Silver Squeeze: Next GameStop or Fundamental Bet?

Silver Squeeze: Next GameStop or Fundamental Bet?

Daniel Lacalle 02/02/2021 2
Silver Squeeze: Next Gamestop or Fundamental Bet?

Silver fundamentals are stronger. There is no need to bet on squeezes.

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Monetary insanity will keep silver and gold as good opportunities.

Difference between physical price and financial market price justifies buying.

Gamestop may have been fun for some small investors, but the risk of buying into a short-squeeze with no real fundamental valuation backing is a risky move.

On silver, a long position is warranted by the fundamentals of supply and demand.

In a world where currency debasement is now widespread, where many emerging market currencies are depreciating against the US dollar even in a period of dollar weakness, what we are living is fiat currency debasement, and as such, gold and silver are very attractive long-term options for institutional and small investors.

Unless you expect global monetary policy to move into contraction, which I find impossible, the best way to diversify a portfolio with highly correlated equities and bonds is to own gold and silver.

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  • Hayley Jackson

    I am buying silver. It's a can't miss opportunity for the long term.

  • Simon Rother

    Great article

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Daniel Lacalle

Global Economy Expert

Daniel Lacalle is one the most influential economists in the world. He is Chief Economist at Tressis SV, Fund Manager at Adriza International Opportunities, Member of the advisory board of the Rafael del Pino foundation, Commissioner of the Community of Madrid in London, President of Instituto Mises Hispano and Professor at IE Business School, London School of Economics, IEB and UNED. Mr. Lacalle has presented and given keynote speeches at the most prestigious forums globally including the Federal Reserve in Houston, the Heritage Foundation in Washington, London School of EconomicsFunds Society Forum in Miami, World Economic ForumForecast Summit in Peru, Mining Show in Dubai, Our Crowd in Jerusalem, Nordea Investor Summit in Oslo, and many others. Mr Lacalle has more than 24 years of experience in the energy and finance sectors, including experience in North Africa, Latin America and the Middle East. He is currently a fund manager overseeing equities, bonds and commodities. He was voted Top 3 Generalist and Number 1 Pan-European Buyside Individual in Oil & Gas in Thomson Reuters’ Extel Survey in 2011, the leading survey among companies and financial institutions. He is also author of the best-selling books: “Life In The Financial Markets” (Wiley, 2014), translated to Portuguese and Spanish ; The Energy World Is Flat” (Wiley, 2014, with Diego Parrilla), translated to Portuguese and Chinese ; “Escape from the Central Bank Trap” (2017, BEP), translated to Spanish. Mr Lacalle also contributes at CNBCWorld Economic ForumEpoch TimesMises InstituteHedgeyeZero HedgeFocus Economics, Seeking Alpha, El EspañolThe Commentator, and The Wall Street Journal. He holds a PhD in Economics, CIIA financial analyst title, with a post graduate degree in IESE and a master’s degree in economic investigation (UCV).

   

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