2. Silver is the first choice to fight the current global inflation, both at the industrial level and the monetary level.
3. With the aggravation of inflation, the price of silver should be adjusted to 1000 dollars instead of the current 25 dollars.
4. If profit is not the most attractive place for you, it is ok to "destroy" a giant like JPMorgan Chase together.
The poster of Reddit Investment Forum said that he would not buy SLV until the end of the rise of GameStop(GME) share price. The post expounds how to do more SLV from two aspects of supply and demand and fundamentals, and then gives a series of feasible suggestions:
The poster suggests increasing the holdings of SLV (or PSLV) and SLV call options to force short sellers to make physical delivery of silver and squeeze short sellers.
In the silver futures market, the ratio of book trading silver to physical silver fluctuated between 100: 1 and 500: 1, with an average of 250: 1. This means that only 65,438+0 ounces of physical silver is actually delivered for every 250 ounces of open contracts in the futures market.
As long as we can force more futures contracts to be delivered in kind, we can squeeze silver shorts.
There is very little real physical silver that can be delivered in the New York Mercantile Exchange's warehouses. If they have to start buying silver collectively in the open market, the price of silver will be greatly pushed up. Physical silver that can be delivered cannot appear out of thin air.
If the short seller in the futures contract can't deliver the physical silver, then the short seller can only choose to transfer the futures contract to the next company, and the next company will continue to change hands if it doesn't have enough physical silver ―― all short sellers want to sell their positions to a person who really owns the silver. My goal is to ensure that we have physical silver in our hands and not sell it to them, so that the price of silver will be higher and higher because of the shortage of supply.
From a fundamental point of view, silver has the basis of price increase: silver reserves deviate from the price.
At present, the ratio of gold to silver is around 70, which means that the price of gold per ounce is 70 times that of silver. The reserve of natural silver is only 18.75 times that of gold, so the proportion of 70 times is quite high.
At present, the output ratio of silver and gold is even lower, only 8: 1, which means that only 8 ounces of silver are produced for every 1 ounce of gold produced in the world.
For a long time, with the change of the world monetary system, governments of various countries have dumped silver into the market, and the newly produced silver is decreasing day by day, resulting in a serious shortage of silver supply. At the end of World War II, there were 654.38+000 billion ounces of silver in the global government coffers, but now the amount of silver held by the government has been reduced to only 240 million ounces.
At the same time, the industrial demand for silver is large, and most of the newly produced silver is used for production rather than investment every year. Electronic products, solar panels and jewelry all need silver.
In addition, the total market value of silver is low and easy to handle.
The price of silver is around $25, which means that the total market value of all investment-grade silver in the world is only over $70 billion. In contrast, the value of global investment-grade gold is about $6 trillion.
70 billion dollars sounds like a lot, but it's actually not much. As long as a small amount of money is injected, it can rise. Retail investors on Reddit earned more than $20 billion in GME.
In addition, inflation and currency devaluation will increase the demand for silver.
The US government and the Federal Reserve printed money wildly, which led to the depreciation of the US dollar. Therefore, investors will turn to other safe-haven assets to boost the demand for silver. The recent $65,438 +0.9 trillion stimulus plan may boost this demand. The combination of bail-out funds and the re-opening economy may lead to a steady rise in inflation, and once inflation begins, it will often achieve self-circulation.