(Kitco News) Silver received unprecedented attention this week. But a big misconception in the whole silver saga was that the Reddit community was united in appeal. In fact, most of Reddit’s posts this week warned against buying silver because it was a distraction from the original GameStop game.
So let’s take a look at why the silver mining didn’t happen and why prices fell after hitting short over $ 30 an ounce.
First of all, the main problem was that the silver market is more liquid, which makes it very different from pieces like GameStop.
Second, the sheer size of the silver market is another major hurdle. If we look at the average daily volume of Comex silver since the beginning of 2020, they reach about 11 billion dollars.
And third, the disagreement on Reddit. The Wall Street betting community has even given up on the famous post “The World’s Biggest Short Squeeze is in SLV,” which seemed to have triggered the entire silver movement.
However, analysts remain confident that silver will reach the $ 30 mark and approach $ 50 this year. Why? Macro support forces – more industrial demand, Biden’s shift to green technology, and the properties of the silver refuge.
In addition, all the attention of this new investor is bound to bring more people into space, who have been left behind with gold for some time.
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