This past week, another social media trend started on the Reddit forum r / wallstreetbets, which aims to launch a big silver short print to push the price of precious metal up to $ 1000 per ounce. However, the silver trend continues with controversy, as many supporters of wall street bets believe that hedge funds such as Melvin Capital and Citadel are putting pressure behind the silver.
The controversial ‘Silver Squeeze’
This past week, news.Bitcoin.com reported on the wallstreetbets (WSB) saga taking place on social media forums and the infamous subreddit r / wallstreetbets. Since the mega short press on the Gamestop Shares (GME), the printing press has also plunged into a number of other stocks. This week, the shares of the Russell 3000 Index (RUA) were targeted, including tickers such as NOK, GOGO, AMCX and FIZZ. But the trend does not stop there, because one post in particular demanded a ‘silver print’. The WSB Reddit post asked the silver press to push the price of silver from $ 25 per ounce to $ 1000.
Since the post was published, the Reddit administrators responsible for moderating r / wallstreetbets have removed the message. But that was long after the participants went viral by discussing the pros and cons of trying to squeeze silver. The reason why people think that the silver short-press may be shadowy is because a number of WSB Redditors believe that the silver-presses were called in by the hedge funds to cover their GME losses. There are a large number of Reddit posts that warn people not to participate in the silver short print.
One report said:
Citadel is the 5th largest owner of [silver], it is essential that we do not ‘push’ it. These are grants for spamming hedge funds.
The people who do not like the silver trend on WSB also warned that Melvin Capital Management is also a big silver holder. Unfortunately, it is difficult to see where the silver pump wires and poles come from, as there are many free market supporters who are fans of the precious metal that is sometimes called the ‘poor gold’.
Despite this, there are a number of WSB supporters and Redditors who claim that the silver pump comes from hedge fund people, and they believe that there are scammers everywhere now. Some of these people become irrational and get angry at anyone who posts about silver. Many WSB supporters may feel that Gamestop Corp’s shares will fall significantly on Monday.
Silver rises above $ 30 per troy ounce as the buying spree fueled by Reddit continues for the third day. #Silversqueeze pic.twitter.com/mLmasUBrq1
– Holger Zschaepitz (@Schuldensuehner) 1 February 2021
Despite controversy, something is demanding silver
Despite the speculation, a kind of question was raised regarding the price of silver and the acquisition of physical bullies. For example, if you have to buy an ounce or ounce of silver, the process is much more complicated now than it was last week. A large portion of bars and coins are either sold out or the prices are significantly marked.
This is a simple arbitrage. #Silver futures is 28.67. Silver Eagles on Apmex is $ 41.66, which is a 45% premium on futures contracts. Obvious opportunity to buy and sell futures contracts for a 35% discount on physical law? But if they do not have it, Futures = $ 41.66 / ounce. #silversqueeze
– Jonathan #SILVERSQUEEZE Mergott (@ Jmergz1985) 1 February 2021
All of the American Eagles have been sold out at a number of bully dealers. On Sunday morning, a few wholesalers stopped a large number of silver sales. News.Bitcoin.com’s most recent WSB report revealed how SD Bullion sold almost ten times the number of ounces of silver than usual. People who visit websites of bully traders like Provident, Apmex and JD Bullion could see the unprecedented demand directed at physical silver.
“Over the past week, we’ve seen a dramatic shift in the Silver demand from our customers,” said Ken Lewis, gold retailer Apmex’s CEO. “The ratio of ours sold per day, for example, ran about twice earlier in the week and by the end of the week closer to four times the average demand,” Lewis added.
The CEO of Apmex further emphasizes:
After the markets closed on Friday, we saw that demand hit as many as six times a normal business day and more than 12 times a normal weekend day. Combined with the extremely high demand levels, we are also seeing an increase in new customers. Just on Saturday, we added just as many new customers as we usually add within a week.
In addition, the hashtag “#silversqueeze” has been on Twitter across the United States and a few other countries for the past 48 hours. By late afternoon on Sunday, silver and futures were trading at $ 27 per troy-ounce, and by Monday morning, silver was trading 7.7% higher at $ 29.76. Commodity rose above the $ 30 region, swapping silver prices per ounce for $ 30.35 per ounce. One ounce of .999 silver floats in the $ 29 price handle at the time of publication
What do you think of the controversial silver purple? Let us know what you think of this topic in the comments below.
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