Silver Bull Resources Inc (SVBL)

[basserdan]

Hi-ho, Silver! Away!

The market moving power of amateur traders is continuing into the new week as the WSB/Reddit crowd turns their on sights silver after pumping up shares of GameStop (GME) and other heavily shorted stocks. COMEX silver prices are up 11.2% to $29.92/oz., the highest level since mid-August, following a 6% jump last week that boosted silver mining firms. On Friday, almost $1B already flowed into iShares Silver Trust (NYSEARCA:SLV), the world's largest ETF backed by silver, according to fund sponsor BlackRock (NYSE:BLK).

U.S. bullion broker Apmex has also disclosed a 1-3 day delay in processing silver transactions, while Money Metals and SD Bullion warned of unprecedented demand. Some on Wall Street were already positive on silver's outlook as part of a broad upswing in raw materials, with Goldman Sachs calling last week for a $30/oz. price target. Others, like analysts at Commerzbank, see the latest retail frenzy "not lasting all that long."

Premarket: First Majestic Silver (NYSE:AG) +40%, Pan American Silver (NASDAQ:PAAS) +17%, Coeur Mining (NYSE:CDE) +23%. Elsewhere, COMEX gold is up 1% to $1868.20/ounce, while palladium is 3.7% higher.

Bigger picture: This squeeze here is aimed at banks by forcing physical delivery of silver into vaults. The Silver Trust ETF is backed by physical silver, meaning the precious metal needs to be purchased when new investments are received. However, retail traders may find it harder to influence silver prices, compared to a single stock, given the large off-exchange market for the precious metal in which banks trade on behalf of clients.

Flashback: In 1979-80, the Hunt brothers attempted to corner the silver market by buying up one-third of the entire world supply (other than that held by governments). Within a year, the price for silver jumped 713% to a record high of $49.45 per troy ounce, but later collapsed in an event called "Silver Thursday." COMEX adopted "Silver Rule 7," which placed leverage restrictions on the purchase of commodities on margin, and the Hunt brothers had borrowed heavily to finance their purchases. (70 comments)

https://seekingalpha.com/article/4402389-wall-street-breakfast-hi-ho-silver-away