(Kitco News) Silver received unprecedented attention this week. But a big misconception of the whole silver saga was that the Reddit community was attached to the call. In fact, most Reddit posts this week warned against buying silver because it was a distraction from their original GameStop play.
So let’s take a look at the reason why silver pressure didn’t occur and why prices fell after briefly hovering above $ 30 an ounce.
First of all, the main problem has been that the silver market is more liquid, which makes it very different from plays like GameStop.
Second, the large size of the silver market is another major hurdle. If we look at the average daily volumes of Comex silver since the beginning of 2020, they reach 11 billion dollars.
And third, the Reddit disagreement. The Wall Street betting community even ended up eliminating the famous post titled “The World’s Biggest Short Compression is in SLV,” which seemed to have triggered the whole step toward silver.
Still, analysts remain confident that the silver will reach $ 30 and approach $ 50 this year. As for why? Solidarity macro forces: more industrial demand, Biden’s move towards green technology, as well as silver shelter properties.
In addition, all this attention from new investors is bound to attract more people to the space, which has long lagged behind gold.
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