The author argues silver's rally is driven by paper-market short covering rather than physical demand, making it look artificial.
Unpriced research observations (excluded from Calls and Returns):
XAGUSD — AVOID The author argues that silver's rally is not driven by real physical demand but by a paper-market squeeze: physical holders are not selling much while many traders are short via futures and options, so derivative buying forces short covering and pushes prices higher. This makes the move look like strong demand when it is mostly leverage and positioning, implying the rally may not be sustainable and investors should be cautious. Exact non-equity contract requires separate historical validation; no generic proxy.
Silver isn’t rallying on real demand, it feels like a paper-market squeeze.