could see physical silvers shortages appear very quickly globally.

 

[Spark268]

wern't the Hunt Brothers responsible for the first short squeeze in Silver in the early 80s? Silver Thursday [Wikipedia]

there was also another one in late 2010/early 2011 where Silver hit 29.

 

[Spark268]

On 28/01/2021 at 22:59, MrFreezerrr said:

Can someone explain to me in easy terms what is happening? I don’t have any background in shares or stocks. What is a silver short squeeze and what does it have to do with (for example) gamestop shares rising so fast? I’ve read an article today about what’s going on (in my own language) but I still don’t get how the mechanism works 😅Thanks in advance.

 

A short squeeze is the opposite of a market crash (where everyone tries to sell stocks that they hold at the same- long squeeze if you will). In a short squeeze, everyone is trying to buy back the stock they've sold earlier, usually all at the same time. Remember that, in a short trade, you've already sold shares (that you have borrowed), with the hope of buying them back at a lower price later.

The potential losses in a crash are just the money you put in, but in a short squeeze, your potential losses could be infinite (the share price can keep going up). Because of this, everyone panics and buys at the same time, driving the share price to extreme highs. 

short squeezes happen quite often, although not as spectacular as with Gamestop - the guys over at Reddit have joined in the buying frenzy to make things worse. People at Robinhood are complaining that they cannot buy any more Gamestop, but hindsight will tell them its for their own good ;0)

Aside from silver, there are a lot of stocks in the UK which are long overdue short squeezes. Royal mail was shorted heavily, until Covid hit, and its share price has more than doubled since.

as an aside: Some ETFs and some of the 'cheaper' brokers in the US and over here can sometimes lend the stocks **you** hold to people are shorting. In return they give the broker cash + interest. Those interest payments are then used to subsidise the cheap broking service, with the cash used as a security deposit - in case the short seller does not come back with the stocks they've borrowed.

I dont know if the SLV and GLD ETFs engage in this, but i wouldnt be surprised !

Edited January 30, 2021 by Spark268

[GoldStandardPartyUK]

 

2 hours ago, breaktwister said:

 If enough people purchase physical silver directly from dealers and mints, or via ETFs (PHAG in the UK, PSLV elewhere) then the Comex can be drained quickly forcing bullion banks to close their shorts.  This is a huge deal and could see physical silvers shortages appear very quickly globally.

my instincts tell me the comex stock pile is too large for this to drain.

 

On 28/01/2021 at 14:21, Liam84 said:

If it does work (spot at £19.17 right now) and soars it likely won't stay there long, I wonder if it will directly affect the physical market enough to tempt people to cash in that physical silver? Time for a swap into gold maybe...🤣

 

this is the key question for me. I need help to understand this point. Is SLV and physical going to diverge? If the momentum traders and Reddit types do manage to drain the comex of the physical silver that backs the SLV ETF, then do we think the silver price would be raised along with it? Or do we think as SLV goes to the moon (GME is currently at 54x) the price of physical silver might only go 2x or 3x?

[Stwills]

Nice piece from SD bullion today...should we all buy digital Silver next week? I am..

 

 

 

[Silversavant]

45 minutes ago, GoldStandardPartyUK said:

 

my instincts tell me the comex stock pile is too large for this to drain.

 

this is the key question for me. I need help to understand this point. Is SLV and physical going to diverge? If the momentum traders and Reddit types do manage to drain the comex of the physical silver that backs the SLV ETF, then do we think the silver price would be raised along with it? Or do we think as SLV goes to the moon (GME is currently at 54x) the price of physical silver might only go 2x or 3x?

I was under the presumption that there isn't actually enough silver in COMEX to keep up with current physical silver demands. So if everyone tried to cash in, they would have to default/defer.

Dont take that as gospel, fact or anything other than a ramble. I cannot remember or cite the source but 100% sure i heard it from someone close to reputable.

Didn't dream it, honest.

[breaktwister]

The CME futures shorts on silver are between 100-600 times the amount available for delivery.  These are banks selling to control the price.  Don't ask me why, becuase all answers are only speculation.   What can be said as a fact is if they are forced to 1) close their shorts or 2) deliver the metal, the price will go parabolic, perhaps no offer as these banks do not have the metal to deliver.