Gamestop Vs Silver Squeeze
In our continuing look into what is currently happening on Wall Street with the Giants, Lions, Bears, and Davids today we will give an overview of how the Davids have tried to do the same thing they did with the Gamestop stock to the silver stock, what was the fallout, and what the difference between the two really are. This is important to understand, especially regarding silver because silver and gold are God’s money. Also, if you want to know why the price of silver and gold are so manipulated you will learn why here. We have done our best to simplify and generalise as much as possible so that you do not have to do hours of research to understand both the micro and macro perspective of what is currently unfolding.
Gamestop Vs Silver
What the Davids (retail traders/ small investors) did by buying Gamestop stock when they did, worked brilliantly in sticking it to the hedge funds (Bears) who lost billions of dollars in the process. However, most of those Davids also lost a lot of money as Gamestop went from around $100 to over $400 in one day, and then suddenly dropped in the next days down to around $90, which means if you got in in the middle or late in the surge and did not sell, a lot of money was lost.
Because Gamestop is a failing retail business during the CCP Virus with a business model that is now obsolete due to most video game sales moving online, the price of it went down very quickly after it spiked because it went back down to its actual value. Therefore this was a double edged sword for both parties.
Silver is a different animal altogether in the stock market, and the Davids tried to do the exact same thing they did with Gamestop, with silver, but it didn’t work and here is why. For one, silver holds real value, meaning it is has hundreds and thousands of commercial and industrial uses in everything from Yoga pants to electric cars giving it a real demand in the world. Secondly, the big hedge funds (bears) were not betting on silver to fail like they were Gamestop, but are actually betting on its value to increase because of its use in so many new technologies that are going mainstream. So why would the Davids go after silver then? Because it is arguably the most manipulated commodity in the world, even more than regular stocks, and if it the market was not manipulated and silver was at its true value, it would be extremely expensive compare to its current market value of $27 an ounce.
The other reason this failed is because the silver market is worth more than 30 billion dollars and it would take a lot more money than the Davids had to make much of an impact. Also, to invest in the silver futures market, meaning betting on the future price of silver, the entry fee to begin investing is somewhere around $10,000 at the moment, but when people like the Davids tried to start buying into the futures market, they simply raised the amount of money needed to invest which shut out most small investors. They changed the rules in the middle of the game just like they did to the Davids with Gamestop. If they had not illegally stopped them from continuing to trade the Gamestop stock, the hedge funds (bears) would have lost far more than the 5 billion dollars they did.
What were the Davids trying to achieve?
Besides being angry that the little guys are constantly getting cheated and have no way to defend themselves, they wanted to poke the bear where it is most sensitive. When you bet on the future of silver, you buy what is called paper silver, and although it is not real silver you can redeem it for physical silver instead of cash. The problem is, in the futures market they do not have even close to the amount of physical silver to pay all of their customers if they decided they wanted their physical silver.
If it somehow happened that all of the Davids got into the futures market and started asking for their physical silver, there would be a shortage, and the price of silver would skyrocket, and if they bought enough shares, and it would have to be tens of billions worth, silver would reach much closer to its true value, and gold would definitely follow. But as you can see, mechanisms have been put in place so that the little guy is not able to pull this off, yet.
Why is silver (and gold) kept artificially low?
There are many reasons, but one of the main reasons is the fact that the true demand for silver is kept a secret, meaning there is no open data available like other stocks. The first reason for this is huge corporations, for example electric car manufacturers and computer chip makers need tons and tons of silver, and if we really knew how much they were using, the price of silver would skyrocket and the price of your new electric car, laptop, or phone would shoot way way up. Another important reason is that although silver is not currently considered legal tender, it is used as an investment and considered relatively safe in the case of a depression or recession, and can retain most of its value while other stocks lose almost all value. It is important to note that Silver is much more industrially used than gold and because of this, it gains and loses its market value more sporadically than gold due to global industrial factors.
The other reason is the governments, especially the US government wants to keep it that way. Silver and gold are the thermometer of the strength or weakness of the dollar. Although we are no longer on a gold standard, meaning any 1 dollar bill can be exchanged for a set amount of gold, the two precious metals are still considered to hold value due to their extreme rarity compared to other metals, their unique properties, and usefulness. Because of this the US government keeps the price artificially low, using it as one of the mechanisms to either inflate or deflate the value of the dollar as needed. So if you thought there was a truly free market, sorry to burst your bubble.
Where are We Now?
Firstly, you have to know that we are in the most volatile market bubble in history, meaning there is not just a housing bubble, or a tech bubble, or an asset bubble, etc. There is an EVERYTHING bubble, and when it bursts (crashes) all stocks will lose 80-90 percent of their current market value, period. What comes next, if a miracle does not happen with the U.S. debt, which we are not counting out, then what will happen next will not be a recession, but a depression.
In 2008 we experienced a recession because the government bailed out banks that should have failed, and there would have been a short depression, but all of the bad loans and empty investments would have disappeared and the system would have been healthy again, but that didn’t happen. That bad debt just ballooned to be much bigger and since the CCP virus hit we have added more money to our debt in one year than in the last 10. Most of this money goes to big banks and other firms who then invest it in the stock market making it artificially inflated as well. On top of that there are more loans than ever before that people cannot pay because of being out of work and out of business due to the CCP virus, further inflating the bad debt problem, and we could go on and on.
How Do We Win?
This post is not to scare you, just to inform you. We are not meant to be ignorant of these things. As for how we win, that all depends on what you see as winning. Do you just want to see the giants, lions, and bears fall, or do you also want to be on the receiving end of one of the greatest transfers of wealth in history? There are investments that can be made that traditionally hold and retain its value in the case of a depression, and it would be wise to research such investments. However, we are not your financial advisors and there are many many different ways to invest in the stock market that we have barely scratched the surface of thus far, so if this has peaked an interest in you please do your due diligence.
We also want to be clear, that it is very important you do not immediately go invest one way or the other, but make decisions in shalom, and the only place to find that is in Yeshua, in the presence of the Holy Spirit, in prayer and worship to the Most High. We are not here to worship Mammon, but to worship the great I Am, and all the gold and silver and all of the wealth is His. Our goal in life is not to make money, not that money in and of itself is evil, but to serve YHWH, and to Trust in His promises that He will take care of the rest, allowing us in each of our own unique capacities in the Body of Messiah to continue paving the way for the return of Yeshua. Remember, we fight from the victory not for it, and we are the proactive army of Adonai, not the reactive. We pray for your continued wisdom, divine strategy, and shalom moving forward, and to hear clearly the voice of the Holy Spirit every day and every step of the way. Adonai bless you and keep you!
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