The price of silver rallies as the online trading movement fueling the rise of unloved stocks like GameStop has taken a hit on the precious metal.
A “discussion on Reddit WallStreetBets last week and weekends. Silver stocks quickly saw their value rise for no apparent reason.“the silver bullion market has become the hot topic of
First Majestic Silver, a Canadian silver mining company with the ticker symbol AG, maintained a share price of around $ 14 per share for most of this month, but then climbed 21% on Thursday after the discussion on Reddit. Fortuna Silver Mines saw its stock price rise 14% on Thursday to $ 7.62. The iShares Silver Trust, an exchange-traded fund that tracks silver prices, rose nearly 6% on Thursday to nearly $ 25 a share.
“$ AG is basically $ GME for Silver,” a Reddit user job Thursday on WallStreetBets, comparing First Majestic Silver stocks to GameStop, adding “Highest free float in the industry, nice leverage on silver, and just broke 10 year resistance as well.”
Silver futures jumped nearly 12% on Monday to over $ 30 an ounce – an eight-year high – after strong gains over the weekend.
On Twitter, #silversqueeze was all the rage as investors turned to the latest market strategy from the WallStreetBets forum on Reddit. The online army of Reddit traders rallied over the past week to defend underprivileged companies like GameStop and AMC, beating hedge funds that had bet company stocks would fall by selling them short, in an astonishing reversal of financial power. pierce Wall Street.
The big short-squeeze
Today, money has become the latest example of the influence of WallStreetBets followers targeting what Reddit forum boosters call inequality in the global financial system.
Michael Every, global strategist at Rabobank, said the online claims include claims that the prices of gold and silver are being suppressed by financial bets against them.
If the price rises sufficiently for an extended period, it is believed, the big investors who bet against gold and silver would eventually have to reverse these transactions, buy back and push commodity prices even higher. That’s part of what helped fuel a massive increase in GameStop last week.
The silver market frenzy also extended to physical purchases of metal, with coin dealers reporting delivery delays as they were overwhelmed by demand.
Silver Mountain, a Netherlands-based bullion trader, said on their website that “due to the extreme volatility of the market, we cannot accept any new orders at this time,” adding that he hoped reopen in the afternoon.
Demand has spilled over into Australian mining stocks, even those that have yet to start producing metal. Silver Mines Ltd., which works on an undeveloped deposit, jumped 50% on Monday, while other mining stocks on the Australian Stock Exchange posted double-digit gains.