![]() He added: “The fact that such a large and liquid market as silver can be targeted by retail investors says much about the shift we are witnessing, though despite appearances this morning it’s going to a lot harder to squeeze silver shorts as the market is so much deeper and more liquid.” There has been a clear divergence from gold, which has remained range-bound, Wilson noted. “We’re not in Kansas anymore,” said analyst Neil Wilson at, saying silver prices were jumping as investor interest in the metal is boosted “due to expectations Reddit traders will attempt to squeeze prices higher”. “For example, the ratio of ounces sold per day was running about two times earlier in the week and closer to four times the average demand by the end of the week,” the broker said, adding that demand had been running as much as six times that of a typical business day after markets closed on Friday. Nevertheless, US bullion broker APMEX said over the weekend that it has seen a “dramatic shift” in silver demand in recent days. READ: IG follows others in restricting trading of GameStop and AMC sharesĭespite a #silversqueeze hashtag trending on social media, on WallStreetBets there were denials that the members of the forum had anything to do with the silver rise, with some senior members noting that the silver play “is a trap” with hedge fund giant Citadel being 'long' silver, ie expecting the price to go up, and others warning fellow YOLO traders to take a lesson from Silver Thursday in 1980. ![]() Having propelled ailing US main street retailer GameStop Corp ( NYSE:GME) up over 1,700% over the past month, the WSB crew were said to have made the precious metal their new darling, pushing its price above US$30 an ounce at one point on Monday morning, from Friday’s settlement at $26.914. That is partly what helped fuel a massive surge in Gamestop last week.Silver prices have shot up nearly 12% to eight-year highs in what analysts said was a surge of interest from retail investors inspired by the WallStreetBets forum to put the squeeze on short-sellers. ![]() ![]() If the price goes up enough for an extended period of time, the thinking goes, the big investors who bet against gold and silver would eventually have to reverse those trades, buying back in - and pushing the price even higher. A big move in the physical price of silver could hurt big investors that were anticipating it to fall.Ĭlaims online are that gold and silver prices are being repressed by financial bets against them, experts say. The silver market frenzy extended to physical demand for the metal, with coin dealers reporting delays in deliveries as they were overwhelmed by demand. The online army of Reddit traders have over the past week rallied to defend out-of-favor companies such as struggling videogame retailer Gamestop and theater chain AMC Entertainment, defeating hedge funds that had bet the shares would fall by selling them short, in a stunning reversal of financial power transfixing Wall Street. Silver has rallied in recent trading days after users on the forum posted about executing a “short squeeze” similar to ones that drove recent gains in stocks like GameStop and AMC. GameStop-Robinhood stock revolution: Not a secure retirement plan On Twitter, #silversqueeze was trending as investors turned their attention to the latest market strategy to emerge from the “WallStreetBets” forum on Reddit.Ī fight is ranging in the stock market: Should you worry about your 401(k)? The rally comes after silver prices advanced more than 5% last week. Silver futures jumped 11% on Monday to about $30 per ounce - an eight-year high - following strong gains over the weekend. Reddit traders have set their sights on their next target: Silver.įutures contracts for the precious metal jumped Monday, extending recent gains as the Reddit-fueled buying frenzy spilled over into the commodities market. Watch Video: GameStop-Robinhood 'Wall Street bets' frenzy explained ![]()
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