#SilverSqueeze - Can It Be Successful?

Lsmartblaa on 31/01/2021 - 23:30
Last edited 01/02/2021 - 01:42

Noticed that there wasn't a post on this already, so decided to kick one off!

I've been keenly following the latest target for WSB, which seems to be moving towards short squeezing the heavily manipulated silver market.

Looks like there's a bit of a run started on physical silver, believe some elements of the plan is to soak up physical supply to jack up the price of physical silver, take delivery of futures contracts, and remove the artifical downward pressure (by squeezing short sellers) on silver pricing that has happened since the 70s and 80s.

I already have a pre-existing small investment in silver & gold, so you could say, this has peaked my interest slightly! :-)

How realistic is this particular short squeeze target?

Excuse any inaccuracies, I'm not a pro!

Financial

Comments

  • SydStrand on 01/02/2021 - 01:15
    +8

    If you're only now discovering wsb, you're probably too late. Silver is not mad shorted like GME; the whales are now aware of wsb, less likely to reveal short positions, and will bolt at the first whiff of an organised squeeze. It's also 'piqued.'

    How realistic is this particular short squeeze target?

    Who's to say? Some prophet on wsb? For every dude who made bank on GME, there are ten others posting loss porn. Don't invest any money you're not also prepared to lose.

    • Kangal on 01/02/2021 - 09:04
      +2

      Exactly.
      They tried to ban Reddit/WSB and realised that would cause more problems. They tried to stop GME surge and that backfired. So the rich and smart whales are going to adapt. They will guard their secrets closer, infiltrate groups like WSB to gauge their competitors, and rig the game in their favour once more using various means. They will do this. Higher government regulation is not what they want.

      However!!!
      I think half the whales will see the above, and half will think this GME was a fluke. So the chance of a second successful run is highly likely, and Wall Street will lose to unite plebs. This second run will be successful, but not as much as the first. And after that, it's mostly over. I base this over how Bitcoin surged massively in 2013, then a huge amount in 2017, then a modest amount in 2020. The whales do adapt over time.

  • Top G on 01/02/2021 - 02:25
    -4

    rip WSB all the normies flooded the place. Why do they always have to ruin everything :(

    • Brian McGee on 01/02/2021 - 07:08
      +2

      Isn’t that the point? To give normies the tools and information to play the game with the ‘experts’.

    • iforgotmysocks on 01/02/2021 - 07:19

      Hodl

      • pjetson on 01/02/2021 - 08:11
        -1

        Hodl

        Hodor?

  • EightImmortals on 01/02/2021 - 07:26

    You mean I can finally sell all the Zombucks I got a few years ago?

    http://www.zombucks.com/

    Current silver price $35.34aud for reference.

  • coffeeinmyveins on 01/02/2021 - 08:58
    +2

    I was all for the GME thing because the real losers was a particular hedge fund that cheated the system to short more than 100% of the stock, but you do realise that an organised effort to (profanity) with commodities and other market securities could have ramifications that affect the economy (and you) in a big way? This isn't a game and these (self described) autistic retards on WSB who think GME is going to go to $100k or DogeCoin is going to go to $1k and become a new world order are baffling to me.

    How realistic is this particular short squeeze target?

    Let me consult my crystal ball.

    You're looking for everyone here to go "yes! Silver is going to be the next short, get in on it now!" and that you'll become a millionaire like that guy who dumped 50k into GME a year ago, but the chances are you won't.

    • EightImmortals on 01/02/2021 - 09:00

      Yes, this IS a game it's just that up until recently you and I weren't allowed to play. Now that we are the spiteful bullies might go home crying and take the stumps with them.

      • coffeeinmyveins on 01/02/2021 - 09:04

        If the only people that lost were the hedge fund billionaires and companies that exist only to make the richer richer then sure, I'm all for it and then some. The distribution of wealth in the world is getting more and more skewed toward the 1% (and the 1% of the 1%). Eat the rich I say.

        But at the same time you can't deny that it's not possible that the market doesn't react in a bad way right? Everything is tied together and I don't pretend to understand it but a crash affects the everyday person more than it does the rich.

        Also the skeptic in me thinks that it's a possibility that this whole WSB was even orchestrated BY the rich (Look at who the winners are here, didn't BR make billions?) to manipulate 'us' to make more money for themselves at the expense of some other rich guys (MC/Citadel). Who's going to be left holding GME when it crashes? Not the billionaires :)

        • EightImmortals on 01/02/2021 - 09:13

          Yes you are probably right on a number of points. But I would add that the collapse has been coming for years, the whole system has been on life support since at least 2008 (probably longer) but has reached ludicrous levels in the last 12 months with literally TRILLIONS of dollars being created out of thin air and pumped into the markets through the usual financial black magic and voodoo to give the illusion of economic health. I think it was Max Kaiser who uses the term "Zombie Economy" (and "Zombie Banks"). If the GME event is the catalyst that is used (or blamed) to pop the bubble then so be it, they were always going to need someone/something to blame (other than the 'system' of course) and if some little guys manage to make a bit of money along the way then good for them.

          My personal dilemma is do I buy a new car now to replace my 16 year old one because hyperinflation might become a thing or will prices drop is the wheels fall off the economy? (pun)

          • coffeeinmyveins on 01/02/2021 - 09:38
            +1

            @EightImmortals:

            My personal dilemma is do I buy a new car now to replace my 16 year old one because hyperinflation might become a thing or will prices drop is the wheels fall off the economy? (pun)

            Or you lose all your money that you have in savings because the banks go tits up and you can't buy anything.

            The money you have is tied to the market, and what happens there, right?

    • isthatallyougot on 01/02/2021 - 10:37

      So the small guys have to be worried about upsetting the house of cards but the big banks can do what they want ( refer to the big short movie here ) and get bailed out. This is exactly the attitude that is fuelling the wsb guys to bring the system down.

      • coffeeinmyveins on 01/02/2021 - 10:58
        +2

        Lol I didn't say that. But to say you (the small guy) wouldn't be affected in a big (negative) way by this is to be ignorant.

  • capslock janitor on 01/02/2021 - 09:41

    im too dumb blaa to understand any of this

  • pegaxs on 01/02/2021 - 10:00
    +5

    Very hard to short squeeze something they can just dig up more out of the ground.

    The whole silver thing is just noise to divert attention and funds. They want people to sell out of GME and buy into something else.

    • cheekymonkey on 02/02/2021 - 10:31
      +1

      100%. the subreddit makes it clear, they don't want to start buying silver and to keep funds in the GME

  • isthatallyougot on 01/02/2021 - 10:35

    I wouldn't dismiss it out of hand so fast , these guys have managed to drive the price up of the silver futures 4$ in the last few days. There is a lot of anger out there amongst these guys and they want to to mess with the systems.

    Its amazing how fast all the analysts and brokers came on the news to talk about how dumb and reckless these guys are.

    • Innately Incognito on 01/02/2021 - 11:15

      Can understand why an analyst might view this as reckless as there’s plenty of potential for plenty of retail investors (esp jumping in now) to suffer losses if they hold too long (which is likely).

      However, given the posts I’ve been reading on WSB it’s transitioned from an investment strategy to a movement. A lot of the people posting are happy to take the loss if it exposes and shakes up the financial systems.

      Keep in mind a similar crowd managed to push $DOGE to approx #7 by market cap.. so anything’s possible. Suspect this will die down horribly when they go after something and enough people get burnt.

      • coffeeinmyveins on 01/02/2021 - 12:26
        +1

        A lot of the people posting are happy to take the loss

        And I bet a lot of them are playing with paper wins to fund this. No average joe is going to be OK with losing thousands of dollars, if they are, they aren't average Joes ;)

        And let's not forget that WSB isn't immune to manipulation like we've seen in recent years. Who's to say that this isn't a hedge fund funded scheme and those are troll accounts to guide sentiment on the subreddit, tricking actual average joes into losing their money? Wouldn't be the first time.

        But power to them if it works. (profanity) hedge funds.

        • [Deactivated] on 01/02/2021 - 12:56

          Have you been on /r/ASX_Bets? Average Joes are definitely OK with losing thousands. A couple grand is like what, a months savings after bills and expenses? It's really not that much money.

          • coffeeinmyveins on 01/02/2021 - 13:35

            @[Deactivated]:

            A couple grand is like what, a months savings after bills and expenses

            uhhh I don't think that's what "average" means. If you're able to throw around a couple of grand like it's nothing then you're not "average".

            And a sub-reddit dedicated to investing such as the one you listed doesn't provide an accurate cross section of society as a whole IMHO.

            • [Deactivated] on 01/02/2021 - 13:38

              @coffeeinmyveins: Isn't the average fulltime salary around $85,000 and the median full time salary around $73k? Those salaries will definitely net you at least $2k/month in dispoable income to piss onto the ASX if you're not living above your means. Correct me if I'm wrong, please.

              • coffeeinmyveins on 01/02/2021 - 13:41

                @[Deactivated]: I guess we're splitting hairs here and it depends on the individual.

                If you're saving for a house, have dependants or are the sole provider for your family, then $2k a month goes very quickly toward those things and the idea of disposable income becomes something that might not be a reality.

                I'm in a position where I take home almost 10k a month and even I wouldn't consider throwing $2k around like it's nothing - but that's just me.

                • [Deactivated] on 01/02/2021 - 13:44

                  @coffeeinmyveins: Yeh, completely agree that it would depend on each person's situation.

                  I'm in a position where I take home almost 10k a month and even I wouldn't consider throwing $2k around like it's nothing - but that's just me.

                  I assume you're more of a risk averse type of person who prefers the slow and steady ETF style of investing though? I definitely don't bring home 10k/month and have no issues pissing $2k on the asx with some meme stocks. But I'm still young and have many more years to earn $.

                  • coffeeinmyveins on 01/02/2021 - 13:51
                    +1

                    @[Deactivated]: I've thrown money in BTC and other risky investments, sure.

                    But I'm still young and have many more years to earn $.

                    Yep. When you have dependants, mortgage and other expenses you haven't even thought of, your appetite for risk will change.

              • Innately Incognito on 01/02/2021 - 15:21

                @[Deactivated]: Speaking from experience, the people that quote these statistics tend to lie on the right side of the curve 😂

                As much as I think I've a good idea of 'average' I am 99% sure my idea of average is horribly warped. And that's even when I'm trying to account for the distorted view I've got based on my social circles.

  • cheekymonkey on 02/02/2021 - 10:30
    +2

    to be clear - WSB is NOT advocating to buy silver. they've made that very clear in the subreddit. but it seems all the media is saying they are and others are jumping in, which is driving the price up.

    • ATangk on 02/02/2021 - 18:14
      +2

      Just look at the profiles of anyone advocating. Its just the same comment copy pasted, no effort at all, almost like the spam that takes up FB comments nowadays.

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