(Kitco News) Silver received unprecedented attention this week. But a major 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 their original GameStop game.
So, let’s take a look at why silver compression didn’t happen and why prices fell after briefly hitting above $ 30 an ounce.
First of all, the main problem is that the silver market is more liquid, which makes it very different from games like GameStop.
Second, the size of the silver market is another major obstacle. If we look at the average daily volumes of Comex silver since the beginning of 2020, they reach about $ 11 billion.
And third, the Reddit disagreement. The Wall Street Bets community ended up picking up the famous post entitled ‘The biggest short squeeze in the world is on SLV’, which seemed to have triggered all the switch to silver.
Even so, analysts remain confident that silver will reach the $ 30 mark and approach $ 50 this year. Why? Macro support forces – more industrial demand, Biden’s move towards green technology, as well as silver safe harbor properties.
In addition, all this attention from the new investor will certainly attract more people to the market, which has been after gold for some time.
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