Analyst Adam Button states that the Silver($XAG ) market is experiencing some of the most glorious days in its history, with extreme volatility rarely seen in commodities markets. The $100 mark, once considered a major hurdle, has now become the launchpad for an incredible rally.
🔸 It is highly likely that margin requirements will be adjusted upwards again this week. However, recent adjustments have failed to stop the bull run as capital from retail investors floods into the spot market seeking opportunities.
🔸 The small market size and low liquidity are key reasons for Silver terrifying acceleration right now. However, Adam Button warns this is a double edged factor in the long run. Additionally, high prices may prompt mining companies to sell future production to lock in profits, creating potential selling pressure in the derivatives market.
With low liquidity acting as both a launchpad and a risk, will the upcoming margin hike be a bucket of cold water to cool the market, or just fuel to the fire for this FOMO frenzy?
News is for reference, not investment advice. Please read carefully before making a decision.