Silver Squeeze Could Easily Make XAG, Others 10-20 BaggersI've been watching the silver squeeze that is unfolding before our eyes - huge demand and buying of physical silver, yet the spot price is stuck in a narrow range lately. There is a huge disconnect. A number of very large institutions are shorting silver now in massive quantities as a unified attempt to suppress the price. It can't and won't last. They will fail because the demand for silver by retail and institutional investors as well as the commercial/industrial firms that use the metal is so great, that eventually the physical delivery demands will overwhelm the system. There is a growing consensus in the investment community that the next few months will see a historic rise in the price of silver. The very large institutions will eventually be forced to cover their shorts. I've heard of some predictions of silver attaining hundreds of dollars in short order. Not sure whether or not those figures are just feverish optimism. But I think we will see a major move soon, in the next three months, and companies like XAG which have a substantial and growing silver resource will go up dramatically. What makes XAG even more compelling is that the float on the stock is small given that management, insiders and large shareholders own over 80% of the stock. I think the actual figure is closer to 90%. If silver hits $50, I think we'll see XAG in the $1-2 range pronto. My thoughts ignore the prending drilling results which may be poor, good or spectacular. We''ll find in the next week or so.
I watch quite a few videos on YouTube about silver and silver stocks. The following one was very well done and explains the current dire situation in the silver market very well. Enjoy.
Ed Steer: Silver Price is About to Blow Sky High - YouTube