A squeeze in the silver market can significantly affect its price. A "squeeze" occurs when demand for silver, particularly from investors or traders who are short-selling, exceeds the available supply, leading to a rapid price increase. This can happen when large-scale buying pressures force short sellers to cover their positions by purchasing silver, driving prices even higher.
A silver squeeze can
also be influenced by market sentiment, coordinated buying (such as through social media movements), or disruptions in the supply chain. In extreme cases, this can lead to volatility and sharp price spikes, as seen in past market events.
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