Return Of The Silver Raid, Price Of Silver To Hit $30?

Source: Bullion Exchanges

Second Silver Squeeze to Call for May Day?

Demand is propping up the price of silver, keeping it well above $24 per oz. To put this into perspective, it bottomed around $12 per oz in March 2020.

People may have thought the raid was over, but the subreddit has not lost traction. In fact, it has grown to over 65,000 people with very deep pockets. It is not irregular to see people buy ten 1 kilogram bars, which is worth approximately $10,000 today. Sometimes, people share their massive silver hauls: 

Source: Twitter

 

So what is the plan now? For MayDay, the forum members want to attack COMEX. Their goal is to assemble 100,000 people to buy 100 oz of silver each on Saturday. This is not necessarily an impossible feat. One major buyer like the one who just bought $800,000 worth of physical silver could make another major order. Plus, this new effort to cause a silver squeeze, similar to the GME squeeze, seems to be more coordinated than the first attempt. Although the market is closed over the weekend, it is possible to buy silver online and process it on Monday. 

Does this call to action really bear weight on the silver market? Some would say no, that dealers are the only ones benefiting from this. However, some “officials” have come out during the past week to assert that there is no silver shortage at this time. They further backed up that such a raid on the silver industry will not have any difference in the price of silver. Some might say that is interesting timing for these statements. 

This is especially true considering in February 2021, London reports indicated it was merely a week away from running out of silver. Moreover, COMEX now reports incredible volumes of gold and silver outflows in recent history. But where is this demand coming from?

Where Is the Demand for Silver Coming From?

Do not forget that silver is a highly industrial metal in addition to being a precious metal. Silver has demand on multiple fronts including the members of Wallstreet Silver, major tech and vehicle industries, and hedge funds to protect against inflation. Both individuals and companies are waiting on delivery at contract expirations instead of rolling over. The biggest consumers include electric car producers, phone manufacturers, battery companies, and more. These may very well be the biggest outflows awaiting deliveries from the COMEX, buying in bulk as the silver raid continues.

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Disclaimer: This article is not meant to serve as professional economic advice. Any action you take upon the information from this article and website is strictly at your own risk.

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