After GameStop, WallStreetBets makes silver jump

GameStop, AMC, American Airlines, BlackBerry… and now the money.

The madness of the members of the WallStreetBets forum - almost 8 million Internet users on Monday - continues to shake up the financial markets, after putting the brakes on short selling last week.

Silver reached its highest level in 8 years on Monday, topping $ 30 per ounce (31.10 grams).

Since Thursday, silver has gained 16.05%.

By way of comparison, the price of gold remains relatively stable (+ 0.88% at 1,860.06 dollars per ounce).

This strong push comes after the publication, on the Reddit forum of WallStreetBets, of several messages calling for the purchase of money in order to reproduce the same blow as with GameStop and to put investment funds in difficulty.

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“Individuals are trying to take advantage of a feature of the commodities market: its physical existence,” says Eugen Weinberg, analyst at Commerzbank.

And the specialist to detail: "By buying index funds (ETF) based on money", since their issuers must buy bars or coins, "we can create a shortage of supply."

“In the medium term, any prolonged rise in the price of silver will destroy physical demand” in sectors such as jewelry or industry, where metal is used as a conductor, she continues.

The WallStreetBets Contradiction

"It's going to be interesting to see how far individuals can push the price of silver," commented Hussein Sayed, analyst at FXTM, who notes, however, that "the size of the silver market is around 1.5 trillion. of dollars, more difficult to move ”than GameStop.

Monday, despite this rise in prices, WallStreetBets now restrained four irons on money: betting on money would in fact help to enrich the banks and investment funds, which they wanted to ruin.

By thwarting the plans of investors who bet down the GameStop, Internet users of WallStreetBets had succeeded in raising the price of the company, parent company of Micromania in France, to levels never reached (+ 2300% in one month) while the Covid-19 put her in difficulty.

This Monday, the action was down, to nearly $ 250 ... against less than $ 20 at the end of 2020.