1. The silver market is one of the most manipulated markets in the world. The banking giants (JPMorgan, Goldman Sachs) have large silver positions to cover real inflation.

2. Whether at the industrial or monetary level, silver is the asset of choice to combat the current increase in global inflation.

3. As inflation intensifies, the price of silver should be adjusted to $1,000 instead of the current $25.

4. If income is not what attracts you the most, then it might not be a bad idea to "destroy" giants like JPMorgan Chase together.

The poster on the Reddit investment discussion forum said that he would not buy SLV until the rise in GameStop (GME) stock price ends. The post explained the long SLV position from the perspective of supply, demand and fundamentals, and then gave a comment. Series of Actionable Suggestions:

The poster suggested accumulating SLV (or PSLV) and SLV call options to force shorts to take physical delivery of silver and squeeze shorts.

In the silver futures market, the ratio of book-traded silver to physical silver fluctuates between 100:1 and 500:1, with an average value of 250:1. This means that for every 250 ounces of open interest in the futures market, only 1 ounce of physical silver has actually been delivered.

As long as we can force more futures contracts to take physical delivery, we can squeeze the silver shorts.

There is very little physical silver in the warehouses of the New York Mercantile Exchange that can actually be delivered. If they have to start buying silver collectively on the open market, it will push up the price of silver significantly. Deliverable physical silver doesn’t appear out of thin air.

If the short party in the futures contract has no way to deliver physical silver, the short party can only choose to transfer the futures contract to the next person, and if the next party does not have enough physical silver, it will continue to change hands - All short sellers want to sell their positions to someone who actually has silver. My goal is to ensure that we have physical silver on hand and not sell it to them, which will drive the price of silver higher and higher as supply exceeds demand.

From a fundamental point of view, silver has a basis for price increases: silver reserves and prices deviate.

The current gold-to-silver ratio is around 70, which means that the price of gold per ounce is 70 times the price of silver. However, the reserves of natural silver are only 18.75 times that of gold, so the ratio of 70 times is quite high.

The current production ratio of silver to gold is even lower, only 8:1, which means that for every 1 ounce of gold produced in the world, only 8 ounces of silver are produced.

For a long time, with the changes in the world's monetary system, governments of various countries have dumped silver into the market, and newly produced silver has also been decreasing, resulting in a serious shortage of silver supply. At the end of World War II, there were 10 billion ounces of silver in government vaults around the world, but now the amount of silver held by governments has been reduced to only 240 million ounces.

At the same time, the industrial demand for silver is high, and most of the newly produced silver produced every year is used for production rather than investment. Silver is used in electronics, solar panels and jewelry.

In addition, the total market value of silver is low and easy to control.

The price of silver is around US$25, which means that the total market value of all investment-grade silver in the world is only more than US$70 billion. By comparison, global investment-grade gold is worth about $6 trillion.

70 billion US dollars sounds like a lot, but it is not much. As long as a small amount of money is injected, it can rise. Retail investors on Reddit made more than 20 billion US dollars on GME.

In addition, inflation and currency devaluation will increase the demand for silver.

The frantic money printing by the U.S. government and the Federal Reserve has reduced the value of the U.S. dollar, so investors will turn to other safe-haven assets, driving demand for silver. The $1.9 trillion stimulus package in the near future may boost this demand. The combination of bailout money and a reopening of the economy is likely to lead to a steady rise in inflation, which, once it starts, tends to cycle on its own.