As part of my interest in Bitcoin, I follow the financial news. The last week of January 2021 turned out to be very exciting. A group of investors on a Reddit forum – Wall Street Bets, had some months prior, discovered a weakness in the trading of a major hedge fund.
As the momentum for this trade expanded and the share price grew beyond all expectations, millions of eyes were drawn towards this tiny little corner of the Internet that was about to bring down one of the big guys. Or so they thought.
They came close. The short trade ended up costing Melvin Capital many billions – the exact amount as yet undisclosed. The fund survived, but only just. Requiring an injection of capital to the tune of $3 Billion from other hedge funds in order to stay solvent.
The financial news reporter Max Keiser led a campaign of ‘buy silver’ ‘crash JP Morgan’ in 2010 which was successful for a period of time and caused the price of silver to move from $11 to $50. As a result JP Morgan now holds 600 million ounces of silver to prevent them from being vulnerable to this kind of move again.
And so here we are again. Many may say third time lucky. Will it be?
Undeterred, a new post on the Reddit forum highlighted the potential with silver and suddenly all eyes turned to this long-neglected market, that has endlessly disappointed resilient investors for many decades.
As it turns out there have been shortages in the supply of physical precious metal for the last year. As an investor in silver myself since 2016, I am aware of what typically appears to be available on various bullion websites.
In hindsight, GME was able to highlight the perfect set-up.
Not everyone is happy with these arrangements, however. Furlough payments have helped, but there are many who are suffering greatly. Worried about their businesses, the loss of their savings and severely restricted in terms of new ways in which to find an income and feed their families.
Will they pull it off? The signs are promising. The actions of the GameStop predators certainly drew worldwide attention briefly. In the process, many disillusioned silver investors who understand the importance of this metal became re-invigorated in their passionate calls to buy silver and encouraging their friends to take part.
It is my belief that our existing financial system is destined to crumble. Maybe the irony of GameStop being the hair that breaks the camel’s back, the one that initiates the crack that crumbles the existing paradigm and ultimately ‘stops the game’ of the chronically sick money masters, will play out. But where will that lead us, and will it bring us a future that is any better?
War in the financial world is about to begin and you need to be prepared, but are you ready?
Interview with Dentists Who Invest
Check out this clip on ‘Gold and Silver’ from my recent chat with James Martin from the Facebook Group – Dentists Who Invest. If you would like to see more of these clips and the full interview.