This man made a million with shares of GameStop 2:22
New York (CNN Business) -
GameStop aside, the Reddit craze is spreading to the precious metals market.
Silver futures rose as much as 8.5%, above $ 29, Sunday night, hitting five-month highs.
This follows a 6% rally recorded last week.
Meanwhile, retail sites warned customers over the weekend that they would not be able to meet the growing demand for silver bars and coins.
And "#silversqueeze" is trending on Twitter.
Everything you need to know about how a Reddit group caused GameStop shares to skyrocket
In more recent trading, silver futures were up 6.5%.
Silver, a new target for WallStreetBets
These moves provide another example of the power of a group that has captivated Wall Street and small investors: WallStreetBets.
The Reddit forum sent GameStop, AMC and other very modest stocks soaring last week, shaking up the markets and crushing some hedge funds that had bet against those stocks.
Robinhood, the free 'trading' app, was criticized after restricting the trading of GameStop and other shares.
Last week, the folks at WallStreetBets set their sights on the iShares Silver Trust (SLV) silver and trust ETF, with some suggesting that it could be a way of hurting the big banks that they believe are artificially suppressing prices.
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"SLV will destroy the biggest banks, not just some small hedge funds," wrote a WallStreetBets user.
Another claimed that JPMorgan Chase has been "suppressing (prices of) metals for a long time.
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Several pointed out that, last year, JPMorgan paid a record $ 920 million fine to eliminate charges for engaging in manipulative operations of futures linked to precious metals and Treasuries.
Backing of the Winklevoss twins
The Winklevoss twins, who sued Facebook's Mark Zuckerberg and were the first backers of bitcoin, tweeted their support for WallStreetBets' offensive against silver.
"The #silversqueeze is a protest against machinery," Tyler Winklevoss tweeted.
"If the silver market is proven to be fraudulent, they better know that the gold market will be next," Cameron Winklevoss tweeted.
Major retail sites posted warnings over the weekend that they were facing high demand.
This is Robinhood, the free app that's key to the GameStop craze
"Due to the unprecedented demand for physical silver products, we are unable to accept additional orders for a large number of products until global markets open Sunday evening," wrote APMEX, which calls itself the world's largest online retailer. precious metals world, in a notice at the top of their website.
Unprecedented demand
SD Bullion warned that "due to unprecedented demand for silver" it would also not be able to accept orders until Sunday evening.
Money Metals and other websites posted similar notices.
"It will not be surprising to see that the sharp and abrupt rebound in consumer demand will overwhelm the physical supply of silver coins held by traders in the short term," Ryan Fitzmaurice, Rabobank's commodity strategist, told CNN Business on an email.
However, unlike GameStop and other unwanted stocks that have been targeted by WallStreetBets, silver futures have shown strength recently.
Hedge funds and other institutional investors had been bullish on silver futures and the precious metal was trading near multi-year highs.
"It's a dramatically different market setup," Fitzmaurice said.
"I'm not sure how well this new Reddit trading strategy will do in the futures markets and especially in the notoriously volatile commodity markets."
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