Below, I discuss why the application of the Redditors Gamestop short squeeze strategy to exploding silver matters. In my opinion, Redditors should turn their attention to continuously buying physical silver every month (Canadian silver maple leafs, American silver eagles, and bullion bars) and taking delivery (never ever storing physical silver purchases with any large global investment firm or in a bank safe deposit box). This is the best short squeeze strategy to exploding silver prices (manufacture them) and far safer than applying a short squeeze to the paper silver ETF, the SLV. Why?
If the above video does not yet play, please come back in about 20 minutes as it may still be rendering after the upload
Below, I discuss why the application of the Redditors Gamestop short squeeze strategy to exploding silver matters. In my opinion, Redditors should turn their attention to continuously buying physical silver every month (Canadian silver maple leafs, American silver eagles, and bullion bars) and taking delivery (never ever storing physical silver purchases with any large global investment firm or in a bank safe deposit box). This is the best short squeeze strategy to exploding silver prices (manufacture them) and far safer than applying a short squeeze to paper silver futures markets, an idea which has also been making the rounds, but not a good idea in my opinion.
Currently, doing so would require putting up $15,400 to buy one contract and maintaining a margin value of at least $14,000 (In gold, platinum and palladium the initial and maintenance margin pairs, as of 1 February 2021, are respectively $11,000/$10,000; $3,630/$3,300; and $29,700/$27,000). In the futures market, the CME (Chicago Mercantile Exchange) can, and has arbitrarily changed these margins on all precious metal futures contracts to chase long holders out of their positions. And if prices go down, and you’re long, you have to come up with more money (the margin call) to remain in your position. Otherwise, your position will be automatically liquidated. This is a prime example of applications of the short squeeze strategy to exploding silver not being equal.
Consequently, when trading futures, if significant price volatility in the opposite direction occurs within 24 hours of opening a position, you can easily be chased out of your position, or margins can be adjusted higher to artificially force liquidations and plunging prices. Therefore, this is NOT a game for any novice to play and unlike, holding a long position in Gamestock shares, where one’s losses are limited to the investment in the stock even if the stock goes to zero, in the futures market, one’s losses can be multiple times the initial investment.
And mark my word, it is near guaranteed that the CME will be raising margins in gold, silver, platinum and palladium futures soon, perhaps really soon, if they fear a counterstrike happening in futures markets. The CME executed such a dishonorable strategy in May 2011, when they raised silver margins by 84% over a course of five raises in nine days that smashed silver from a high of about $50 an ounce all the way back down to near $32 in just a matter of days before eventually nearly halving the price by that September.
To quickly get up to speed, all Redditors should read all of the following articles I’ve written over the past 15 years that contain valuable information to the strategies they are executing today. They should also bombard all precious metals dealers, starting today to show a spine, backbone and some integrity for once (as explained in the below article). It is important to engage precious metal dealers in this mission, because without their participation our noble mission will fail. I cannot stress this enough.
Precious Metals Dealers: If the CME Artificially Creates Dips in Paper Gold and Silver Futures Prices by Raising Margins, Stand Your Ground
Want to Smack Down the Criminal Banking Cartel? Here’s How to Use Gold and Silver to Do It, August 2012
Bullion Banks Continue to Hemorrhage Physical Gold, and Now, Also Physical Silver, August 2020
Use the Silver Dip to Buy MORE Physical Silver, May 2011
How Can You Help? Buy 10 Ounces of Physical Gold and Silver (Or Whatever You Can), May 2013
John Kim on Max Keiser, Discusses Banker Manipulation of Gold & Silver Futures, June 2011
If you know which silver Reddit threads I would be most useful spreading my knowledge that has been gathered from 20 years watching and observing banker price manipulations in silver markets, please visit my above video on YouTube and write the names/links to the Reddit threads!
For those of you that would like to contribute to my 100% supporter/content consumer funded sites here, on youtube and at podbean, please consider becoming an skwealthacademy patron here. Also, you may contribute to my gofundme campaign here, to help me launch my new online academy, coming soon. Read my fact sheet about my coming academy here. Finally, please subscribe to my free podcast here.
#Redditorsilvershortsqueeze #silvershortsqueeze #eattherich #SLVshortsqueeze