Home Breaking News Silver futures jump more than 7% as Reddit traders try their squeeze...

Silver futures jump more than 7% as Reddit traders try their squeeze play with the metal

132
0
Silver futures jump more than 7% as Reddit traders try their squeeze play with the metal

Futures contracts for silver surged higher early Monday morning as the Reddit-fueled whisper in extremely shorted shares looks to be spilling over into the metals market.

Fetch 22 situation silver costs jumped more than 10.5% at around 3: 10 a.m. ET, trading at $29.85 an oz.. It comes amid the excellent switch for silver futures since at least 2013.

Early Newspaper

The exciting switch higher builds off beneficial properties for silver and silver-associated equities plain last week. Silver mining shares Coeur Mining and Pan American Silver rose 16.9% and 14.7%, respectively, on Thursday and Friday. The iShares Silver Have confidence jumped 6.7% one day of those two sessions.

The spike in ask for silver looks to be associated to retail traders in the Reddit forum WallStreetBets, which has helped force trading activity in heavily shorted shares bask in GameStop and AMC Entertainment in contemporary weeks.

The forum had more than one active threads devoted to silver on Sunday evening. The phrase “#silversqueeze” was moreover trending on Twitter.

The switch in silver was touted by investors who are bullish on cryptocurrencies bask in Bitcoin, which admire the contemporary digital assets in fragment as replacements for conventional metals.

Cameron Winklevoss, co-founder of cryptocurrency firm Gemini, talked about on twitter that, “The ramifications of a #silversqueeze can now not be underestimated. If or now not it is uncovered that there are more paper claims on silver than proper silver, now not totally would payoff be monumental, however gold could presumably presumably presumably be subsequent. #Bitcoin fixes this.”

The dramatic spikes in GameStop and other heavily shorted shares had been due in fragment to a short squeeze, which is a phenomenon the set investors who’ve in mind bet against a inventory are forced to purchase shares to duvet their positions as the title strikes higher.

Melvin Capital, if truth be told one of the hedge funds who before the total lot had short positions in GameStop, lost 53% in January.

Source:
Silver futures jump more than 7% as Reddit traders try their squeeze play with the metal