Silver prices: big increase as Reddit’s army targets precious metals

Silver futures rose up 8.5% above $ 29 on Sunday night, reaching a five-month high. This follows a 6% increase last week.

In the most recent trades, silver futures were up 6.5%.

People at WallStreetBets are eyeing silver and IShares Silver Trust ETF (SLV) Last week, with some suggesting it could be a way to hurt the big banks they believe are artificially suppressing prices.

“SLV will destroy the largest banks, not just some small hedge funds,” wrote a user of WallStreetBets.

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Another stated that JPMorgan Chase has “been suppressing metals for a long time. This must be epic. LOAD UP.”

Several noted that JP Morgan (JPM) paid a record $ 920 million fine last year to settle charges of involvement in manipulative futures trading linked to precious metals as well as Treasury bills.

The Winklevoss twins, who sued Mark Zuckerberg of Facebook and were the first to support bitcoin, both tweeted support for the advancement of WallStreetBets in silver.

“#Silversqueeze is a rage against the machine”, Tyler Winklevoss tweeted.

“If the silver market is proven to be fraudulent, you’d better believe that the gold market will be next,” tweeted Cameron Winklevoss.

Major retail sites posted notices over the weekend that they were in high demand.

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“Due to the unprecedented demand for physical silver products, we cannot accept any additional orders on a large number of products, until global markets open on Sunday night,” wrote APMEX, which calls itself the world’s largest online retailer of precious metals, in a notice at the top of your site.

SD Bullion warned that “due to the unprecedented demand for silver”, it also could not accept orders until Sunday night. Similar notices have been posted by Money Metals and other sites.

“It is not surprising to see the sharp and abrupt increase in consumer demand overloading the physical supply of silver coins held by resellers in the short term,” Ryan Fitzmaurice, commodity strategist at Rabobank, told CNN Business via email.

However, unlike GameStop and other unwanted actions targeted by WallStreetBets, silver futures have been going strong lately. Hedge funds and other institutional investors were optimistic about silver futures and the precious metal was trading near multi-year highs.

“It’s a dramatically different market setting,” said Fitzmaurice. “I’m not sure how well this new Reddit trading strategy will perform in the futures markets and especially in the notoriously volatile commodity markets.”

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