A Reddit forum founder who got banned from Wall Street Bets says the group is ‘tired’ of talking about GameStop – and that they really were behind the silver short-squeeze

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Ivan Bayoukhi, founder of WallStreetSilver.


Ivan Bayoukhi, the founder of subreddit Wall Street Silver, told Kitco News this week Wall Street Bets users are tired of talking about GameStop, and they did in fact trigger the silver short-squeeze in January, even though they said at the time this was not the case.

But the notorious subreddit had claimed they were not the ones behind silver’s rally as they were more focused on members buying into GameStop, AMC, and other heavily shorted stocks.

“The Silver Squeeze is a hedge-fund coordinated attack so they can keep fighting the $GME fight,” one user wrote last month.

Bayoukhi, who was among users calling for betting on silver, said one can just scroll back five to six months on the WSB forum to find several silver-related posts. Some posts would even mention the Hunt Brothers who managed to push silver prices from $6 an ounce to over $50 an ounce within a year more than three decades ago, he said.

“We’ve kept track of absolutely everything,” he said. “That’s in our extras section, or the information section on Wall Streets Silver reddit. We literally have a section for Wall Streets Bets posts for silver that they’ve deleted or kept up.”

But anyone attempting to post about silver on WSB, including Bayoukhi, was banned from the community because the majority of them didn’t want focus to stray from GameStop, he said. Still, at least 30 to 40% of the WSB forum loves silver, he said. This indicates there was conflicting opinion among members of the subreddit, with some wanting to continue the GameStop short-squeeze, while others wanted to expand it to silver.

“That’s why most of their users are coming to us for silver, because they’re tired of just talking about one stock all day.”

Shortly after Reddit day traders drove up the prices of GameStop earlier this year, silver prices rocketed to their highest since 2013, driven by messages urging Reddit day traders to buy the metal and hike its price. Some members of the community claimed to not be a part of it and banned posts that mentioned silver.

Bayoukhi compared silver to fiat currencies. When asked why he likes silver, he said traditional currencies aren’t backed by anything and 99% of them have failed historically. On the other hand, silver is used in everyday life, such as in solar panels or industrial goods, has affordability, and works as a real store of value and hedge against inflation, he said.

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Gold slumps to lowest in eight months as market ‘finally wakes’ up’ to spiking bond yields

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  • Gold hit an intraday low of $1,714 an ounce, trading at the lowest prices since early June 2020. 
  • Gold funds logged a weekly outflow of $500 million, extending a run of weekly losses. 
  • Gold is competing against higher yields and hurt by a rising dollar. 
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Gold prices Friday slumped to their lowest since mid-2020, under pressure as bond yields continued to spike while investors yanked money out of gold funds.

Gold prices fell as much as 3.4% to an intraday low of $1,714.90 an ounce on a continuous-contract basis and traded at levels not seen since early June 2020. For the week, the metal was on course to drop 3% and has lost roughly 9% so far this year.  

There were outflows of $500 million from gold funds this week, according to Bank of America in its Flow Show update Friday. Gold funds logged the biggest weekly outflow since mid-November and their 16th in the past 20 weeks, according to fund tracker EPFR on Friday.

Gold’s been suffering at the hands of higher bond yields as well as gains for the US dollar. Yields on US government bonds have raced higher this week, making gold, which offers no yield, less attractive for investors to own.

The yield on the 10-year Treasury popped above 1.6% on Thursday, a sharp move from 1.3% in less than a week. Yields have climbed as investors sell off bonds in part as they price in inflation expectations on the view that the world’s largest economy will continue recovering from the recession brought on by the COVID-19 health crisis.

Dollar-denominated gold has also been weighed by a recent increase in the greenback’s value.

“The USD is bid as FX finally wakes up to what is happening in fixed income and equities around the world,” said Brad Bechtel, global head of FX at Jefferies, in a note Friday in which he pointed out a rise in the Bloomberg Dollar Spot index. That index rose 0.6% to 1,135 during Friday’s session, moving around its highest since early February.

While gold funds saw outflows, it was a “huge week” for inflows into equity funds of $46.2 billion, the third-largest ever weekly inflow, said BofA, adding that bond funds took in $7.1 billion.

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