Sunday 31 January 2021

Short squeeze in silver

Physical silver is a small market. A short squeeze can drive the price of silver up by a massive percentage.

How to cause a short squeeze?
  1. Buy physical silver and take possession of the same.
  2. Forget SLV, PSLV, etc. Forget silver mining companies. Forget any derivatives of silver. Digital silver and its derivatives can be created out of thin air.
  3. Be prepared to hold your physical silver for many months. In the short run, silver shorts can cause a price drop.
There are almost no risks to this strategy. Silver can never go to zero. Central banks are creating massive amounts of currency out of thin air. Hence, silver prices will rise in the long run.

Buy silver, not to bankrupt some bank or hedge fund. Buy silver because it is real wealth, a hedge against inflation.

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