Recently, silver prices have skyrocketed. Don't think it's just factories stockpiling for jewelry; the truth is even more exciting! The global annual silver production is 27,000 tons, with 23,000 tons used in industry, seeming not scarce. But in the futures market, combined COMEX, London, and Chinese inventories capable of delivery at any time are not enough for half a month's global industrial demand. However, the big players' short positions are several times the inventory, like oversold concert tickets. $DOGE $PEPE $WIF This time, the bulls are not following the usual pattern, insisting on physical silver, which the bears can't deliver, triggering a short squeeze, and prices soaring all the way. Why isn't gold going crazy like this? Because of the size difference—silver is a small market. When big funds flood in, the spillover effect breaks through the price ceiling. This round of surge is essentially a shake-up of US dollar credit, with capital seeking safe havens. The gold and silver markets become refuges, creating a self-reinforcing cycle. When will this rally end? Either the shorts are wiped out or the longs are killed by the longs. Silver's rapid rise is a "stress test" of financial trust, with futures traders and hedge funds as the main players. Ordinary people just watch the fun and learn some logic. Follow me for more insights into financial truths!
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Recently, silver prices have skyrocketed. Don't think it's just factories stockpiling for jewelry; the truth is even more exciting! The global annual silver production is 27,000 tons, with 23,000 tons used in industry, seeming not scarce. But in the futures market, combined COMEX, London, and Chinese inventories capable of delivery at any time are not enough for half a month's global industrial demand. However, the big players' short positions are several times the inventory, like oversold concert tickets. $DOGE $PEPE $WIF This time, the bulls are not following the usual pattern, insisting on physical silver, which the bears can't deliver, triggering a short squeeze, and prices soaring all the way. Why isn't gold going crazy like this? Because of the size difference—silver is a small market. When big funds flood in, the spillover effect breaks through the price ceiling. This round of surge is essentially a shake-up of US dollar credit, with capital seeking safe havens. The gold and silver markets become refuges, creating a self-reinforcing cycle. When will this rally end? Either the shorts are wiped out or the longs are killed by the longs. Silver's rapid rise is a "stress test" of financial trust, with futures traders and hedge funds as the main players. Ordinary people just watch the fun and learn some logic. Follow me for more insights into financial truths!