Dummies didn’t know that most hedge fund and institutional investors were already long silver. There is no huge short interest to be squeezed. So much for the idea that this was some kind 0f genius move.
The working thesis as I understand it - and this has been a very old rumor I remember hearing it more than a decade ago - is that JP Morgan is the top dog in silver trading and is the “big short” target. Part of the thesis is that JP Morgan is short silver and short gold in cahoots with the US Govt to keep/manipulate the value of the dollar within a price target as needed. Keeping the price of silver/gold down keeps the dollar up and vice versa. So according to this theory they are consigned with the responsibility of keeping the dollar inside a trading range that the central bank wants and using precious metals as one of the tools.
I agree, the biggest hedge funds are long silver at least in part as a hedge against their cash holdings and short term volatility in stock prices should inflation cause medium term earnings decline among various producers caused by inflationary pressures.
And I do believe we are in for a period of stagflation through 2022.
You might not make as much as short squeezing GME, but silver is going up. 5 of the top hedge funds couldn't short it enough t go down now. You might short it enough to make a couple of dollars if you buy it to go up after forcing it down, but I don't see the value in going through all the trouble.
Course the way I think never works. I figured an electric car company that makes 10K cars and GM makes that many a day would be worth maybe $5. I wouldn't own Tesla on a bet, but they seem to do alright. Pelosi bought Tesla the day before Biden announced the government would switch to all electric vehicles. She's rich and I'm on Social Security. Still, I wouldn't short silver.