Home Economics WallStreetBets, The Silver Squeeze And The Bunker Hunts

WallStreetBets, The Silver Squeeze And The Bunker Hunts

Author

Comments

Fresh from having hammered a hedge fund or two the Redditors at WallStreetBets have decided to try and take on silver:

Silver prices leapt to a eight-year high on Monday, amid social media calls to buy the metal and emulate the frenzy that drove up shares in US video games retailer GameStop.

Shares in a handful of smaller Australian mining firms surged as small-time traders bought en masse.

Argent Minerals jumped 60% while Investigator Resources was up 47%.

Coin-selling websites also reported unprecedented demand and flagged delays in delivering silver.

Silver rose by as much as 11% to $30 an ounce, its highest value since 2013.

This is one of those markets where a pump and dump might well succeed. It’s also one where any long term attempt to manipulate the price just sin’t going to.

The reason being that same reason the Bunker Hunts went bust when they tried it. There’s just too much silver out there for it to be possible to corner the market.

Sure, there’s only so much in the vaults. The supply of new material coming onto the market is what it is, there can be no ramp up in production in weeks or even months. But there’re vast amounts lying around in peoples’ houses. Get the price up enough and they’ll bring it into jewellers to get the scrap value for it.

To all intents and purposes, in reasonably short time scales and compared to market size the silver supply is infinite.

A silver corner just isn’t going to work in even the medium term fun as it might be in the short.

SUPPORT US WITH A SUBSCRIPTION?

4 COMMENTS

  1. I’m not a gambler. When we went to the casino, and my first bet won a dollar, my immediate instinct was to stop. I sat there and read a book while the others spent their money.

    But if you like that sort of thing, and can afford it, I’m sure it’s fun. No doubt seeing if you can screw the hedge funds is even more fun.

  2. Maybe you should actually look at https://www.reddit.com/r/wallstreetbets/ .
    >Don’t listen to them, this is them trying to take focus away from GME
    >The aggressive media campaign to promote silver (worldwide at the same time
    >There is no silver short squeeze happening. NONE. NEVER
    >SEC Intern pls read: False media reports about “Reddit traders” moving into ____ is clear market manipulation
    >Guess who owns tonnes of $SLV options? Fuck Citadel. This shit is co-ordinated
    >Complete lies. Stay away from silver right now

    No one in that place cares about the silver? Seems like bad journalism from all these msm reporters. Need to check their sources.

  3. No idea what you’re on about. Take a look at the place.

    “Don’t listen to them, this is them trying to take focus away from GME”
    “The aggressive media campaign to promote silver (worldwide at the same time”
    “There is no silver short squeeze happening. NONE. NEVER”
    “SEC Intern pls read: False media reports about “Reddit traders” moving into ____ is clear market manipulation”
    “Guess who owns tonnes of $SLV options? Fuck Citadel. This shit is co-ordinated”
    “Complete lies. Stay away from silver right now”

  4. Just to be a pendant: “Bunker” is a middle name, not a part of a compound surname. the brothers are Lamar Hunt, William Herbert Hunt, and Nelson Bunker Hunt. I don’t know why they had different preferences in common use of their middle name.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

expunct

in British English
expunct (ɪkˈspʌŋkt)
VERB (transitive)
1. to delete or erase; blot out; obliterate
2. to wipe out or destroy

Support Us

Recent posts

Getting The Rise Of The Billionaires Wrong

Much ink is spilled these days on the iniquitous rise of the number of billionaires. Some of this is just silly, With 2% inflation...

The Iniquity Of Utilities Asking People To Pay For Their Power

The Guardian gives us one of those lovely, deliberate, misrepresentations of an economic situation. The way this story is written the evil capitalists are...

They Never Will Make The Connection, No

American Prospect is the usual sorta left wing, progressive, type place. Government, especially the Federal government, should be put in charge of much more...

Green New Deal – These People Are Ignorant

The Green New Deal group has decided to favour us with their recommendations for how to make the UK a better place. Given who...

These People Are Mad – Rare Earths And Electronics Recycling

We're being told that we must waste resources in order to save resources. This is, of course, mad but then that's the institutional part...

Recent comments