๐จ Silver Liquidation Alert! ๐จ
Silver recently experienced a sudden and swift liquidation, sparking concerns among investors. But what's behind this move? ๐ค
*The Story Behind the Liquidation:*
- *Temporary Pricing Gap:* Silver price on COMEX hovered near $92, while physical silver in Shanghai traded closer to $130, a 40%+ premium! ๐คฏ
- *Paper Markets Drove the Move:* COMEX silver price action relies heavily on paper contracts, with a large share of volume coming from claims rather than physical metal changing hands. The paper-to-physical ratio is estimated to be near 350:1.
- *Physical Demand Remained Firm:* Despite the liquidation, physical silver demand remained firm, with buyers paying premiums for delivery in Shanghai and SMM.
*Expert Insights:*
- *Bull Theory:* The liquidation was a brief dislocation, and the move reflected how different market structures react during sharp transitions.
- *CrediBULL Crypto:* Silver's long-term structure is still intact, with a 44-year base breakout. That breakout did not disappear because of a short liquidation.
*What Does This Mean for Investors?*
- *Opportunity for Buying:* Some experts see this as a buying opportunity, especially considering silver's potential for long-term growth.
- *Caution Advised:* Others warn of risks, especially after a 400% advance over the past year.
*The Future of Silver:*
- *Silver Cycles Move Slower:* Corrections can stretch across 12-18 months without invalidating the larger pattern.
- *Profit Taking:* Often appears once price enters discovery after decades of compression.
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