“There are a lot of signs emerging that something is happening now,” said Chris Marcus of Arcadia Economics about the silver market.
The WallStreetBets crowd has since distanced itself from the silver story, calling it a distraction from GameStop. But while the white metal’s price has declined, interest remains high.
Putting the amount of buying seen over the last few days into perspective, Chris Marcus, founder of Arcadia Economics, said that the US Mint has been unable to meet physical demand.
He also said that this past Friday (January 29), 34 million ounces were added to the iShares Silver Trust (ARCA:SLV), an exchange-traded fund that seeks to reflect the price of silver. That was followed by 20 million ounces on Monday (February 1) and 61 million ounces on Tuesday (February 3).
Comparing those numbers to silver supply and demand statistics from the Silver Institute, Marcus said he doesn’t know anyone who believes it’s possible for that amount of metal to be added to SLV.
“It hit me last night — the only way that we know if there’s anything in there is based on the word of JPMorgan (NYSE:JPM), who’s the custodian of SLV who just got fined a billion dollars for manipulating … the precious metals — and Treasury markets I might add — hundreds of thousands of times,” he said.
Marcus believes something has broken or is breaking, and encouraged silver-focused investors to be cautious. He also urged those who have been considering a move into silver to think about acting now.
“I really want to be careful of how I’m phrasing things today, because i don’t want to scare people. Having traded equity options throughout 2007 and 2008, and (having studied) gold and silver ever since then, there have been a lot of times where it felt like things were building — but there are a lot of signs emerging that something is happening now,” he said.
“I say this as calmly as possible,” Marcus continued. “If there were any decisions for anyone who said before, ‘Let me know when it’s closer’ — I think if there are decisions people are going to make, I would suggest considering doing them now.”
Watch the interview above for more from Marcus on what’s happening right now in the silver market.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.