Last week, another social media trend began on the Reddit forum r / wallstreetbets aimed at instigating a major silver short squeeze to push the price of the precious metal to $ 1,000 an ounce. However, the silver squeeze trend is controversial as numerous Wallstreetbets supporters believe that hedge funds like Melvin Capital and Citadel are behind the silver push.
The controversial “Silver Squeeze”
Last week, news.Bitcoin.com reported on the Wallstreetbets (WSB) saga that took place on social media forums and the infamous subreddit R / Wallstreetbets. Since the mega short squeeze on the Gamestop (GME) stocks, the squeeze maneuver has affected a number of other stocks as well. This week stocks were selected from the Russell 3000 Index (RUA), including tickers such as NOK, GOGO, AMCX and FIZZ. But the trend didn’t stop there, as one post in particular called for a “silver squeeze”. The WSB Reddit Post called for silver pressing to increase the price of silver from $ 25 an ounce to $ 1,000.
Now that the post has been published, the Reddit administrators who are responsible for moderating r / wallstreetbets have removed the post. But that was long after the news went viral by attendees discussing the pros and cons of trying to press silver. The reason people believe the silver short squeeze post might be seedy is because a number of WSB redditors believe the silver squeeze was claimed by the hedge funds that lost money, to cover their GME losses. There are a large number of Reddit posts warning that people should not participate in the Silver Short Squeeze.
One post said:
Citadel is the fifth largest owner of [silver]It is imperative that we do not “squeeze” it. These are hedge fund bots that spam awards.
Some WSB attendees believe that the Silver Squeeze was started by hedge funds like Citadel and Melvin. Citadel is the fifth largest silver shareholder according to records. However, many of these hedge funds own paper silver and stocks of mining companies that are different from the physical gold market. Some people think whether or not the hedge funds are doing something shady, it doesn’t matter as silver has always been viewed as solid money.
The folks who don’t like the silver trend at WSB have also warned that Melvin Capital Management is a big silver holder too. Unfortunately, it’s hard to say where the silver pump strings and posts came from as there are many free market fans out there who are fans of the precious metal sometimes referred to as “poor man’s gold”.
Even so, there are a number of WSB fans and Redditors who claim the silver pump came from hedge fund folks and they believe there are scammers everywhere now. Some of these people get irrational and get mad at anyone who writes on silver. Many WSB supporters may feel that the pain in Gamestop Corp. shares eased significantly on Monday.
Silver surges above $ 30 an ounce as the Reddit-fueled spending spree lingers on Day 3. #Silversqueeze pic.twitter.com/mLmasUBrq1
– Holger Zschaepitz (@Schuldensuehner) February 1, 2021
Despite all the controversy, something is sparking a silver demand
Despite the speculation, some demand for silver prices and the procurement of physical gold has been sparked. For example, if you’re trying to buy an ounce or ounce of silver bars online, the process is far more complicated now than it was last week. Much of the bars and coins are either sold out or prices have risen significantly.
This is a simple arbitrage. # Silver futures are 28.67. Silver Eagles on Apmex are priced at $ 41.66, which is a 45% premium on futures. Obvious opportunity to buy futures and stand for delivery with a 35% discount on the physical right? But if they don’t have it, Futures = $ 41.66 / ounce. #silversqueeze
– Jonathan #SILVERSQUEEZE Mergott (@ Jmergz1985) February 1, 2021
All American Eagles are sold out at a number of bullion dealers. On Sunday morning, some well-known dealers stopped a large number of silver sales. News.Bitcoin.com’s latest WSB report revealed how SD Bullion was selling nearly ten times the number of silver ounces than usual. People who visit the sites of gold bullion dealers like Provident, Apmex, and JD Bullion have seen the unprecedented demand for physical silver.
“Over the past week our customers’ demand for silver has changed dramatically,” said Ken Lewis, CEO of gold bullion dealer Apmex. “For example, the ratio of ounces sold per day was roughly twice earlier in the week and closer to four times the average demand at the end of the week,” added Lewis.
The Apmex CEO further emphasized:
After the markets closed on Friday, demand was six times as high as on a typical business day and more than twelve times as high as on a normal weekend day. In connection with the extremely high demand, we are also seeing an increase in new customers. On Saturday alone we added as many new customers as we normally add in a week.
Additionally, the hashtag “#silversqueeze” has been trending on Twitter for the past 48 hours in the US and a few other countries. Late Sunday afternoon, spot silver and futures were trading at $ 27 an ounce, and on Monday morning spot silver was up 7.7% at $ 29.76. The commodity jumped above the $ 30 region, and silver prices per ounce traded hands at $ 30.35 an ounce. An ounce of .999 silver is hovering in the $ 29 price range at time of release
What do you think of the controversial silver pressing? Let us know what you think on this matter in the comments section below.
Tags in this story
.999 Ounce, #SilverSqueeze, Ag, Apmex, Gold Bar, Citadel, Gold, Hedge Fund, JD Gold Bar, Melvin, One Ounce Silver, Physical Silver, PMS, Precious Metals, Provident, SD Gold Bar, Silver, Silver Dealer, Silver Short Squeeze, Silver Squeeze , Squeeze, troy ounce
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