HOTTER ON METALS: Silver’s bubble trouble from Reddit rebellion

The frenzy of buying activity in silver, attributed to a group of retail investors using the Reddit forum r/WallStreetBets and other social media sites, is waning.

The silver surge – which began on January 27 and saw the price of the industrial metal soar to an eight-year high of more than $30 per oz before slipping to just below $27 per oz by Tuesday January 2 – followed a phenomenal upswell in the stock of GameStop Corp and other Reddit favorites.
But a closer look at their online forums reveals that many Reddit investors actually stayed on the sidelines during the silver rally, fearing that it was a distraction from their GameStop investments and, more importantly, that the banks and hedge funds they were trying to band against were probably also profiting.
Many hedge funds are long-only silver and would have benefited from any short-squeeze attempts, defeating the purpose of any attempted uprising against the so-called financial elite.

As one Reddit investor put it: “Stay away from silver stocks unless you really know what you’re doing. Our mission...

Published

Andrea Hotter

February 02, 2021

20:37 GMT

New York