

Silver or GameStop?
We weren’t kidding when we said, “They are game-stopping silver.” When silver futures were ascending over $100 per ounce, we described the market as being “Gamestopped.” At the time, there was criticism of this opinion, suggesting it was not possible to manipulate a massive global commodity market such as silver in the same manner as an off-the-grid stock could be. However, we stand by our assessment. The silver market is not nearly as liquid as the masses assumed it to be. On a good day, the front-month futures contract might trade 80,000 to 100,000 contracts, but on a quiet day, it might only trade 30,000 to 50,000 contracts. To put this into perspective, the most liquid contracts, such as the E-mini S&P 500, range between 1.5 and 2.5 million contracts traded, and the 3-month SOFR trades 5 to 6 million contracts daily. In my view, silver is small enough to be overtaken by online trading sleuths and was likely the target of an online pump-and-dump scheme. Find additional comments on our Substack. #silver #gold #metals #precousmetals #commodities #gld #slv
