In a research report published Tuesday, Goldman Sachs analysts have reiterated their bullish outlook on Silver. The bank is anticipating Silver prices advancing to $33 an ounce, buoyed by U.S. President Joe Biden’s plan to boost alternative renewable energy production.
Reddit short squeeze failure
Many retail investors were hoping to recreate a short squeeze in silver, similar to what was accomplished in stocks like Gamestop, AMC, and Blackberry, organized through social media and a Reddit post from Wall Street Bets.
Goldman Sachs said that the plan was doomed to failure as the silver market, which is worth nearly 200 billion dollars annually, is just too big for retail investors to manipulate. For the short squeeze to be successful, each one of the Wall Street Bet individuals had to accumulate positions of around 4,200 ounces, which is a lot of silver.
Regulations in place after Hunt brothers
The investment bank also noted that regulations were put in place ever since the Hunt brothers infamously tried to control the entire silver market in the 1980s, which makes it nearly impossible to corner the market.
Silver remains volatile
Volatility continued to dominate the silver prices after the fallout of a fizzled short squeeze. March silver futures was up 2.64% on the day to $27.10 an ounce.