By Jamie Redman
On Friday, as the global cryptocurrency market cap jumped 5.4% higher against the greenback, U.S. stocks rallied toward the end of the day with the top four major stock indexes gathering gains. Precious metals also soared as the New York spot price of gold per troy ounce increased by 3.20%, and silver’s price value skyrocketed by 7.14% against the U.S. dollar. Four days ago, a blog post published on Peter Schiff’s website schiffgold.com stressed that silver typically outperforms gold and if people are bullish on gold, they “should be even more bullish on silver.”
Silver Jumps 7% Higher, Schiff Gold Report Says People Should Be ‘Even More Bullish on Silver,’ Investors Talk Silver Squeeze
Silver has been performing better than it did at the end of the summer, back when the price per troy ounce of fine silver reached $17.97 per unit on Aug. 31, 2022. At more than $20 per ounce of silver today, the precious metal has increased more than 15% against the U.S. dollar since Aug. 31.
However, silver’s spot market price per ounce is over 21% lower than it was during 2022’s silver price high at $26.37 per ounce. After the New York spot price of silver jumped 7.14% on Friday, Nov. 4, 2022, the hashtagged term “#silversqueeze” started to trend on Twitter around 6 p.m. (ET).
One Twitter account said the silver rally on Friday was crafted by “the banksters” and further insisted an ostensible silver price suppression would end soon. “Today’s gold and silver rally was brought to you by banksters,” the Twitter account said. “How did I know that? Because of the near exact pattern of gold and silver (indicates algos play). This means banksters deliberately want the price to spike. The suppression most likely ends today.”
Another user said that the silver market could get lit at any moment and stressed: “most people have no idea what is about to happen.” Peter Schiff’s website schiffgold.com says people should be bullish on silver and the blog post discusses how Doug Casey discussed silver with International Man. The blog post explains that gold bulls should be “even more bullish on silver.”
“Silver typically outperforms gold in a gold bull market,” the editorial highlights. “And the silver-gold ratio indicates that silver is significantly underpriced when compared to gold. Historically, when the spread gets this wide, silver doesn’t just outperform gold, it goes on a massive run in a short period of time.”
Fed Rate Hikes Put Pressure on Precious Metals, US Mint Says Its ‘Silver Suppliers Are Increasing Capacity’
Not everyone is bullish on silver and the most recent U.S. Federal Reserve rate hike has added pressure to U.S. equity markets, cryptocurrencies, and precious metals like gold and silver. At the end of August, the German-based firm Heraeus wrote that “rate hikes and dollar strength” have suppressed the price of silver and gold in the company’s precious metals appraisal.
A few days later after the appraisal published, however, Heraeus said silver demand could jump thanks to an increase in polysilicon production. Moreover, in more recent times, there’s been a lot of talk about a silver shortage stemming from increased demand.
After publishing a historical tweet from the U.S. Mint’s official Twitter account, the U.S. Mint replied to an individual who asked why the coin issuer wasn’t able to keep up with demand. “Worldwide, silver fabricators are struggling to keep up with demand for silver blanks,” the U.S. Mint wrote on Oct. 31, 2022. “The Mint’s silver suppliers are increasing capacity in an effort to meet demand. The Mint is also reaching out to additional fabricators to supply silver.”
Additionally, people have noticed that while the spot price of one ounce of silver is $20.85 per unit, buying a physical round is more expensive. A one-ounce American eagle silver coin will cost almost double the spot market price at $39 or more per unit. A 90% silver Morgan silver dollar will cost $36.99, which is 77% higher in price than today’s silver spot market values.
Source: Bitcoin News