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

Comments are closed.

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

Agatha has been published.

Aunt Agatha has been published (the money came from an anonymous donor). It was £2500+ If you'd like a copy, donate £10+ and you'll get...

American Hyperconsumerism Is Killing Fewer People!

This report does not say what the Guardian headline writers think it does: Three Americans create enough carbon emissions to kill one person, study finds The...

Contracts Often Lag New Revenue Streams

I've been - vaguely and not with any great interest - anticipating a story like this: Scarlett Johansson sues Walt Disney over Marvel’s Black Widow...

Richard Murphy Rediscovers Monetarism

We have a delightful example of how Richard Murphy simply doesn't understand the basic nuts and bolts of the economics he wants to impose...

Vox Is Missing The Point About Having A Constitution

Not that we should be all that surprised by this from the progressives at Vox. No government- well, no one not controlled by...

Recent comments