7/3/2023 0 Comments Reddit silver squeeze![]() Stephen Rogers, investment strategist at IG Wealth Management, says they should avoid succumbing to FOMO (fear of missing out) and avoid putting too many eggs in one basket. ![]() Silver’s recent run-up might tempt investors to jump in head first. Gallander doesn’t have a favourite pure play silver miner, but he bought Gold Resource Corporation ( GORO) last week, which has silver operations as well as gold and others. “But, understanding this ‘new’ way of working the system should be included in the toolbox,” he said. It is not a time to fall in love with the commodity,” he said.įor investors who fundamentally believe in silver’s prospects, Gallander says it’s probably best to wait. “One has to attempt to stay ahead of the crowd or at least be early. The key is to maintain individual thought and not just follow the crowd,” he told Yahoo Finance Canada. It did reach an eight year high before falling back. “They appeared to have some success with silver already. Gallander says investors should think twice before blindly following the herd in or out of silver. This Reddit/WSB stuff is a whole different animal,” he told Yahoo Finance Canada. ![]() But back in the day it was just them so to speak. “This made me think of when the Hunt Brothers went to corner the silver market back in 1980. They ended up bankrupt after missing a margin payment as silver prices plummeted.īenj Gallander, president of Contra The Heard Investment Letter, says he sees some similarities. After early success, their story ended in tears when the government stepped in to limit buying with borrowed money. Herbert and Nelson Hunt tried to corner the market by pouring billions of dollars inherited from their father’s oil business. A number of WallStreetBets members say large funds, and not retail investors, are trying to pump silver while reminding users about the Hunt Brothers who tried something similar more than 20 years ago. It should be noted that Reddit posters do not have to identify themselves. His favourite silver company is Mag Silver ( MAG.TO). Hodson says a small weighting to silver is okay, not too much. He thinks the retail crowd will eventually get bored with the lack of response with silver and move on. He says short sellers can easily withstand a 10 per cent gain on silver, versus the huge moves in GameStop. ![]() Hodson was previously chairman at global precious metals leader Sprott Asset Management. However, it is far different trying to squeeze a global commodity than it is a small company's stock,” Peter Hodson, founder and head of research at at 5i Research told Yahoo Finance Canada. It has been a hot conspiracy topic for decades. “It has been long known that the physical silver market is in tight supply, and that many banks are short the metal. That also means silver is far more difficult for the Reddit herd to influence. Silver hasn’t faced trading restrictions, has lower short interest, and is a much larger market than those smaller capped stocks, so it’s been more stable during the turmoil. Redditors set their sights on silver over the weekend through a subreddit called The Silver Squeeze, citing shortages of the precious metal, currency debasement, and a way to stick it to Wall Street, accused of suppressing the price. It and a number of other so-called ‘meme stocks’ have cratered in the last few days following trading restrictions on platforms like Robinhood. Silver investors aren’t on the same wild ride of shareholders in Reddit favourites, such as GameStop ( GME), AMC ( AMC), BlackBerry ( BB.TO), but they likely won’t enjoy the same huge returns on their investment either.įollowing a massive short squeeze, GameStop shares rocketed as much as 1,600 per cent over a two week span at the end of January that burned short-selling hedge funds for billions of dollars. The price of silver hit an 8-year high this week.
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