The silver story is much more than a GameStop-like short squeeze, and the semi-precious metal could be headed much higher, according to Otavio Costa, Portfolio Manager at hedge fund Crescat Capital.
“It’s about fiscal imprudence. Massive debt builds up. Monetary dilution to suppress rates. The lack of fundamentally cheap assets that yield more than inflation. A supply deficit issue,” Costa tweeted Tuesday, adding that a sub-$30 silver is perhaps the most attractive asset to hold.
Silver is trading at $26.95 per ounce at press time, having declined by over 8% to $26.65 on Tuesday. The metal jumped nearly 10% during Monday’s Asian trading hours as the short-squeeze speculation translated into strong physical demand for the metal.