Calls for mass purchases of silver on Monday (March 31) are gaining traction online, with proponents hoping to disrupt the dominance of main financial establishments within the treasured metals market.The motion seems to have originated from a March 22 post on X, previously Twitter, made by consumer @TheSqueakyMouse, who urged their followers to band collectively to buy silver.
🚨March thirty first, BUY SILVER🚨Lets take back price control and break the banks. Spread the phrase; who’s in. #silversqueeze pic.twitter.com/bLl0hk725D— Sqeaky Mouse (@TheSqeakyMouse) March 22, 2025
The message rapidly gained momentum, significantly after being amplified by analyst Jesse Colombo. Colombo, who posts on X beneath the deal with @TheBubbleBubble, has been vocal about what he claims is a longstanding suppression of the silver price by massive financial establishments.”Bullion banks like JPMorgan and UBS suppress silver prices through aggressive naked shorting — but a coordinated surge of physical buying could catch them off guard and break their hold on the market,” he wrote on Substack.
Colombo and different supporters argue that financial establishments are suppressing silver costs via “naked shorting,” a apply the place banks take short positions on silver futures. He defined in his post that main banks at present maintain internet short positions of 44,583 silver futures contracts, equating to 223 million ounces of silver.
This signifies that for each US$1 increase in silver’s price, these establishments might face US$223 million in losses.By encouraging retail buyers to buy bodily silver, the motion hopes to exert upward strain on the price, probably forcing banks to cowl their short positions, main to a short squeeze situation.
Echoes of the 2021 silver squeeze
This will not be the primary time retail buyers have tried to problem institutional short positions in silver. The unique silver squeeze in early 2021 adopted the high-profile GameStop (NYSE:GME) short squeeze, the place retail merchants from the Reddit discussion board WallStreetBets efficiently drove up GameStop’s share price, triggering huge losses for hedge funds. Social media customers then set their sights on silver, hoping to create a related consequence. Although the passion pushed silver above US$30, the motion in the end misplaced momentum.
In a March 28 dialog, David Morgan, writer of the Morgan Report, advised the Investing News Network he was skeptical that the silver squeeze’s second iteration would have a sturdy affect. “Honestly, I don’t think it’s going to have that much of an effect this time … The retail market in silver is languishing. One major wholesaler even had net negative demand, meaning more sells than buys, in the last couple of weeks.” Morgan additionally identified that the primary silver squeeze benefited from a good storm of retail enthusiasm, a low silver price and a post-GameStop wave of anti-Wall Street sentiment. This time, he believes, momentum is weaker, with larger costs and declining retail curiosity in silver in contrast to earlier years.
Market reactions and price actions
The silver price stayed comparatively regular forward of Monday, with some minor upticks. One key issue to watch would be the demand for bodily silver versus paper silver (similar to futures contracts or silver exchange-traded funds). If enough buyers go for bodily bullion — quite than financial devices that will not require precise silver supply — it might create provide constraints that drive the metallic larger.
Whether the Silver Squeeze 2.0 succeeds in considerably impacting the silver market remains to be seen. Whatever the end result, the motion has reignited discussions about potential price suppression within the treasured metals market and raised awareness about how retail buyers can affect commodity markets.
Silver reached a high of US$34.40 on Monday. As of 2:55 p.m EST the silver price was holding within the US$34.03 vary, marking a 3 % uptick over the past 5 days and a 16.34 % increase because the begin of 2025.
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