‘Rich Dad Poor Dad’ author Robert Kiyosaki expects an epic market crash, blames the Fed, and loves bitcoin. Here are 16 of his best tweets

Robert Kiyosaki against a green background.
Robert Kiyosaki.

  • “Rich Dad Poor Dad” author Robert Kiyosaki expects a brutal crash across financial markets.
  • The personal-finance guru recommends buying bitcoin, gold, and silver before the downturn.
  • Kiyosaki has also blasted the Federal Reserve and celebrated Reddit traders.
  • See more stories on Insider’s business page.

“Rich Dad Poor Dad” author Robert Kiyosaki has warned of a devastating market crash, slammed the Federal Reserve for devaluing the US dollar, and repeatedly urged investors to buy gold, silver, and bitcoin in tweets over the past 12 months.

The personal-finance guru has also cheered on Reddit traders, analyzed Warren Buffett’s portfolio tweaks, and advised investors to capitalize when asset prices tumble.

Here are Kiyosaki’s 16 best tweets in the past year, lightly edited for clarity:

1. “The best time to prepare for a crash is before the crash. The biggest crash in world history is coming. The good news is the best time to get rich is during a crash. Bad news is the next crash will be a long one. Get more gold, silver, and bitcoin while you can. Take care.” – June 28, 2021.

2. “Biggest bubble in world history getting bigger. Biggest crash in world history coming. Buying more gold and silver. Waiting for bitcoin to drop to $24k. Crashes best time to get rich. Take care.” – June 19, 2021.

3. “Bitcoin crashing. Great news. When price hits $27,000, I may start buying again. A lot will depend upon global-macro environment. Remember the problem is not gold, silver, or bitcoin. Problem are the incompetents in government, Fed & Wall Street. Remember gold was $300 in 2000.” – May 30, 2021.

4. “Fed wants inflation to pay debt with cheaper $. Fed will raise interest rates causing stock, bond, real estate & gold crash. Biggest problem is Boomer retirement. Social Security Medicare & America broke. Fed to print more fake money. Stick with gold, silver, and bitcoin.” – May 17, 2021.

5. “ARE YOU READY? Boom, Bust, Mania, Crash, Depression. Mania in markets today. Prepare for biggest crash, depression in world history. What will Fed do? Print more money? Save more gold, silver, bitcoin.” – April 17, 2021.

6. “After 2008 Subprime Crash, Fed and Treasury printed $700 billion. 2021 Fed and Treasury to print $7 trillion. Biggest crash in history coming. Worst investment is FANG stocks. Anyone not buying gold, silver, bitcoin now is an idiot.” – April 11, 2021.

7. “Anyone who says ‘money doesn’t make you happy’ is a sick puppy who has never been broke. Money is a drug. It makes people happy. Problem is when drug wears off, people get unhappy. Buy gold, silver, bitcoin, real money and stay happy.” – March 21, 2021.

8. “Why do I like gold, silver, bitcoin? LIQUIDITY. People rushing in to buy a house at top of real estate market. When real estate crashes cannot get out. Real estate not liquid. I own 8,000 rental properties. Bought during crashes. In 2021, I prefer liquidity of gold, silver, bitcoin.” – February 20, 2021.

9. “I am excited about Reddit going after the manipulated silver market. I was not in GameStop but I am in silver. If you have seen me on TV ads for Lear Capital, I drank the silver Kool-Aid way back in 1964, the year silver coins became fake silver. God bless Reddit traders.” – January 30, 2021.

10. “GameStop’s BIGGEST LOSERS are old people. I love Reddit kicking Hedge Funds’ butts. Keep it up. Unfortunately the biggest losers are pension funds managed by Hedge Funds. Thank god I don’t need a pension. If you are young, learn to kick Wall St’s butt and never need a pension.” – January 30, 2021.

11. “The EVERYTHING CRASH is coming. Since 1987, world has been in EVERYTHING BUBBLE. Now all crashing. Prices of gold, silver, bitcoin will crash too. US dollar to rise. Be patient. Massive money printing ahead, eventually destroying dollar. Time to buy more gold, silver, bitcoin coming.” – October 28, 2020.

12. “BOOMERS had it easy. Plenty of jobs, low-cost real estate, rising stock market. MILLENNIALS have it hard. 9/11, 2008 real estate crash, now Covid-19. Good news. Millennials are tech savvy. Boomers are not. Bitcoin-Block chain-Digital currencies give Millennials head start into the future.” – September 9, 2020.

13. “BUFFETT buys to SELL. He sells Coca-Cola, Geico Insurance, Gillette razor blades. He is now selling Barrick Gold. His gold costs $1,000 to mine. Sells for $2,000. Barrick has tons of gold to sell in the future. Smart. How much gold, silver, bitcoin do you have to sell in the future?” – August 22, 2020.

14. “WHY BUFFETT is OUT OF BANKS. Banks bankrupt. MAJOR BANKING CRISIS COMING FAST. Fed & Treasury to take over banking system? Fed and Treasury ‘helicopter fake money’ direct to people to avoid mass rioting? Not a time to ‘think about it.’ How much gold, silver, bitcoin do you have?” – August 21, 2020.

15. “WHY I buy gold, silver, bitcoin? Three words: No Counterparty Risk. Stocks, Bonds, Business, Real Estate all have Counterparty Risk. Gold, silver, bitcoin are money. They do not depend on people to be money. I own gold, silver, bitcoin in case I need to run from human insanity.” – August 17, 2020.

16. “SAVERS ARE LOSERS. CASH IS TRASH. TREASURIES ARE THIEVES working for the Fed. GOT THE MESSAGE? Central Banks have an avowed goal of decreasing the value of cash by 2% per year. Please don’t be a loser. Open your mind and get smarter about your money. Got gold, silver & bitcoin?” – August 12, 2020.

Read the original article on Business Insider

‘Rich Dad Poor Dad’ author Robert Kiyosaki warned a historic market crash is coming, trumpeted bitcoin, and championed Warren Buffett’s love of brands in a recent interview. Here are the 10 best quotes

Robert Kiyosaki.
Robert Kiyosaki.

  • Robert Kiyosaki expects financial markets to suffer their most devastating crash ever.
  • The “Rich Dad Poor Dad” author said he bought bitcoin at $9,000 and wants it to get cheaper again.
  • Kiyosaki dislikes stocks, and encourages young people to become entrepreneurs instead of employees.
  • See more stories on Insider’s business page.

Robert Kiyosaki warned financial markets are careening towards their worst crash ever, celebrated the bitcoin sell-off as he wants to buy more, and compared Warren Buffett’s investing philosophy to his own in a recent Yahoo Finance interview.

The “Poor Dad Rich Dad” author also slammed the US government for borrowing too much and devaluing the dollar, trumpeted the value of debt to investors, and encouraged young people to start businesses instead of becoming employees.

Kiyosaki – a personal-finance guru – has been criticizing federal-stimulus programs, warning of a historic market bubble, and urging investors to stockpile bitcoin, gold, and silver for several months now.

Here are Kiyosaki’s 10 best quotes from the interview, lightly edited and condensed for clarity:

1. “The next crash is basically an avalanche waiting for the last snowflake. Since 2008, all the federal government has been doing is piling more debt on the mountainside, and they’re just waiting for the next snowflake to hit. It’s going to be the biggest crash in world history.” – Kiyosaki attributed the snowflake analogy to “Currency Wars,” a book by economist and author Jim Rickards.

2. “They teach you to go to school, get a job, and work for this garbage. I just compare this garbage to what gold, silver, and bitcoin is.” – predicting the US dollar will become as worthless as the Zimbabwean dollar, and arguing gold, silver, and bitcoin will retain much more of their value.

3. “I entered at $9,000. I’m still in the money, and I’m very happy it’s coming down so I can buy more. Simple.” – commenting on bitcoin’s price tumbling from north of $60,000 in April to about $34,000 today.

4. “When the yuan becomes crypto, when the dollar becomes crypto or the fedcoin, what will that do to the banking system? That’s the most important question you can ask today.” – discussing the potential impacts of central-bank digital currencies, or CBDCs.

5. “I don’t own any stocks, I don’t like stocks. I don’t have to own stocks because I’m an entrepreneur. I build my own assets like the Rich Dad company, an international brand. A brand is what Warren Buffett invests in, like McDonald’s or Gillette or Coca-Cola.”

6. “To the young people I say, ‘Don’t be an employee, become an entrepreneur like Bill Gates or Elon Musk or those characters, then you get really rich.’ But if you can just sit there and play the stock market, you may as well play bitcoin too.”

7. “Build a business that does well in crashes, booms, or busts. Young people shouldn’t go to school and become employees, they should become entrepreneurs and capitalists, and build businesses that create jobs.”

8. “These other goofballs are saying, ‘Get out of debt, live debt-free.’ Every time I have a chance to buy real estate, I borrow as much money as I can. I think I’m about $1.2 billion in debt. I make millions of dollars a month in cash flow and I pay no taxes, because the tax system incentivizes people who use debt. Everything they teach you in business school is a bunch of BS.”

9. “The real guys like Trump and me, we’re in debt up to our eyeballs, and we pay no taxes. That’s what we teach, and it’s different than everybody else.”

10. “I’m not saying that having a stock portfolio is right or wrong, but there are other alternatives. Just open your eyes and see how the rich are really getting richer.”

Read the original article on Business Insider

‘Rich Dad Poor Dad’ author Robert Kiyosaki has warned of an epic market crash, blasted the Fed, and trumpeted bitcoin. Here are 16 of his best tweets

"Rich Dad Poor Dad" author Robert Kiyosaki
Robert Kiyosaki.

  • “Rich Dad Poor Dad” author Robert Kiyosaki expects a brutal crash across financial markets.
  • The personal-finance guru recommends buying bitcoin, gold, and silver before the downturn.
  • Kiyosaki has also blasted the Federal Reserve and celebrated Reddit traders.
  • See more stories on Insider’s business page.

“Rich Dad Poor Dad” author Robert Kiyosaki has warned of a devastating market crash, slammed the Federal Reserve for devaluing the US dollar, and repeatedly urged investors to buy gold, silver, and bitcoin in tweets over the past 12 months.

The personal-finance guru has also cheered on Reddit traders, analyzed Warren Buffett’s portfolio tweaks, and advised investors to capitalize when asset prices tumble.

Here are Kiyosaki’s 16 best tweets in the past year, lightly edited for clarity:

1. “The best time to prepare for a crash is before the crash. The biggest crash in world history is coming. The good news is the best time to get rich is during a crash. Bad news is the next crash will be a long one. Get more gold, silver, and bitcoin while you can. Take care.” – June 28, 2021.

2. “Biggest bubble in world history getting bigger. Biggest crash in world history coming. Buying more gold and silver. Waiting for bitcoin to drop to $24k. Crashes best time to get rich. Take care.” – June 19, 2021.

3. “Bitcoin crashing. Great news. When price hits $27,000, I may start buying again. A lot will depend upon global-macro environment. Remember the problem is not gold, silver, or bitcoin. Problem are the incompetents in government, Fed & Wall Street. Remember gold was $300 in 2000.” – May 30, 2021.

4. “Fed wants inflation to pay debt with cheaper $. Fed will raise interest rates causing stock, bond, real estate & gold crash. Biggest problem is Boomer retirement. Social Security Medicare & America broke. Fed to print more fake money. Stick with gold, silver, and bitcoin.” – May 17, 2021.

5. “ARE YOU READY? Boom, Bust, Mania, Crash, Depression. Mania in markets today. Prepare for biggest crash, depression in world history. What will Fed do? Print more money? Save more gold, silver, bitcoin.” – April 17, 2021.

6. “After 2008 Subprime Crash, Fed and Treasury printed $700 billion. 2021 Fed and Treasury to print $7 trillion. Biggest crash in history coming. Worst investment is FANG stocks. Anyone not buying gold, silver, bitcoin now is an idiot.” – April 11, 2021.

7. “Anyone who says ‘money doesn’t make you happy’ is a sick puppy who has never been broke. Money is a drug. It makes people happy. Problem is when drug wears off, people get unhappy. Buy gold, silver, bitcoin, real money and stay happy.” – March 21, 2021.

8. “Why do I like gold, silver, bitcoin? LIQUIDITY. People rushing in to buy a house at top of real estate market. When real estate crashes cannot get out. Real estate not liquid. I own 8,000 rental properties. Bought during crashes. In 2021, I prefer liquidity of gold, silver, bitcoin.” – February 20, 2021.

9. “I am excited about Reddit going after the manipulated silver market. I was not in GameStop but I am in silver. If you have seen me on TV ads for Lear Capital, I drank the silver Kool-Aid way back in 1964, the year silver coins became fake silver. God bless Reddit traders.” – January 30, 2021.

10. “GameStop’s BIGGEST LOSERS are old people. I love Reddit kicking Hedge Funds’ butts. Keep it up. Unfortunately the biggest losers are pension funds managed by Hedge Funds. Thank god I don’t need a pension. If you are young, learn to kick Wall St’s butt and never need a pension.” – January 30, 2021.

11. “The EVERYTHING CRASH is coming. Since 1987, world has been in EVERYTHING BUBBLE. Now all crashing. Prices of gold, silver, bitcoin will crash too. US dollar to rise. Be patient. Massive money printing ahead, eventually destroying dollar. Time to buy more gold, silver, bitcoin coming.” – October 28, 2020.

12. “BOOMERS had it easy. Plenty of jobs, low-cost real estate, rising stock market. MILLENNIALS have it hard. 9/11, 2008 real estate crash, now Covid-19. Good news. Millennials are tech savvy. Boomers are not. Bitcoin-Block chain-Digital currencies give Millennials head start into the future.” – September 9, 2020.

13. “BUFFETT buys to SELL. He sells Coca-Cola, Geico Insurance, Gillette razor blades. He is now selling Barrick Gold. His gold costs $1,000 to mine. Sells for $2,000. Barrick has tons of gold to sell in the future. Smart. How much gold, silver, bitcoin do you have to sell in the future?” – August 22, 2020.

14. “WHY BUFFETT is OUT OF BANKS. Banks bankrupt. MAJOR BANKING CRISIS COMING FAST. Fed & Treasury to take over banking system? Fed and Treasury ‘helicopter fake money’ direct to people to avoid mass rioting? Not a time to ‘think about it.’ How much gold, silver, bitcoin do you have?” – August 21, 2020.

15. “WHY I buy gold, silver, bitcoin? Three words: No Counterparty Risk. Stocks, Bonds, Business, Real Estate all have Counterparty Risk. Gold, silver, bitcoin are money. They do not depend on people to be money. I own gold, silver, bitcoin in case I need to run from human insanity.” – August 17, 2020.

16. “SAVERS ARE LOSERS. CASH IS TRASH. TREASURIES ARE THIEVES working for the Fed. GOT THE MESSAGE? Central Banks have an avowed goal of decreasing the value of cash by 2% per year. Please don’t be a loser. Open your mind and get smarter about your money. Got gold, silver & bitcoin?” – August 12, 2020.

Read the original article on Business Insider

‘Rich Dad Poor Dad’ author Robert Kiyosaki says an epic market crash is coming – and tells investors to buy bitcoin, gold, and silver

Robert Kiyosaki.
Robert Kiyosaki, the author of “Rich Dad Poor Dad.”

  • The “Rich Dad Poor Dad” author Robert Kiyosaki expects a historic crash across financial markets.
  • Kiyosaki advised investors to buy gold, silver, and bitcoin ahead of a downturn.
  • The personal-finance guru cheered on Robinhood and Reddit traders earlier this year.
  • See more stories on Insider’s business page.

Financial markets are barreling toward a brutal downturn, and investors should bank on cryptocurrencies and precious metals to weather the fallout, Robert Kiyosaki, the author of “Rich Dad Poor Dad,” tweeted on Monday.

“The biggest crash in world history is coming,” he said, adding that sell-offs create buying opportunities but that markets wouldn’t recover for a long time. “Get more gold, silver, and bitcoin while you can,” he said.

Kiyosaki’s bestselling book urges people to understand their finances, not to rely on others for money, and to accumulate wealth by investing in businesses, real estate, and other assets. The founder of Rich Global and Rich Dad Company has been sounding the alarm on the market for several months.

“Biggest bubble in world history getting bigger,” he tweeted last week. “Fed will raise interest rates causing stock, bond, real estate & gold crash,” he tweeted in mid-May.

Kiyosaki recommended holding crypto and metals, saying he expected them to retain more of their value and be more easily converted into cash than other assets during a downturn.

“Why I like gold, silver, bitcoin? LIQUIDITY,” he tweeted in February. “People rushing in to buy a house at top of real estate market. When real estate crashes cannot get out.”

Notably, the personal-finance guru celebrated the retail investors who executed short squeezes on GameStop, AMC, and other assets earlier this year. “Robin Hood and Reddit traders kicking the butts of institutional investors,” he tweeted in late January. “Keep it up. Love it.”

“I am excited about Reddit going after the manipulated silver market,” he tweeted a few days later, adding, “God bless Reddit traders.”

Kiyosaki is far from the only high-profile commentator to predict a crash. Leading investors such as Jeremy Grantham, Leon Cooperman, Stanley Druckenmiller, and Michael Burry of “The Big Short” fame have all said the boom will end painfully.

Read the original article on Business Insider

‘Rich Dad, Poor Dad’ author Robert Kiyosaki warns an epic market crash is coming – and tells investors to buy bitcoin, gold, and silver

Robert Kiyosaki
“Rich Dad Poor Dad” author Robert Kiyosaki.

  • “Rich Dad, Poor Dad” author Robert Kiyosaki expects a historic crash across financial markets.
  • Kiyosaki advises investors to buy gold, silver, and bitcoin ahead of the downturn.
  • The personal-finance guru cheered on Robinhood and Reddit traders earlier this year.
  • See more stories on Insider’s business page.

Financial markets are barreling towards a brutal downturn, and investors should bank on cryptocurrencies and precious metals to weather the fallout, “Rich Dad Poor Dad” author Robert Kiyosaki tweeted on Monday.

“The biggest crash in world history is coming,” he said, adding that sell-offs create buying opportunities but markets won’t recover for a long time. “Get more gold, silver, and bitcoin while you can.”

Kiyosaki’s best-selling book urges people to understand their finances, not rely on others for money, and accumulate wealth by investing in businesses, real estate, and other assets. The founder of Rich Global and Rich Dad Company has been sounding the alarm on the current market for several months.

“Biggest bubble in world history getting bigger,” he tweeted last week. “Fed will raise interest rates causing stock, bond, real estate & gold to crash,” he tweeted in mid-May.

Kiyosaki recommends holding crypto and metals because he expects them to retain more of their value, and be more easily converted into cash, than other assets during a downturn.

“Why I like gold, silver, bitcoin? LIQUIDITY,” he tweeted in February. “People rushing in to buy a house at top of real estate market. When real estate crashes cannot get out.”

Notably, the personal-finance guru celebrated the retail investors who executed short squeezes on GameStop, AMC, and other assets earlier this year. “Robinhood and Reddit traders kicking the butts of institutional investors,” he tweeted in late January. “Keep it up. Love it.”

“I am excited about Reddit going after the manipulated silver market,” he tweeted a few days later. “God bless Reddit traders.”

Kiyosaki is far from the only high-profile commentator to predict a crash. Leading investors such as Jeremy Grantham, Leon Cooperman, Stanley Druckenmiller, and Michael Burry of “The Big Short” fame have all warned the current boom will end painfully.

Read the original article on Business Insider

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

2021 02 02T071552Z_1_LYNXMPEH110D8_RTROPTP_4_RETAIL TRADING SILVER.JPG
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

2021 02 02T071552Z_1_LYNXMPEH110D8_RTROPTP_4_RETAIL TRADING SILVER.JPG
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.”

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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.”

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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