After GameStop, the Reddit Army has targeted
the precious metals market. As of
Monday, the Silver futures surged upto 13% – this is a five-month high followed
by a 6% rally which happened last week.
The stock market has been a whirlwind in the
last few weeks, all thanks to Reddit. For more about this story, like our page on Facebook to find out all about it!
#SilverSqueeze started trending on Twitter
when the retail sites started warning the customers that they won’t be able to
meet the skyrocketing demands for the silver bars and coins.
Recently, in the trading business, silver
futures were elevated up to approximately 11%. Hence, the shares of miner Coeur
Mining (CDE) increased 20% in the premarket trading, whereas the Pan Am Silver
(PAAS) increased 15%.
Related: Wall Street vs. Reddit: 5 Movies To Understand the Frenzy!
This is a prime example of the power displayedby
the same group that captivated Wall Street and Main Street: WallStreetBets.
Reddit singlehandedly sent the GameStop (GME), AMC, and other short-sighted
stocks skyrocketing last week. This crushed the market and the hedge funds that
were bet against these stocks. During this crash, Robinhood – a free-trading
app – came under stack after it restricted the trades in GameStop and others.
People on WallStreetBets had their sights on
silver and iShares Silver Trust ETD (SLV), as many asserted that they could
hurt the giant monarchs that were artificially suppressing the prices.
“SLV will destroy the biggest banks, not
just some little hedge funds.” – wrote a WallStreetBets user.
Some users claimed that JPMorgan Chase is
suppressing metals for quite some time and so it could be an epic turn of
events. They urged others to “load up”.
Meanwhile others pointed out that JPMorgan
paid $920 million of fine last year to settle charges, accusing it of engaging
in manipulative trades of future that are tied to the metals and Treasuries.
WallStreetBets, on the other hand, suggested
that their movement is being co-opted by hedge funds, and so, they have no
supporting effort in the silver market.
There was a thread titled: “The Silver
Squeeze is a hedge-fund coordinated attack so they can keep fighting the $GME
fight”.
According to the information conveyed in this
tread, buying silver now would be tragic and an irreversible decision that will
not just make all your money fake,but will sideline you from this righteous and
glorious war we are in.
Interestingly, the Winklevoss twins— known
for suing Facebook’s Mark Zuckerberg and backing Bitcoin— were observed
favoring and extending support for the push by WallStreetBets into silver.
“The
#silversqueeze is a rage against the machine.” – Tyler
Winklevoss tweeted.
“If
silver market is proven to be fraudulent, you better believe gold market will
be next.” – Cameron Winklevoss tweeted.
Despite the sincere warnings over the
weekend, the retail sites have been facing increased demand.
“Due to
unprecedented demand on physical silver products, we are unable to accept any
additional orders on a large number of products, until global markets open
Sunday evening.” – wrote APMEX, the world’s largest online retailer
of precious metals, in an official notice on its website.
In fact, SD Bullion has also warned that—
because of the unprecedented demand in silver— it won’t be able to accept
orders until Sunday evening. Many other Metal sites placed this notice on their
official websites.
“It’s
not surprising to see the sharp and abrupt uptick in consumer demand overwhelm
the physical supply of silver coins held by dealers in the short term.” – said Ryan
Fitzmaurice who is a popular commodities strategist at Rabobank.
The Reddit army keeps getting stronger with
the Reddit Silver Squeeze! Who saw it coming, really? Who do you think is going
to be Reddit Army’s next target? One thing is for sure, the next target will
shock and weaken the stock market even more.
For similar stories, watch this space.
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