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 Replies: 63 / Views: 9,290 |
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Pillar of the Community
United States
711 Posts |
I'd link the threads, but the language on reddit isn't appropriate for CCF.
Short version they feel silver is shorted and there was a lot of talk of taking silver to the moon. Kind of confirming in how silver has moved yet gold really hasn't as much since they started having this conversation.
Anyway, to add some content other than the short version and not make this a tease thread, here is a paste of the original post that led to 1000's of comments on buying silver and sending the price up and up. Comments from people that just did this to GameStop and a host of other stocks.
Might be worth watching and could have some good commentary here so I wanted to share after the whole GameStop thing.
***START ORIGINAL WALL STREET BETS THREAD PASTE***
Silver Bullion Market is one of the most manipulated on earth. Any short squeeze in silver paper shorts would be EPIC. We know billion banks are manipulating gold and silver to cover real inflation.
Both the industrial case and monetary case, debt printing has never been more favorable for the No. 1 inflation hedge Silver.
Inflation adjusted Silver should be at 1000$ instead of 25$. Link to post removed by mods.
Why not squeeze $SLV to real physical price.
Think about the Gainz. If you don't care about the gains, think about the banks like JP MORGAN you'd be destroying along the way.
Edit 1: ALL IN ON $AG. LETS GET THE MINERS.
Edit: $AG UP 40% PM.
Tldr- Corner the market. GV thinks its possible to squeeze $SLV, AFTER SEEING $AG AND $GME EVEN I THINK WE CAN DO IT. BUY $SLV GO ALL IN TH GAINZ WILL BE UNLIMITED. DEMAND PHYSICAL IF YOU CAN. INCLINED PLANE AROUND A CYLINDER THE BANKS.
Second (first was the above paste / thread), everyone buy and hold GME through at least $1000 before buying silver because the shorts are still at 139% of the float so there is a technical reason to stay long until they really cover.
Third, the other post said to buy miners, but that won't cause a silver squeeze. The miners will benefit from the squeeze, but buying miners alone does nothing to actually beat the manipulating banks at their own game in silver.
So here's how you do it:
Buy SLV directly. If you want options buy in the money or near the money to force true hedging (buying) by the market maker. This is a very old and slower moving market than equities so unless you are buying leaps, SLV shares are the way to go anyways.
Alternatively, buy silver physically or even force delivery through purchasing futures if you are rich and can store it.
Physical silver purchases carry a premium over spot price though so you end up causing more physical silver to be purchased by simply buying SLV.
By purchasing SLV, more shares will be created and SLV will have to purchase massive amounts of physical silver to hold in their vaults because the etf has to remain backed by physical silver.
Silver is a much larger market than GME, but the paper traded gold market is 100x the physical market. If we force more physical purchase and delivery of silver, the paper traders will be required to buy it in real life and deliver it. Creating a positive feedback loop just like a short squeeze.
Lastly, the fundamental case is that government stimulus combined with fed money and reopening economy will cause inflation, and that government debt loads mean dollar debasement. Lest someone say we are manipulating the market (as big banks have literally been doing for decades). We like the stock!
Let's get GME to the moon and then park all of the winnings in SLV. Could take a couple of months to fully moon as delivery of silver takes time but it really could go to $1000 from $25. If GME took down a single hedge fund, this would take down JPM.
Please share, it's hard to break through right now
Power and tendies to people!
TLDR: don't sell GME till over $1000 and then move it all to SLV and hold for 3+ months
Disclaimer: This is not Financial advice. I am not a financial services professional. This is my personal opinion and speculation as an uneducated and uninformed person.
***END EDITED PASTE***
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Pillar of the Community
 United States
711 Posts |
Having done the math in my head as to what my coins would be worth with silver going up 40x has me rooting on these guys.
You'd be talking $7 or $8000 a roll of halves.
Though I'd probably end up selling all for $1000 a roll, a nice profit, and a missed opportunity.
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Rest in Peace
United States
18456 Posts |
Are you talking about Silver collectible coins ( 90% )going up in price if silver goes through the roof . What is your opinion on that ?
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Pillar of the Community
United States
711 Posts |
Certainly the metal value would go up.
I think your asking about numismatic premium.
I think it would at the very high end for sure. For the rest of the market, perhaps.
Rising metal values would generate interest and that could spark a revival in collecting coins.
I still think demographics are massively against anything but the highest end of the numismatic premiums. More coin collectors dropping off than coming into the hobby. The existing base is likely facing the worst of inflation with medical costs and insurance.
I only like really high end stuff that interests me or bulk junk 90% silver (and old US gold).
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Pillar of the Community
United States
4846 Posts |
I'm highly doubtful WSB has the collective capital to make a meaningful impact on the price of silver beyond the small "hype" jump we saw earlier this week. The metals market is much larger and more complicated than a single security.
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Pillar of the Community
United States
5826 Posts |
Agree with Adam_E, but there maybe a small rush buy's going for silver with these rumors, some miner's stocks had gone up early today, but it dropped back.
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Bedrock of the Community
Australia
21786 Posts |
The value of the dollar dollar as we all know is not related to bullion values. The current value of silver (whatever that happens to be), is just expressed in U.S. Dollar terms.
These days the U.S. Dollar is loosely tied to the strength of the U.S. economy and thus also to U.S. labor costs.
If the price of silver goes up to $1000 over a period of 30 years, that relates to a compound inflation rate of 25% year on year, for the next 30 years.
If that that happens, the U.S. economy would be in extremely serious trouble, along with all of the population.
Perhaps guns would be more valuable than silver.
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Pillar of the Community
United States
7276 Posts |
Unless the market is cornered like was tried by the Hunt brothers in the 1980's, it's hard to affect the market. You need a lot of money to hold enough silver to influence the market, this isn't using leverage or hedging. First off when the price goes into a bubble no one will pay you the crazy rates, all the LCS/bullion dealers will hold off. Remember early in the year, silver tanked not one dealer was selling silver at the spot price. Same will happen if silver spikes, better to hold off and wait for the market to correct itself.
Trading in shorts and hedging are just ways to lose money unless you know what your doing. Reading on Reddit many are doing a YOLO (you only live once all in bet, many have lost all their savings). I'm not saying what the hedge funds are doing was right either, and in a nerdy sort of way I am gleeful that some of the funds got spanked, but long term this is market manipulation I'm pretty certain the SEC will step in. Either that or enough lose enough money that shorting will be severely curtailed.
Edited by hfjacinto
01/29/2021 9:46 pm
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Bedrock of the Community
Australia
21786 Posts |
When you are shorting a stock or a commodity you don't own it, but just borrow it.
A sell contract at a lower value in a declining market is entered into by the borrower, before the due return date to the owner. The original owner does not loose, unless he enters into a sell contract in a declining market himself,
there is only an unrealized 'paper' loss. A small fee is paid to the original owner for the borrow.
Eventually anybody that owns the stock or commodity and sells subsequently in a rising market can make a profit in the normal way.
That is one of the ways hedge funds work, and why owners of stocks or commodities like them. Although the risks are higher, statistically overall, so are the profits greater.
Personally, I think the ethics, although quite legal, are rather dodgy. Somebody is going to loose more than they otherwise should have, due to some sharp paper shuffling, with no real honest work being done.
Edited by sel_69l
01/30/2021 12:54 am
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Pillar of the Community
United States
1304 Posts |
Please overlook my ignorance on this but I am trying to learn just what is happening with this. It's my understanding that the hedge fund is betting that the price of Game Stock would continue to go down but a group on individual investors started buying share of Game Stop to make the price of the shares to go up, forcing the hedge fund to buy the stock to lower there loss. Am I right so far? So my next question is, who was the hedge fund betting against? Also, how would the hedge fund make money if they were correct that the price of Game Stop would continue going down?
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Pillar of the Community
United States
4085 Posts |
^ Wornslick:
A hedge fund borrows Gamestop shares @ $30, immediately sells them and pockets the proceeds. A portion of the proceeds has to be kept as collateral against the borrowed shares.
Gamestop later drops to $10 a share. The hedge fund buys shares to "pay back" the borrowed shares and gets their collateral back, in effect making $20/share or so on the drop.
That's how the hedge fund wants it to work. This is called "shorting" the stock.
In this situation, there were a lot of "shorts" - 140% of the total shares available.
The retail buyers got together and said, let's start buying this stock, which will drive the price up. Let's say the price goes to $60/share.
Now the hedge fund has to "cover" the short by either putting up more collateral or buying shares at $60 to pay back the borrowed shares.
This drives the price up even more. The higher the price goes, the more exposed the hedge fund becomes to having to sell other assets to meet collateral (aka margin) requirements or buying shares of Gamestop at ever increasing prices due to the demand. This is called a short squeeze.
In this case, the hedge funds were over extended on Gamestop shorts and a panic set in, requiring the hedge funds to buy Gamestop at any cost to cover their short position, driving the price insanely high.
At some point, this will all wash out, the game of musical chairs will end and those who bought high will be left holding the bag.
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Pillar of the Community
United States
2130 Posts |
KenKat...this is a very good explanation (in easy to understand terms) of what is going on. I agree with Adam E that silver is just a totally different animal than gamestop. That being said, APMEX has totally quit taking orders until later this afternoon when the markets open. They must know silver is fixing to go on a wild ride and they don't want to lose these potential profits. |
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Pillar of the Community
United States
1304 Posts |
KenKat, Yes it was a very good explanation and I understand all of it except for this sentence....
"A hedge fund borrows Gamestop shares @ $30, immediately sells them and pockets the proceeds."
How do they "borrow" stocks? And who loans it to them?
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Pillar of the Community
United States
4846 Posts |
Quote:
How do they "borrow" stocks? And who loans it to them? Brokerages fill the role of lending. If you have an account set up with a brokerage, you likely signed a hypothecation agreement which gives them the ability to lend shares owned by you for the broker's benefit. I'm not entirely sure the methods that a large hedge fund will acquire the shares, I wouldn't be surprised if they negotiate deals with brokers |
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Pillar of the Community
United States
711 Posts |
Yep, most major dealers not selling any silver at all now until they see a new market price.  .jpeg?itok gkHKvPmX) .jpeg?itok tm41J7DE) One Billion dollars came into the ETF SLV Friday, its biggest day ever.  If anyone thinks this is a bubble and has been wanting to get out, next week could be good time. It will be an interesting week for silver it seems no matter what. I'd say 30's is a given. I saw some decent calls bought at 35 on WSB. Who knows where it goes. I'm like most here and just along for the ride. |
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Pillar of the Community
United States
4085 Posts |
I've got a big bag of silver and some rolls I accumulated at around 10-12x face that I could potentially be convinced to part with if the price goes high enough!
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Replies: 63 / Views: 9,290 |
Posted 01/29/2021 6:55 pm
