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Recently, silver prices have skyrocketed. Don't think it's just factories stockpiling for jewelry; the truth is even more exciting!
The global annual silver production is 27,000 tons, with 23,000 tons used in industry. It seems not to be scarce. But in the futures market, the combined supply of COMEX, London, and Chinese inventories that can be delivered at any time is not enough for half a month's industrial demand worldwide. Yet, the short positions sold by big players are several times the inventory, like oversold concert tickets. $DOGE $PEPE $WIF
This time, the bulls are going off-script, insisting on physical silver, which the bears can't deliver, triggering a short squeeze, and the price is soaring. Why isn't gold going crazy like this? Because of the size difference—silver is a small market. When large funds flood in, the spillover effect breaks through the price ceiling.
This round of rapid increase essentially shakes the credibility of the US dollar. Capital seeks safe havens, and the gold and silver markets become refuges, creating a self-reinforcing cycle.
When will this surge end? Either the shorts are wiped out or more longs are liquidated. Silver's rapid rise is a "stress test" of financial trust, with futures traders and hedge funds as the main players. For ordinary people, just watch the excitement and learn some logic. Follow me to gain more insights into financial truths!