Silver broke the $50 barrier for the first time in nearly half a century, trading at a new record high above $51 on Thursday, October 9.
The last time the precious metal approached such levels was back in 1980, during the so-called Silver Thursday, which led to an intraday record of $50.36.
Weighing in on the explosive rally, economist and financial strategist Peter Schiff warned that a massive short squeeze may send the price soaring even higher.
In a social media post, Schiff said that silver shorts could have seen the development coming a long time ago, further implying that he plans on capitalizing on the momentum.
“Buckle up. Silver just blew past $50 — it’s now trading at a new record high above $50.40. That’s higher than the 2011 peak and above the 1980 intraday record high of $50.36. Enjoy the ride, shorts.”
He warned earlier:
“Silver is up another 80 cents this morning, a new 14-year high. It’s now less than 30 cents away from $50. Once silver breaks above that level, a massive short squeeze may send the price soaring. Silver shorts have had this coming for a long time. Their pain will be our gain.”
Gold also holds firm
Gold prices are also holding strong above the $4,000 mark, as expectations of further U.S. rate cuts continue to support bullish sentiment.
What’s more, President Donald Trump also announced on Truth Social that Israel and Hamas are ready for a ceasefire deal, the first phase of a broader plan to end the ongoing war in the Middle East.
At the same time, the U.S. dollar index is hovering near a two-month peak, making dollar-priced bullion more expensive overseas.
Yesterday, October 8, UBS also noted that the ongoing U.S. government shutdown, together with fiscal concerns in Japan and France, had added fuel to safe-haven assets.
As a result, gold is up over 53% over the year, on track for the biggest annual gain since the 1979 oil crisis.
Featured image via Peter Schiff YouTube
Source: https://finbold.com/peter-schiff-warns-silver-bears-of-a-massive-short-squeeze/