GameStop Is Over. Silver Is Next
The only thing that matters in this game is how much money you made. Nothing else. Greed is good. If you are playing the game for any other reason than to make money you will get slaughtered.
I have been posting on Twitter why I think silver could go up from here. No, its not because I am a paid Citadel or Melvin shill. I’m just a regular guy trying to make money in the market. And it appears as if silver is the next high dollar play, not GameStop.
GameStop is dead and risky money. Where do you honestly think it will go from here? $500? $1,000? It’s not like GameStop is reinventing the world of video games. It’s a struggling retailer - that is it. Sure it might pop up another $100 bucks, but where will it go from there? Valuation metrics are insane across the board.
Eventually the GameStop bubble will pop (and it looks like it’s happening now with the stock down 30% today and 20% in post market trading). When that happens it will fall back to earth where it belongs.
Hate me if you want, I don’t care. But I have seen enough people bring emotions into this game these past few days from unhappy “Redditors” who disagree with my silver case. You can disagree all you want, but if you start name calling, that is a huge sign you are thinking with your emotions and you will eventually blow up your portfolio.
Instead of raking on these GameStop bagholders I’m going to discuss why I think silver is going higher from here. And by higher I mean in the $50 range, not $1,000 like you see some guys talking about.
First, the physical market is pricing silver over $40 per ounce. Check out AMPEX, my preferred bullion dealer. American Silver Eagle’s are selling for over $40 per ounce.
The last time I saw a big divergence like this was in March of 2020 when the stock market was tanking.
During the massive March 2020 selloff paper silver tanked to the $11-12 dollar range while physical shot up in the $20-25 range. As I penned in my last post, I was buying paper silver ($SLV) hand over fist during this time period as it seemed like the market would soon correct. As seen in the picture below, the price corrected extremely rapidly.
Today there is the same price discrepancy. Physical silver is trading for a substantial premium to paper silver. Sure, the physical market could be priced wrong resulting in bullion dealers to lower prices in the coming weeks, but I think the probability of that happening is slim based on the volume of physical silver being moved.
Remember, last night dealers were running out of silver. Everything was out of stock.
Well now the CME has hiked margins on Comex silver from $14,000 to $16,500. "The decision is based on “the normal review of market volatility to ensure adequate collateral coverage,” CME said in a statement.
Silver fell 2% initially in post-market trading but is up 0.56% as I type this. What this means is physical silver is about to go higher as it has become more expensive to get paper form.
In addition, there is a significant amount of long-term trends benefiting silver - and don’t forget, the price of silver was rising for the past year way before this entire WallStreetBets trend happened.
Last year the supply of silver fell by more than the total demand consumed.
In addition, the massive push into green energy will (solar panels and EV cars) will continue to increase the demand for metal - a good tailwind to be behind.
Finally, the reckless fiscal and monetary policy seen by major global governments should serve as a strong backdrop amidst a falling dollar. Like it or not, but inflation is going to go up big time from here. There are more dollars and debt in the system. And one of the greatest hedges against inflation, you got it, silver.
If you got this far and you are a diehard WallStreetBets fan, you are likely thinking of the Citadel narrative. Sure, Citadel might be one of the largest holders of $SLV, but it is only a measly $180 million position. When you are managing $35 billion in assets under management, this position is meaningless to your fund.
What question that really should be asked is why are mods on WallStreetBets deleting everything they can about silver? Are they trying to suppress information? Shouldn’t the users, “police” the posts with upvotes or downvotes? And if the mods are really deleting as much silver posts as they can, wouldn’t this be considered some sort of market manipulation - or a small form of it?
And don’t forget, WallStreetBets is not the end all be all. There are many different forms of market commentary. Silver has been trending for five days straight on Twitter. You will want to be on the right side of the trade.
Disclaimer: The publisher does not guarantee the accuracy or completeness of the information provided in this page. All statements and expressions herein are the sole opinion of the author or paid advertiser.
Alpha Letter is a publisher of financial information, not an investment advisor. We do not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient.
THE INFORMATION CONTAINED ON THIS WEBSITE IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME. THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION. INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN.
No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.
Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable. They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and the publisher undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.
The publisher, its affiliates, and clients of the a publisher or its affiliates may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
Neither the publisher nor any of its affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.
By using the Site or any affiliated social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.
For Full Terms of Use Click HERE. For the Privacy Policy Click HERE.
alphaletter.co (“Alpha”) is a website owned and operated by Substack. Alpha is paid fees by the companies that make investment offerings on this website. Be aware that payment of these fees may put Alpha in a conflict of interest with the investor. By accessing this website or any page thereof, you agree to be bound by the Terms of Use and Privacy Policy, in effect at the time you access this website or any page thereof. The Terms of Use and Privacy Policy may be amended from time to time. Nothing on this website shall constitute an offer to sell, or a solicitation of an offer to buy or subscribe for, any securities to any person in any jurisdiction where such an offer or solicitation is against the law or to anyone to whom it is unlawful to make such offer or solicitation. Alpha is not an underwriter, broker-dealer, Title III crowdfunding portal or a valuation service and does not engage in any activities requiring any such registration. Alpha does not provide advice on investments or structure transactions. Offerings made under Regulation A under the U.S. Securities Act of 1933, as amended (the "Securities Act") are available to U.S. investors who are “accredited investors” as defined by Rule 501 of Regulation D under the Securities Act well as non-accredited investors, who are subject to certain investment limitations as set forth in Regulation A under the Securities Act. In order to invest in Regulation A offerings, investors may be asked to fill out a certification and provide necessary documentation as proof of your income and/or net worth to verify that you are qualified to invest in offerings posted on this website. All securities listed on this site are being offered by, and all information included on this site is the responsibility of, the applicable issuer of such securities. Alpha does not verify the adequacy, accuracy or completeness of any information. Neither Alpha nor any of its officers, directors, agents and employees makes any warranty, express or implied, of any kind whatsoever related to the adequacy, accuracy, valuations of securities or completeness of any information on this site or the use of information on this site. Neither Alpha nor any of its directors, officers, employees, representatives, affiliates or agents shall have any liability whatsoever arising from any error or incompleteness of fact, or lack of care in the preparation of, any of the materials posted on this website. Investing in securities, especially those issued by start-up companies, involves substantial risk. investors should be able to bear the loss of their entire investment and should make their own determination of whether or not to make any investment based on their own independent evaluation and analysis
This is like boomer advise. I made my mom get out of her gold & silver coins & find real growth.
The better okay are crypto that has a high utility aspect
"Eventually the GameStop bubble will pop (and it looks like it’s happening now with the stock down 30% today and 20% in post market trading). When that happens it will fall back to earth where it belongs."
Which is why I will never go for your services. Good luck though & all the best
Ciao