Turmoil! A Short Squeeze of Gold and Silver?
Gold keeps hitting new record highs! It’s evidence of serious turmoil.
Gold is a sensitive indicator of trouble. Sometimes the price of gold starts moving before the actual evidence of trouble becomes clear.
But then the dust settles!
Foreign central banks loading up, gold shortages, currency wars, and overseas exchanges scrambling to get their hands on more gold, along with one new high after another… these are important signs that changes are underway. They are wake up calls!
In the US buyers are wondering about eventual tariff pressures, so gold is being delivered to the US from both Europe and Asia. 435 tons of gold has been recalled from London to New York. That is $82 billion of gold moving to the US where many buyers are taking physical delivery on futures contracts.
Delivery bottlenecks are widely reported. A Dubai-based bullion dealer told Reuters,
“The U.S. is like a gold magnet right now, pulling in gold from all over the world.”
These are classic signs of a short squeeze. Shorts, speculators who have taken a market position betting on lower prices, eventually have to pay higher and higher prices to deliver the metals they have borrowed. A short squeeze is a market development that can drive prices to stratospheric heights.
Signs are beginning to appear that a short squeeze is in development in the silver market as well. There are signs of stress in a leading silver Exchange Traded Fund (ETF).
The Silver Academy, a Substack letter, reports, “The silver market is experiencing unprecedented turmoil, with recent developments in the iShares Silver Trust (SLV) ETF painting a picture of extreme market stress.”
The letter describes a volatile imbalance in the SLV options market: “With 4.7 million shares potentially needing to be delivered and a mere 10,000 available to borrow, the imbalance is profound. This situation could force short sellers into a corner, potentially triggering a significant short squeeze and driving silver prices higher.”
We continually advise people to avoid needless risk and to own real, tangible gold and silver rather than ETFs and other paper representations found in gold and silver market.
Remember that unlike paper representations of gold and silver, physical gold that you can hold in your hands is not anyone else’s liability.
In times of turmoil, you will want… you will need to own precious metals! And with all the signs of possible short squeeze that can drive prices to stunning new heights, now is the time to protect yourself and profit with physical gold and silver. That is the safety zone!
Call, make an appointment, or stop by today. Republic Monetary Exchange in Phoenix, on Camelback just east of 40th Street. Just a phone call away at 602-682-GOLD.