By Orbex
Silver prices slipped sharply lower in early trading on Tuesday. The precious metal reached an 8-year high on Monday, with prices rising slightly above the key psychological level of $30 per ounce.
Over the weekend, the hashtag “#silversqueeze” was trending on Twitter and on Monday, the mainstream media widely reported an attempted ‘silver squeeze’ by retail investors, such as those on Reddit’s Wall Street Bets sub.
However, many on the popular discussion and social news aggregation website now reject the idea. A popular Wall Street Bets thread suggests that the silver squeeze is a ‘hedge-fund coordinated attack’ – an attempt to distract investors from their long positions in GameStop (GME).
Mohamed A. El-Erian, Chief Economic Adviser at Allianz, highlighted the differences between a short squeeze in GameStop and silver in a tweet:
Free Reports:
Download Our Metatrader 4 Indicators – Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
#GameStop and #silver are not the same for those pursuing the short squeeze trade The silver market is much larger; Existing shorts are smaller; Some of the #HedgeFunds that are short #GME are said to be long silver Bottom line: A dissimilar trade that eats away at #GME gains
Meanwhile, retail websites for buying silver bars and coins such as Money Metals, SD Bullion, JM Bullion and Apmex were swamped with demand over the weekend. Speaking on Bloomberg TV, Tyler Wall, president and chief executive officer at SD Bullion, said: “Pretty much physical silver is almost all gone in terms of live inventory.”
The feverish buying also extended to silver mining stocks, with companies such as First Majestic (AG) and London-listed Fresnillo soaring in Monday trading. On Friday, the iShare Silver Trust (SLV), the world’s largest silver-backed exchange-traded fund (ETF), saw a record single-day inflow of almost $1 billion.
The Commodity Futures Trading Commission (CFTC) Acting Chairman RostinBehnam stated on Monday that the CFTC is “closely monitoring recent activity in the silver markets”, adding that it is “communicating with fellow regulators, the exchanges, and stakeholders to address any potential threats to the integrity of the derivatives markets for silver, and remains vigilant in surveilling these markets for fraud and manipulation.”
By Dan Blystone, TradersLog.com
By Orbex
- WTI oil declines on rising inventories and negotiations between Israel and Hamas. Rising unemployment in New Zealand may force RBNZ to start cutting rates earlier May 1, 2024
- Bitcoin stumbles below $60k ahead of Fed May 1, 2024
- Expert Says Now Looks Like a Good Time To Buy This Renewable Energy Stock Apr 30, 2024
- Optimism over corporate earnings is fueling stock indices. The Hong Kong index reached a 5-month high Apr 30, 2024
- FXTM’s Copper: Hits fresh two-year high! Apr 30, 2024
- European indices grow on the ECB’s “dovish” position. Quarterly reports of mega-companies support the broad market Apr 29, 2024
- Japanese yen shows volatility amid speculation of intervention Apr 29, 2024
- COT Bonds Charts: Speculator Weekly Changes led by 5-Year & 10-Year Bonds Apr 28, 2024
- COT Stock Market Charts: Speculator Bets led by VIX & Russell-Mini Apr 28, 2024
- COT Soft Commodities Charts: Speculator Bets led by Corn & Soybean Meal Apr 28, 2024