Boiler Room: The Official Stock Market Discussion

FabTrey

FabTrey

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Fools think squeeze won't happen
The Next GameStop: Silver Bullion? | The Motley Fool

Squeezing silver? Won't happen
There are a couple reasons why investors shouldn't expect any sort of functional squeeze on the silver market. First, commodities markets are much larger than the market capitalization of GameStop. There's plenty of actual physical metal available for both bullish and bearish traders to use.

Second, silver has been the subject of a squeeze before, so regulators are attuned to the signs of any sort of manipulation. In 1980, three brothers in the Hunt family sought to corner the silver market, capturing roughly one-third of the tradable supply of silver. That prompted a huge silver price increase, from around $6 per ounce in early 1979 to nearly $50 per ounce just 13 months later.

However, when the commodities exchanges changed the rules governing use of margin, the heavily leveraged Hunt brothers found themselves unable to pay back their debts when the price of silver started to drop. The resulting plunge sent bullion prices back down to the $5 to $10 range (per ounce) from the mid-1980s all the way until the late 2000s.


Also, unlike GameStop stock, millions of people have items made of silver. During past price spikes, massive numbers of people have taken silver items to coin dealers, pawn shops, and others to turn them into cash. No one on Reddit can control that big a market.
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still thinking about buying some SLV for my itchy finger.
 
M

Mirin4rmfar

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NatiboyB

NatiboyB

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Mirin4rmfar said:
Still no confirmation yet. Some people are waiting until if gets confirmed to buy. From twitter people are anticipating another merger monday. Lol probably won't happen.
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oh ok I have my shares I’ve been bloody Red on them until Friday it finally went up a bit...a merger would definitely help not sure how high it can go but I will be getting rid of this position once it’s profitable (TSLA, NIO are my long holds)
 
KalKal

KalKal

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No Whammies!!
Mac Milli said:
What does everyone think of the silver squeeze? Is this legit?

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I don't know if the retail investors can REALLY move the price of silver. But I'll benefit if it happens.
Last year I heard about what the Hunt brothers did back in the early 80's, and I started to buy up SLV calls.

Right now I have a bunch of $34 SLV LEAP options, as well as $30 SLV calls that expire this summer. I would love it if somehow it spikes up.
 
Eternal Tecate

Eternal Tecate

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winb83 said:
No it wasn't. If there is a massive wave of brokerage failures and clearing house failures who does that hurt?

You can debate how we got to this point all you want later but right now we are where we are. Sometimes in order to save innocent people you have to save everyone including the villains. This was such a case.

If you worked your whole life and have a 401K worth $1 million or something and are about to retire do you deserve a $500K payout and that's it because a hedge fund tried to run Gamestop into the ground and reddit wanted to go to war with them?

Some people have their whole life savings tied up in the markets in safe stable companies and don't deserve to have the rug pulled from under them cause some reddit users wanted to blow up our economy.
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401ks have risk too :yeshrug:name of the game
 
Insensitive

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WSB fever has seemingly infected every website I visit and seeped over into the real world.
My moms is asking me about what I invested in.
My coworkers are talking about it all the time (young and well paid with disposable income :pachaha: )
It's on the news, all over youtube, instagram, facebook etc.

shyt is wild to see how this completely blew up.

What's even wilder is to see how that informational edge hooked several of us in here up. :whew:
Interesting month we've had man.
:pachaha:
Capital stormings, battles with hedge funds, army in D.C. etc.
 
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