(Kitco News) Silver has received unprecedented attention this week. But one big misconception in the whole silver saga was that the Reddit community was united in the call. In fact, most of this week’s Reddit reports warned against buying silver because it was a distraction from the original GameStop game.
So let’s see why the silver rush did not occur and why prices fell after hitting briefly over $ 30 per ounce.
First, the main problem was that the silver market is more liquid, which makes it very different from plays like GameStop.
Second, the sheer size of the silver market is another major obstacle. If we look at the average daily volumes on Comex silver since the beginning of 2020, it amounts to about $ 11 billion dollars.
And third, the Reddit disagreement. The Wall Street Bets community even took down the famous post titled ‘The Biggest Short Print in the World is in SLV’, which apparently caused the whole move in silver.
However, analysts remain confident that silver will reach the $ 30 dollar mark and move closer to $ 50 this year. Why? Supporting macro forces – more industrial demand, Biden’s pursuit of green technology as well as silver’s safe haven properties.
On top of that, all this attention from new investors will bring more people to space, who have been left behind with gold for some time.
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