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Last week, another social media trend started on the Reddit forum r / wallstreetbets, which aims to initiate a big money-strapped squeeze in order to push the precious metal’s price up to $ 1,000 an ounce. However, the trend of money squeezing is controversial, as many wallstreetbets proponents believe hedge funds like Melvin Capital and Citadel are behind the money push.
The ‘Silver Squeeze’ controversy
Over the past week, news.Bitcoin.com reported on the wallstreetbets (WSB) saga unfolding on social media forums and the infamous r / wallstreetbets subreddit. Since the mega short squeeze on Gamestop stocks (GME), the squeeze maneuver has spilled over into a number of other stocks as well. This week, stocks in the Russell 3000 Index (RUA) were targeted, including symbols such as NOK, GOGO, AMCX and FIZZ. But the trend didn’t stop there, as one article in particular called for a “money squeeze.” The WSB Reddit post called for silver squeezing to lower the price of silver from $ 25 an ounce to $ 1,000.
Now that the post has been published, Reddit admins responsible for moderating r / wallstreetbets have deleted the post. But that was long after the post went viral with attendees discussing the pros and cons of trying to squeeze the money. Now the reason people think the cash-strapped squeeze post may be questionable is because a number of WSB Redditors believe the money squeeze was invoked by the funds. speculatives losing money in order to cover their GME losses. There are a large number of Reddit posts warning that people should not participate in the Short Money Squeeze.
A message read:
Citadel is the 5th largest owner of [silver], it is imperative not to “rush” it. These are rewards for spamming hedge fund robots.
People who don’t like the silver trend on WSB have also warned that Melvin Capital Management is also a big money holder. Unfortunately, it is difficult to say where the silver pump wires and poles came from, as many free market supporters are fans of the precious metal sometimes referred to as “ poor man’s gold. ”
Despite this, there are a number of WSB and Redditors fans claiming that the money pump was from hedge fund people and they believe there are impostors everywhere now. Some of these people get irrational, getting mad at anyone who posts about money. Many WSB supporters might feel the pain of Gamestop Corp’s actions. decrease significantly on Monday.
Silver exceeds $ 30 per troy ounce as the Reddit-fueled shopping spree continues into day three. #Silversqueeze pic.twitter.com/mLmasUBrq1
– Holger Zschaepitz (@Schuldensuehner) February 1, 2021
Despite controversy, something sparks demand for money
Despite speculation, there has been some sort of demand for silver prices and obtaining physical bullion. For example, if you are trying to buy an ounce or ounces of silver bullion online, the process is much more complicated now than it was last week. Much of the bullion and coins is either sold out or the prices are drastically increased.
It is a simple arbitration. #Money futures contracts are 28.67. Silver Eagles on Apmex cost $ 41.66, a 45% premium on futures contracts. Obvious opportunity to buy futures and show up on delivery for a 35% discount on physical right? But when they don’t have it, futures = $ 41.66 / oz. #silversqueeze
– Jonathan #SILVERSQUEEZE Mergott (@ Jmergz1985) February 1, 2021
All American Eagles are sold at a number of bullion dealers. Sunday morning, a few reputable merchants halted a large number of silver sales. News.Bitcoin.com’s latest WSB report revealed how SD Bullion sold nearly 10 times more ounces of silver than usual. People visiting bullion dealer websites like Provident, Apmex, and JD Bullion might see unprecedented demand targeting physical silver.
“Over the past week, we’ve seen a dramatic shift in the demand for silver from our customers,” said Ken Lewis, CEO of bullion dealer Apmex. “For example, the ratio of ounces sold per day was running about twice as early in the week and almost four times the average demand at the end of the week,” Lewis added.
The CEO of Apmex further highlighted:
After the markets closed on Friday, we saw demand hitting up to six times per typical business day and over 12 times per normal weekend day. In addition to extremely high demand levels, we are also seeing an increase in the number of new customers. On Saturday only, we added as many new customers as we usually add in a week.
Additionally, the hashtag “#silversqueeze” has been all the rage in the United States and a few other countries on Twitter for the past 48 hours. Late Sunday afternoon, cash and futures were trading at $ 27 per Troy ounce, and Monday morning, cash was trading 7.7% to 29.76 $. The commodity jumped above the $ 30 region and silver prices per ounce traded hands at $ 30.35 per ounce. 0.999 ounce of silver hovers in the $ 29 price handful at time of publication
What do you think of the controversial pressure on money? Let us know what you think of this topic in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
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