(Kitco News) Silver received unprecedented attention this week. But a big misconception throughout the silver saga was that the Reddit community was united in the call. In fact, most of this week’s Reddit posts warned against buying silver because it was a distraction from the original GameStop game.
So let’s take a look at why the silver squeeze didn’t happen and why prices fell after climbing above $ 30 an ounce briefly.
First, the main issue was that the silver market is more liquid, which makes it very different from games like GameStop.
Second, the sheer size of the silver market is another major obstacle. If we look at the average daily volumes on Comex silver since early 2020, they come out at around $ 11 billion.
And third, the Reddit disagreement. The Wall Street Bets community eventually even removed the famous post titled “ The World’s Biggest Short Squeeze Is In SLV, ” which seemed to have triggered the entire move to silver.
Still, analysts remain confident that silver will hit $ 30 this year and move closer to $ 50. Why? Supporting macroeconomic forces – increased industrial demand, Biden’s move towards green technology and the safe haven of silver.
Plus, all this attention from new investors will no doubt draw more people to the space, which has been lagging behind gold for a while.
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