Silver Short Squeeze

Updated: Jan 31

By Bernard Baruch

Our team did some digging into the next target for wallstreetbets, and the hord of retail investors. It's getting kinda crazy out there, but every day creates new opportunities. We got a lot of calls this week from old friends we hadn't heard from in years pitching their next Gamestock moonshot. That's probably not a good sign for the stock market, and if Gamestop has taught us anything it's that there are a lot of dollars out there. Perhaps that's why inflation hedges like Bitcoin and Silver are getting more attention.


But first ...


Nothing we say or write is investing advice. Nothing in this article should be interpreted as a recommendation to buy, sell or trade any security. We are sharing for the purposes of entertainment and to connect with others that share our interest. Please talk to a professional financial advisor before making important financial decisions.


That said ...


Silver Takes the Lead in Google Trends


Google Trends for "Silver Short Squeeze" just surpassed that of "Gamestop Short Squeeze". How is that even possible? The obvious manipulation and mannia behind the Gamestop phenomenon was so big that it captured all the headlines and even caused a selloff in the broader stock market. But there it is...silver just took the lead (barely).

So we dug a little deeper and searched "Silver" on wallstreetbets. First hit has over 12,000 comments, and it was just posted 3 days ago. We read the post. Not impressive. But that's not really what matters here...what matter is if the narrative is addictive. Clearly a lot of people think so because options prices on Silver doubled the day this was published and prices on $SLV jumped 8%. That's a lot for Silver. We know because it was our biggest holdings during the runup in 2020.


#SilverSqueeze is now the top trend on Twitter. We also ran a Google Trend comparison of "Silver ETF" vs "Gold ETF" and its not even close.

The Memes are also trending...this Avenger Mockup for WallStreetBets attacking Silver already has over 100,000 views. It's not even a good video.


Link: https://twitter.com/i/status/1355542091061997570


Yesterday, January 29 ... physical silver demand from the largest silver ETF $SLV grew by 1150 metric tons. That was just one day.


But enough with the hype. Let's talk about Silver and why we were into it before it was cool.


Our wild ride with Silver


We did a deep dive into Silver in late 2019 after Tesla started running up. We realized that soler and EVs were likely to impact commodity markets so we placed some bets on Silver. During the pandemic shock our bets on Silver tanked...but we had done the research. More than 10% of the silver produced was already going to solar panel production and solar panel production was already accelerating. So we bought more silver.


Then sold some the day Gold and Silver peaked on August 7th.

We held next to zero silver until this past Thursday when we sold most of our stock and bought a lot of Bitcoin, Ethereum, and Silver.


Silver Fundamentals and Timing


We like Silver right now because of both the fundamentals and the timing given our current environment of rampant speculation and scarcity of inflation hedges.


We explain the fundamentals here on Twitter.

https://twitter.com/IntuitEcon/status/1261115199983157248?s=20


We discuss the timing for why we sold stocks and bought Silver here on periscope. https://www.pscp.tv/w/1mrGmwWwYOwxy


We also wrote an article on Silver in the Age of Electric ... covering the industrial uses of silver and why it is a critical element to the Solar, EV, and Electric Energy Revolution.

https://www.intuitecon.com/post/silver-in-the-age-of-electric


In short...we think that Silver is one of the best long and short term plays on the market today. That's not the case for most everything else that the retail in mania is chasing.


Be careful with your hard earned money. Some are losing their minds out there.


Sincerely,

Bernard


https://twitter.com/IntuitEcon


--


Full disclosure: We own the ticker $SLV $SIL $SILJ.