After Hertz, AMC and GameStop, the Reddit community is now going for silver as their next short squeeze target. It just started and we’ll have to see if this gets momentum. If so, we might have interesting weeks ahead for silver, and gold too. The days of the Wall Street monopoly on market manipulation seem counted – for good or for bad.
Move over GameStop, Reddit mania is spreading to the precious metals market. Silver prices have jumped up. The spike in demand for silver appears to be related to retail traders in the Reddit forum WallStreetBets, which has helped drive trading activity in heavily shorted stocks like GameStop and AMC Entertainment in recent weeks.
The moves provide another example of the power of a group that has captivated Wall Street and Main Street: WallStreetBets. The Reddit forum sent GameStop (GME), AMC (AMC) and other heavily shorted stocks skyrocketing last week, roiling markets, and crushing some hedge funds that had bet against those stocks. Robinhood, the free-trading app, came under fire after restricting trades in GameStop and other stocks.
People on WallStreetBets have now set their sights on silver and the iShares Silver Trust ETF (SLV) last week, with some suggesting it could be a way to hurt big banks they believe are artificially suppressing prices. "SLV will destroy the biggest banks, not just some little hedge funds," one WallStreetBets user wrote.