The recent heat in the silver market is truly extraordinary. Looking at the performance of precious metal ETFs like SLV, many traders are exclaiming that this is the "star stock" in the precious metals sector. The sharp increase has led some to wonder—should they short the market and bet on a correction? This idea sounds reasonable, but in reality? It’s like walking straight into the gunfire.
Why do I say that? On the surface, it’s "it rose too fast, so it must fall," but the underlying reasons are much more complex. Currently, the silver market is being driven by several "big bomb" factors simultaneously: a real shortage of spot silver, soaring industrial demand from AI chips and the green energy revolution, plus the safe-haven and monetary attributes of precious metals are recovering amid global geopolitical tensions. This isn’t a bubble created by hype; it’s the real fundamentals taking center stage.
In such a context, shorting? Historical experience tells us that even if you guess the right direction, you often won’t see the bottom in time. Because the power of short squeezes can hit you hard. Traders seeking certainty of returns should respect the market trend—sometimes, going with the flow is more realistic than contrarian thinking.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
12 Likes
Reward
12
7
Repost
Share
Comment
0/400
ChainWatcher
· 9h ago
Silver's move this time is indeed quite fierce, but only warriors... or rather martyrs, dare to short it back haha.
Short squeeze will definitely result in a lot of casualties, history's lessons are right there.
Going with the trend is really more profitable than betting on a rebound, and the money can still be taken out alive.
View OriginalReply0
GateUser-e87b21ee
· 9h ago
Bro, your analysis has some substance, but I still think that short squeeze is easy to talk about, but actually doing it is really deadly.
I just want to ask one thing: can the demand for AI chips really support such a fierce rally like silver, or is there a possibility that the underlying logic could suddenly reverse one day?
By the way, I was bearish a while ago and got hammered pretty badly. Now hearing you say this, I have to follow the trend more honestly.
But honestly, I need to verify the spot shortage again; it seems like the industry opinions are all over the place.
View OriginalReply0
WhaleStalker
· 9h ago
Silver, I really can't understand this wave. AI, green energy, and geopolitical issues all coming together, shortages are actually real, shorting is just asking for death.
Have you experienced how fierce a short squeeze can be? I advise everyone to play it safe and follow the trend; going against the grain requires the luck to survive until that moment.
A steep rise like this is indeed tempting, but the fundamentals are really solid, not a bubble.
SLV this time is a bit outrageous; it seems the fundamentals can still push higher.
Shorting silver? Bro, you really dare, a short squeeze will teach you a lesson.
Shortage + soaring demand, why must it necessarily fall? This logic doesn't hold.
View OriginalReply0
CryingOldWallet
· 9h ago
Wait, why do I feel like the demand for AI chips has been exaggerated... Is there really a shortage of silver, or is it just an excuse for speculation?
View OriginalReply0
UncleWhale
· 9h ago
This wave of silver is really not hype; the demand for AI chips is right there. Shorting is just asking for death.
View OriginalReply0
DeFiAlchemist
· 9h ago
*adjusts alchemical instruments*
the transmutation math doesn't check out here ngl... shorting against structural scarcity + ai demand tailwinds? that's not contrarian alpha, that's just financial suicide dressed up as conviction. the liquidity dynamics favor the long thesis rn fr fr
Reply0
MetaverseMortgage
· 9h ago
Silver prices took off, and I was right about this wave, but the guys who shorted are really having a tough time.
Oh no, why didn't I realize the demand for AI chips? No wonder the shortage issue is so severe.
That short squeeze really can cause liquidation, I've seen too many who bet against the trend get crushed and ground into the ground.
With such a fierce rally, I’d better play it safe and follow the trend, rather than always trying to defy the odds.
The logic that physical silver is in tight supply, I believe in that, much more reliable than pure speculation.
The recent heat in the silver market is truly extraordinary. Looking at the performance of precious metal ETFs like SLV, many traders are exclaiming that this is the "star stock" in the precious metals sector. The sharp increase has led some to wonder—should they short the market and bet on a correction? This idea sounds reasonable, but in reality? It’s like walking straight into the gunfire.
Why do I say that? On the surface, it’s "it rose too fast, so it must fall," but the underlying reasons are much more complex. Currently, the silver market is being driven by several "big bomb" factors simultaneously: a real shortage of spot silver, soaring industrial demand from AI chips and the green energy revolution, plus the safe-haven and monetary attributes of precious metals are recovering amid global geopolitical tensions. This isn’t a bubble created by hype; it’s the real fundamentals taking center stage.
In such a context, shorting? Historical experience tells us that even if you guess the right direction, you often won’t see the bottom in time. Because the power of short squeezes can hit you hard. Traders seeking certainty of returns should respect the market trend—sometimes, going with the flow is more realistic than contrarian thinking.