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.