On the heels of the Reddit trading army entering the silver market, here is an update on a wild day of trading in silver.
January 28 (King World News) – James Turk out of London: Big day today in the precious metals, Eric, particularly silver. Gold is doing okay as well but the February option writers have been trying to keep a lid on the gold price.
It is interesting to compare silver to what’s happening in Gamestop. The buying in Gamestop began when the company may have already been overvalued by normal metrics. Silver on the other hand is undervalued, so if a short squeeze were to develop, the buying in silver is starting from a lower base. Logic says that starting from a lower base may give silver relatively more upside potential…
To hear Sean Boyd discuss $3,000 gold and the big game-changer
for the gold market CLICK HERE OR ON THE IMAGE BELOW.
I gather from what I have been reading that traders are focusing on SLV, the silver ETF. However, I personally do not own SLV and would recommend staying away from it if you want to own an ETF as close as possible to physical silver.
SLV’s prospectus says: “The assets of the Trust consist primarily of silver…” but primarily does not mean 100%.
Also, SLV’s 10Q says it owns “Investment in silver” instead of just saying “Silver”. By saying “investment” a lot of possibilities are opened including paper-silver, which is not a tangible asset.
In contrast, if you read the Annual Report of PSLV, it says it owns “Physical silver bullion”. So it makes more sense to buy PSLV if you want to buy silver through an ETF.
Bullish Sign
What we need to do now is see how this all unfolds over the next day or two. Having said that, volatility is usually a bullish sign and we are seeing plenty of that in silver. King World News note: As Alasdair Macleod and James Turk noted over the weekend in their KWN audio interviews below, this is options expiration week for the metals. Meaning, if you watch the action today, the bullion banks are trying to cap the rise in silver and have already pressured gold into negative territory. This is typical manipulation being orchestrated by a criminal syndicate of banks. The good news is that the momentum and volume should result in much higher prices no later than next week.
To listen to Alasdair Macleod discuss the fact that there is virtually no liquidity in the London silver market which may lead to a massive short squeeze in silver as well as the Reddit and Robinhood army of traders entering the silver market CLICK HERE OR ON THE IMAGE BELOW.
BULLISH ON SILVER: To listen to Rob Arnott, the man who helps oversee $160 billion, discuss why the silver market could be the next to skyrocket and much more CLICK HERE OR ON THE IMAGE BELOW.
James Turk discussed the silver cup and handle formation and why we’re headed into a mania in the precious metals, to listen to his powerful audio interview CLICK HERE OR ON THE IMAGES BELOW.
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