(Kitco News) – The much-anticipated #SilverSqueeze2.0 appears to have failed, with silver prices seeing the usual morning smackdown, but the online community and their institutional allies never managing to get prices back up to flat on the day – much less causing the desired cascade of closing short positions and the resulting spike out of the rigid price range.
The gray metal’s performance was particularly disappointing as other precious metals saw significant gains even as silver remained unsqueezed.
#silver 😡 #silversqueeze #silversqueeze2 #gold @Oliver_MSA pic.twitter.com/JJstQwYu1e
— Mining Investor (@Alberto42928945) March 31, 2025
Some community members shared optimistic takes that victory was inevitable even if it may not arrive today.
But don't let yourself be fooled. The manipulators will keep going until the very end. In the end, however, we will win.#SilverSqueeze2 https://t.co/PX80vREGkQ
— Honza Černý (@honzacern1) March 31, 2025
Others poked fun at the timing of the #SilverSqueeze2.0, coming as it does the day before another significant date.
#Silversqueeze2.
March 31, 2025.
APRIL FOOLS!— Ken Evans (@Snavenek) March 31, 2025
The community’s call-to-arms is based on the belief that silver prices are being artificially manipulated through the futures market, keeping them low even as many of the traditional drivers – rising inflation, increasing physical demand, supply deficits, and skyrocketing gold prices – have aligned to support higher silver prices. They believe that a concerted effort to buy – and to not sell when the inevitable pushback occurs – could break silver prices through the ceiling and spark a bull run.
Jesse Colombo is an independent precious metals analyst and investor, and publishes The Bubble Bubble Report. He was one of the earliest prominent voices to come out in support of #SilverSqueeze2.0, and he has written some of the best analysis of the current dynamics in the silver market.
Colombo said that whatever happens on March 31, he’s on board for the long haul, because he thinks people need to become aware of the tamping down of silver prices that so often occurs early in the North American session, and what could happen when silver does break through.
“It's more about building publicity and galvanizing both regular everyday investors, and institutions,” he told Kitco News on Friday. “It's not just the little guy buying a few coins here at the local coin shop. I don't believe that's going to be the core of this movement. I believe it's a concerted effort, but it's going to also include hedge funds. They can control, they can go in, they can go along with futures, or they can buy Sprott physical silver ETFs, and take physical delivery through futures.
“I'm not limiting it just to March 31,” he added. “I'm not the one who originated it. But I went along with it because I'm trying to generate publicity for this idea that silver's very manipulated, but that's not a reason to be down on silver.”
“On the contrary, I believe the manipulation is about to lose control.”
The control that the paper market exerts on silver prices is almost impossible to overstate. Krauth pointed out that the futures market is net short around 223 million ounces right now. “That's about 25% of the annual mine supply, so it certainly is significant,” he said. “If you look at the ratio of paper silver to physical silver, we’re something like 378 to one, which is well beyond any other futures market for any metal, or any commodity.”
Colombo explained the market dynamic that usually restrains silver prices during the early part of the North American session.
“The suppression occurs in the morning, but there's no reason why it can't rally in the afternoon in the American session,” he said. “A lot of times what I've seen is it'll be slammed in the morning, just like [Friday], and then it'll recover sometime around lunchtime into the afternoon, and sometimes actually even make net gains, and then the Asian session will open up and then they'll help push it through.”
“That's the best combination, is when it carries over into the next trading session,” he added. “You really want to be firing on all cylinders, you don't want it to be only driven by the Americans, by the Europeans, by the Asians. You want everyone on board, and that's what happens when you have a technical breakout.”
And while that breakout has yet to occur – barring a big surprise during the Asian session – Colombo said that he doesn’t see Monday as the ‘do-or-die’ day for this move, and that while the fundamentals are important – and largely supportive – he thinks the ultimate success or failure of #SilverSqueeze2.0 will be determined on the price charts.
“I view $33 an ounce in silver as paralleling $2,000 to $2,100 in gold,” he said. “I believe once silver decisively breaks through – and it's been a huge battle, but it was for gold – once it finally clears that level once and for all, I think we're never going to look back. That’s how I'm looking at it. Because then what happens is you get algorithms, that’s essentially program buying. It'll be in the ETFs, it'll be in futures, and then it just becomes a virtuous cycle.”
Like Colombo, some are still hopeful that Monday is only the beginning and that tomorrow and the coming days could bring the move.
Reminder 👇 today we finish the month and Quarter Silverprice ...from tomorrow we really 🚀 #silver #silversqueeze2 https://t.co/mcuY0mf0dX
— Boz (@bozkaschi) March 31, 2025
Spot silver did manage to reclaim the $34 price level, but as of 3:51 pm EDT, it remains in negative territory on the daily chart.
Spot silver last traded at $34.086 for a loss of 0.13% on the session.
