A very long but good read on silver.
SLV is a complete scam, its a scalp trade set up by banks to screw over investors. Avoid it at all costs. The silver market is and has been rigged for years
WSB was never moving into silver. The media got the story wrong.
Think about who reads weekend financial news. Old people. The last time silver had a real short squeeze was in the 70s, and these people are now in their 70s. Who clicks on ads? Basically only old people. Dealers of gold and silver love to advertise, and media likes to make money through click-through revenue. Of course they are going to post all these stories of small unit silver selling out at dealers, they will get higher click through and sales kickbacks from the targeted ads on these articles.
If you are purchasing SLV thinking you are purchasing silver on the open market, you could not be more wrong. Purchasing SLV is the best way for an investor to shoot themselves directly in the face.
I have done some research on SLV and I have come to believe that it is essentially a vehicle for JPM and other banks to crush retail investors by manipulating the silver market.
So what are these games of manipulation that the banks have played?
The general theme could be described as this: If banks hold the silver, the price is allowed to rise, but if you hold the silver, the price is forced to fall.
Jeff Currie from Goldman had an interview on February 4th where he dismissed the idea of a silver short squeeze, and he had one line that was especially profound,
“In terms of thinking how are you going to create a squeeze, the shorts are the ETFs, the ETFs buy the physical, they turn around and sell on the COMEX.” – Jeff Currie of Goldman
This was shocking to holders of SLV, because SLV is a long-only silver ETF. They simply buy silver as inflows occur and keep that silver in a vault. They have no price risk, if the price of silver declines, it’s the investors who lose money, not the ETF itself, so there is no need to hedge by shorting on the COMEX. Further, their prospectus prohibits them from participating in the futures market at all. So how is the ETF shorting silver?
They aren’t. The iShares SLV ETF is not shorting silver, its custodian, JP Morgan is shorting silver. This is what Jeff Currie meant when he said the shorts are the ETFs. Moreover, he said it with a tone like this fact should be plainly obvious to all of the dumb retail investors. He truly meant what he said.