With all the hype around Wall Street bets In stocks like GameStop, AMC, blackberry and few others I got excited when they talked about silver. However, the controversy around the subject and it seems I may have been played by the manipulators at Wall Street. I have a long and contentious path what’s the stock ticker SLV. I’ve been burned more times than I can count and I keep telling myself clear clear, but but I heard there was a possibility to screw over the big banks and create it’s silver short squeeze I had to bit at the chance.
I currently own about 20 shares of SLV, five shares of AG and and approximately 30 contracts on SLV. I also purchased physical Silver before prices skyrocketed.
I went into the trade early on Thursday I open my position then which is the only thing I have going for myself at this time. I’m also a big believer in risk management so on Friday when Silver jumped for the first time I took my principal out of most of the contracts. On Monday I got excited to see silver jump and break an eight year high. However, I was disappointed with the options only open up a bit considering on a 5% move I was up nearly 1000% where was nothing on the 8% move. My options contracts barely doubled due to increased IV. On Monday right before close I sold one or two contracts telling myself that there’s no way CME and JPM would manipulate this with so many eyes on it. Well I can admit I was wrong and the dreaded 2 AM margin increase at CME happened which triggered an 8% slide in silver and SLV. All my contracts were obliterated while AG took the brunt of it as it was down 23%…
My thesis on silver was not solely based on the wall street bet rumor. I have always believed in silver and think it is under value compared to gold. Additionally, the industrial needs for silver are increasing at an exponential pace. I called around local coin shops and coin dealers to confirm what I was seeing online. Most retail quantities of silver are gone and supply is very tight which the spot price at these shops and site is almost $40 an ounce which is way above what silver and Slv are trading at.
The counter argument to this thought is there bias in what I surveyed. That means retail supply is limited, but big banks can get large quantities without issue which I don’t necessarily believe.
I do not believe that they’re gonna squeeze silver to $1000 an ounce, but $30-$50 an ounce is extremely realistic in my mind. I have believed this for the last two years that I’ve traded silver. However, I’m continually come up wrong. Maybe this time will be different…
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