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

Screenshot 2021 03 19 at 13.08.16
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.

Read the original article on Business Insider

GameStop buyers pivoting to silver are ‘running their heads into a wood chipper,’ macro analyst Tony Greer says

Silver bars.

  • GameStop investors shouldn’t see silver as their next big opportunity, TG Macro founder Tony Greer told Real Vision.
  • The market analyst said Wall Street Bets fans are choosing bad targets and risking heavy losses.
  • Here are Greer’s seven best quotes from the discussion.
  • Visit Business Insider’s homepage for more stories.

GameStop buyers who have shifted their focus to silver are making a big mistake, TG Macro founder Tony Greer said in a RealVision interview this week.

The market analyst – who edits the Morning Navigator daily newsletter and previously worked in Goldman Sachs’ commodity-trading division – argued that Wall Street Bets members are oversimplifying narratives around meme stocks and other assets, picking poor targets, and putting themselves at risk of heavy losses.

Here are Greer’s seven best quotes from the interview, lightly edited and condensed for clarity:

1. “I’m seeing the younger generation fry itself in meme wars. Unfortunately, you leave a lot of facts out when you start meming the crap out of every story on Earth. We’re watching the Icarus print of the market meme burn itself to shreds right now.”

2. “A whole bunch of them made a whole bunch of money in GameStop. But the reality is the weakest of those traders that waded into GameStop last are the ones that probably got caught holding the bag too, and lost a whole bunch of their own money.”

Read More: Here’s how one SPAC-focused Reddit group is trying to prevent pump and dumps as retail traders throw markets into turmoil

3. “The GameStop guys went after American Airlines, they went after silver. I’m inspired by their spirit, but they’re trying to create a short squeeze in an airline that has been depressed for 10 years, and trying to create a squeeze off of the lows in a holding that every mutual fund has been choking on for 10 months. I’m sorry, man, but you’re just going to wake up sellers.”

4. “They are not comparing apples to apples with GameStop to silver. They’re two different animals, and they will not behave the same when under attack.”

5. “They’re getting an education the hard way. There’s a lot of money being incinerated and there’s a lot of hot air being wasted on this story that’s not taking it in the right direction.”

Read More: Morgan Stanley explains why the frenzied day trading in GameStop, AMC, and other stocks is not proof of a full-blown bubble – and shares its advice for navigating a short-term correction

6. “These guys are running their head into a wood chipper, and it doesn’t seem like it makes sense.”

7. “We mined 800 million ounces of silver a year. We don’t mine any new shares of GameStop ever. These guys, I think, learned that higher prices in precious metals wake up sellers who own the precious metal and have another year’s worth of production that they may like to hedge.”

Read the original article on Business Insider

Silver tumbles 7% from 8-year high as day-trader rally runs out of steam – GameStop and other hot stocks are also sliding

Silver prices soared on Monday but faltered on Tuesday

The silver price tumbled 7% from an 8-year high on Tuesday, as efforts by retail traders to jack up the price fizzled out, and other day-trader targets such as GameStop slumped.

On Monday, silver rose as much as 13% to above $30 an ounce, as amateur investors piled into the market, causing exchange-traded funds to surge and some online retailers to restrict transactions.

The rally in silver appeared to be a continuation of the day-trading frenzy that drove GameStop shares 400% higher last week, with the hashtag #silversqueeze trending on Twitter.

Yet the rally lost impetus on Tuesday morning, with the benchmark silver futures price sliding 7.2% to $27.30 an ounce as of 9.45am ET.

Read More: Jefferies says to buy these 24 stocks that represent its analysts’ highest-conviction picks for 2021

CME Group, which runs the Chicago Mercantile Exchange, increased the margins investors need to post to trade silver futures by 17.9% on Monday, which analysts said tamped down activity.

BlackRock’s iShares Silver Trust exchange-traded fund fell sharply, opening sharply lower on Tuesday at around $25.28 after closing on Monday at $26.76.

Analysts said the rapid turn-around in the price of silver showed the difficulty retail traders face in trying to drive up the price.

Part of the energy behind the silver rally on Monday was that day traders on Reddit and elsewhere had encouraged each other to buy up the metal in the belief that major financial institutions are betting against it.

Many members of the Wall Street Bets forum criticised the idea of targeting silver, however, saying the focus should remain on GameStop. Some noted that major Wall Street banks, and the hedge fund Citadel Advisors, were the biggest holders of the iShares Silver ETF.

Read More: Buy these 4 stocks poised benefit from a spike in silver prices, says RBC Capital Markets – including 2 set to soar 73%

Bank of America strategist Michael Widmer said in a note there were signs that silver purchases “in recent days have come from both the retail and institutional space.”

Adrian Ash, director of research at precious-metals platform BullionVault, told Insider that the sheer size of the silver market was a major problem for day traders thinking of targeting the metal.

“While silver is much more volatile than gold – with wholesale volumes only one-seventh the value – [it’s] still massively larger than GameStop at $8 billion per day,” Ash said.

GameStop shares slid 42% at the opening bell on Tuesday morning to around $125.00 as the retail frenzy appeared to peter out. Movie theater chain AMC was down around 40% to around $8.

Read the original article on Business Insider

Silver spikes 13% to 8-year high as Reddit day traders turn their buying power towards a fresh target

GettyImages 458005108
  • The price of silver jumped as much as 13%, to $30.35 per ounce, on Monday as amateur investors piled in. The metal hovered near an eight-year high.
  • The so-called silver squeeze follows the Reddit-driven surge in GameStop shares last week.
  • But the rally sparked controversy on Reddit, with users saying GameStop should remain the target.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

The price of silver on Monday jumped as much as 13%, to $30.35 per ounce, hitting an 8-year high. The surge pushed up shares of silver-mining companies and causing retail sites to limit trading amid the latest attempt of amateur investors to squeeze Wall Street.

But the so-called silver squeeze proved controversial on the Reddit forum Wall Street Bets, with many users arguing the army of day traders should keep targeting GameStop shares and not shift their sights elsewhere.

Last week, traders organizing themselves on Reddit realized their power when they bid up GameStop shares by more than 200%, hitting hedge funds and others who had been betting the price would fall for more than $19 billion.

On Monday morning, the pivot towards other targets picked up speed, with the hashtag #silversqueeze trending on Twitter. Online financial personalities were cheering on day traders, with bitcoin investor Cameron Winklevoss tweeting: “If Silver market is proven to be fraudulent, you better believe Gold market will be next.”

It has risen around 17% over the last five days as Wall Street Bets members encouraged each other to buy up silver in the belief that major financial institutions are betting the price will fall.

Read more: Buy these 4 stocks poised benefit from a spike in silver prices, says RBC Capital Markets – including two set to soar 73%

The latest data from the US regulator showed money managers are betting the price will rise, however.

BlackRock’s iShares Silver Trust surged more than 10% on Monday. The world’s biggest silver exchange-traded fund saw inflows of close to $1 billion on Friday.

Shares in silver companies jumped. Miner Fresnillo’s London shares soared 17.81% while Polymetal International was 6.93% higher.

Silver retail sites were left struggling to keep up with the demand. Money Market said it would not be taking any further silver orders until mid-Monday morning due to “extreme demand”. APMEX said it was expecting processing delays of up to three days.

Yet the move into silver was controversial on the Reddit forum Wall Street Bets. Some users noted that huge investment banks, and the hedge fund Citadel Advisors, were the biggest holders of the iShares Silver ETF.

“By buying silver/going long on silver, you would be directly putting money into the pockets of the EXACT HEDGE FUNDS ON THE OTHER SIDE OF $GME,” one user posted. Others said the Reddit army should focus their efforts on driving up the GameStop share price, which was around 8% higher in pre-market.

Milan Cutkovic, market analyst at trading platform Axi, said silver is a “far more difficult” market to move than smaller stocks such as GameStop. Yet he said that “last week’s events showed that the impact of the retail frenzy should not be underestimated.”

Read more: Buy these 26 heavily shorted stocks as retail traders trigger wild rallies in Wall Street’s least-liked names, Wells Fargo says

Read the original article on Business Insider

Reddit day traders look to silver as the next short-squeeze after being restricted from hot stocks

GettyImages 1205399506
Silver bullion

Reddit day traders are turning to silver for their next short-squeeze target after being restricted from hot stocks like GameStop and AMC on some trading platforms.

Reddit’s WallStreetBets has been the talk of the market over the past few weeks as the forum used retail traders’ purchasing power to put the squeeze on institutional investors and short-sellers.

Now it appears the day traders of Reddit have found their next target in precious metals.

“Silver Bullion Market is one of the most manipulated on earth. Any short squeeze in silver paper shorts would be EPIC,”  a user on Reddit’s WallStreetBets posted. “We know billion banks are manipulating gold and silver to cover real inflation. Both the industrial case and monetary case, debt printing has never been more favorable for the No. 1 inflation hedge Silver.”

Read More: A Wall Street firm tweaked the Shiller PE ratio to create a superior gauge of the strongest stock-market returns – and broke down why the beloved metric won’t cut it anymore

Another post on the site said, “inflation-adjusted Silver should be at 1000$ instead of 25$. Why not squeeze $SLV to real physical price. Think about the Gainz. If you don’t care about the gains, think about the banks like JP MORGAN you’d be destroying along the way.”

The iShares Silver Trust gained as much as 7.2% on Thursday morning after the posts, a significant move for an ETF that normally has low volatility.

Spot silver also gained 6.8% before paring gains, while individual names in the industry like First Majestic Silver were probably the biggest beneficiaries of the move.

Shares in First Majestic soared as much as 39% before paring gains. Still, First Majestic is up over 20% as of 2:35 PM EST.

“There’s a short squeeze going on in silver. The ‘hoodies’ are all rolling into silver, and the party is on,” Phil Streible, chief market strategist at Blue Line Futures, told Bloomberg. “All those other stocks like GameStop and AMC, they’re dumping because they’ve been restricted, and they gotta go into other short opportunities, and silver is an easily identifiable target.”

Read More: ‘We’re very surprised we didn’t underperform in the 4th quarter’: Cathie Wood and her analysts break down their stock-selection process and the top 10 picks that contributed to the outperformance of ARK ETFs in Q4 2020

Silver prices have been muted for months after falling from highs of $28.30 an ounce last August.

The precious metal is generally not a volatile commodity, making Thursday’s spike in price notable. Spot silver has traded between $14 and $28 for the past five years.

Precious metal bulls are taking note of the price action. Peter Schiff, CEO of Euro Pacific Capital, said on Twitter, “It looks like the #reddit raiders have turned their attention to #silver stocks. They’re getting smarter. Silver stocks are actually cheap, and represent good investment value. The fact that some investors were foolish enough to short these stocks makes their trade even better.”

Read the original article on Business Insider