What the Silver Short Squeeze Means For the Future of the Market

What the Silver Short Squeeze Means For the Future of the Market

February has been a wild ride for silver, to say the least. The month started off strong, with the silver market experiencing significant demand just one week after the GameStop short squeeze fueled by a subreddit group on Reddit, WallStreetBets, made headlines.

While the momentum in the silver market may have subsided, however, this development is important because it reveals a new phenomenon: increased silver awareness. In a world so charged by technology, it appears the people have mobilized the tools that we use on a day-to-day basis to spark change in avenues that were once thought untouchable. Wall Street awoke to realize the potential of Main Street investors to drive markets and create noise, and it all started on Reddit.

The recent chaos in financial markets symbolizes a growing awareness, globally, of the corrupt forces that control the world's exchanges. Silver, specifically, has been at the center of this, known as the most undervalued asset in modern history. Today, on an inflation-adjusted basis, silver is cheaper than it was during the Great Depression. Something doesn't add up, and more people are waking up to that fact because the WallStreetSilver subreddit has taken up the mantle of bringing education and awareness to the marketplace of ideas.

What more silver awareness means for the future of the market

While GameStop's short squeeze materialized quickly in numbers, silver is an entirely different asset class. As a commodity, its derivatives vary, with futures, options, and ETFs revealing different diversions from physical silver. This, in addition to over-the-counter silver derivatives, which are less transparent, means the market is far more complex than that of stocks like GameStop or AMC Entertainment.

For that reason, some might be deterred due to the lack of quick returns. However, it is important to recognize that with this renewed interest in the precious metals space has come an increase in awareness and knowledge surrounding silver. People are becoming more aware of the benefits of purchasing and holding silver, be it in physical or digital form. The silver awareness has spilled over and shed light on just how corrupt the whole system has become.

The internet is what has made that possible; it has given individuals around the world a platform to be able to openly discuss the realities of the modern financial system and educate themselves about what path to take to preserve their hard-earned currency. On top of that, as I have spoken about before, silver is crucial in a high-tech society, and it seems that now it is the high-tech society it helps fuel that is giving it the spotlight it has deserved for years.

Above everything else, silver remains a strong hedge against uncertainty, as an asset with inherent value. Compared against the dollar and global currencies, which continue to be printed towards worthlessness, it will remain the superior asset to hold in times of financial instability, alongside gold.

I discussed the silver short squeeze in more detail at the recent virtual Gold and Alternative Investments Conference, and touched on where I believe the silver price is headed in the future. You can watch the full interview here.

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