Sirwin
Sirwin

Why Hodling Silver is the right investment right now!


Introduction.

WallStreetBets rose out of the ashes of the American stock market and is just like the Trump vote the ultimate middle-finger to the financial elites.

The stock markets, as well as the whole financial system used to serve the American middle-class, as its single purpose was to grow American businesses by raising money and rewarding the often middle-class investor. Today, the whole system has disintegrated into a casino, according to WallStreetBets, a Millennial Generation forum based gathering, who recently placed a successful bet themselves by organizing a short-squeeze on the Gamestop stock.

This generation has witnessed how the elites mismanaged the American economy by outsourcing their industries and making China great again. The ongoing result is a series of painful and wealth-eroding effects on often their own parents' lives, including their pensions. The Reddit's r/wallstreetbets community, founded in 2012 by Jaime Rogozinski, has more than 800,000 followers in addition to 3 million unique visitors a month. By combining their efforts they have grown into a big player themselves, and knowing that the American empire's glory days are over, they are ready to cash in by focusing on assets that are artificially suppressed by short positions taken by hedgefunds and other big players, also know as Wall Street.

What is a short position?

A short, or a short position, is created when a trader sells a security first with the intention of repurchasing it or covering it later at a lower price. A trader may decide to short a security when he believes that the price of that security is likely to decrease in the near future. There are two types of short positions: naked and covered. A naked short is when a trader sells a security without having possession of it.

What is a short-squeeze?

A short-squeeze is when a heavily shorted stock suddenly begins to increase in price as traders that are short begin to cover the stock. One famous short-squeeze occurred in October 2008 when the shares of Volkswagen surged higher as short-sellers scrambled to cover their shares. During the short-squeeze, the stock rose from roughly €200 to €1000 in a little over a month. Another more recent example is the Gamestop short-squeeze, during which  WallStreetBets, started to buy up the Gamestop stock, forcing the hand of several hedge funds who now needed to buy the stock at higher valuations, resulting in a painful loss.

Silver to break $100 ounce in 2021.

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WallStreetBets is aiming at the suppressed silver market, COMEX and silver ETF's.

WallStreetBets has now discovered that they can push out big shorters with their short-squeeze tactics and are focusing on the silver-market, which has been suppressed by big parties for decades. According to Madelon Vos, WallStreetBets aims to destroy the hedgefunds. Personally I assume that's for reasons described in the above introduction, as the highly speculative hedge funds are partly to blame for certain crises, yet were bailed out. Willem Middelkoop, the well-known author of 'the Big Reset' added that he is surprised to see this move now, knowing that both the silver and the gold market have been manipulated by big Wall Street banks who have been selling non existing silver and gold paper assets for decades. There have been several court cases concerning this illegal manipulation by which these fraudulent banks attempt to create a downtrend in the gold-price by selling en masse during for example the night, to scare small investors away from a gold purchase, resulting in a low silver price.

A closer look at silver: poor man's gold.

Silver was excluded from the financial system regarding concerns of silver shortages in the 1980's. The silver market is tiny and silver has too many industrial use-cases for it to be used as money. However, silver still functions as poor man's gold and has historically been used as a currency. A silver squeeze could open the door for a similar squeeze on gold. And a gold squeeze threatens to destroy the financial system. For these reasons, both gold and silver need to be suppressed.

Because 99% of the precious metals market is paper driven, and never results in physical delivery, the futures that used to be an instrument to cover possible losses, have morphed into a Wall Street instrument to suppress prices.

WallStreetBets's first attempt was a failure but they'll try again.

Knowing that WallStreetBets is going to ask physical delivery of silver, means possible shortages and a sharp rise of silver prices. The result can be that the paper silver price remains lower, but you will not be able to find and buy physical silver at those lower prices. When asking the big banks for physical delivery, they will need to buy silver at much higher prices, resulting in a significant loss, and a victory for the little man.

However, WallStreetBets' first attempt failed. WallSTreetBets tried to ask physical deliver of silver through the professional COMEX, but the system didn't work the way they assumed, because the physical delivery of small amounts of silver is too expensive due to several costs like special delivery trucks, just to name one.

Their second attempt might be using another tactic such as buying up ETF's like the Sprott Physical Silver Trust, a silver ETF that is 100% backed by physical silver. This means that Sprott needs to buy all that silver, which will push the price of silver higher. I expect much higher silver prices, and this will be good for gold as well.

The upwards pressure on the silver price is already occurring, and it might break the back of the bullion banks who have been playing the market for decades. If that happens, $100 ounce silver is a sharp undervaluation.

Help for higher prices might yet come from the most unexpected places as China might also decide to allocate more reserves towards silver, after already being buying up all the gold they can get their hands on.

Conclusion:

With silver's dirty little secret now so openly exposed as well as discussed by reddit-ers taking aim, and with silver's strong fundamentals and technicals both pointing towards a massive breakout, the silver stacker's hard work will be rewarded rather sooner than late. I wrote this article after picking up news about silver and did some fundamental research: I hope you like it and can profit from it one day.

Disclaimer: This is no financial advice, yet my own research!

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CryptoBible00789
CryptoBible00789

Interested in cryptocurrencies and global financial system.


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