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Silversqueeze: Social media crowd drives silver price to eight

2021-02-01T12:08:43.654Z


For days, private investors have been making price turmoil on the stock market with agreements on the Internet. Now the social media crowd has found a new investment target: the silver market.


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Whale, there he blows:

Social media investors have identified the silver price as their "Moby Dick"

Photo: Horst Ossinger / picture alliance / dpa

After the soaring of the Gamestop share and other papers on the stock market, small investors are now switching to silver with their concerted purchases.

There are corresponding agreements on social media, the hashtag #silversqueeze, for example, was one of the most used on Twitter at the weekend.

The result can be seen on Monday on the silver market.

The price of the precious metal rose at the beginning of the week by up to 11 percent to more than $ 30 an ounce (31.1 grams).

Since last Wednesday, the price has risen by almost 20 percent.

It has now reached its highest level since February 2013.

For comparison: Gold was trading just under one percent up on Monday at $ 1,864.

Similar to the US video game retailer Gamestop, the current rally was triggered by contributions in an investor forum on the online platform Reddit.

There users called for shares to be bought from silver mine operators and listed silver funds.

Their precious metal stocks rose by 4 percent on Friday to a record high of 28,382 tons.

This is the biggest increase in almost ten years.

In addition, investors shifted their purchases to the precious metal itself.

Above all, Asian investors grabbed silver, said Brian Lan, managing director of the precious metals trader GoldSilver Central.

In the case of Gamestop and other stocks, retail investors had made concerted purchases to force hedge funds to cancel their bets on the fall in prices of certain securities, driving them to the brink of ruin.

The rebellious investors were supported by prominent sources: Tesla boss

Elon Musk

(49) stepped in and fueled the topic with messages on his Twitter account.

For a few days now, there have been unusual price movements on the financial markets.

Driven by hobby speculators on the Reddit online platform, who organized themselves in the "WallStreetBets" forum, individual courses were sometimes extremely skyrocketed.

The price rises get an additional boost if professional investors who have bet on price losses on the stocks in question are caught on the wrong foot.

If these investors have to close their short positions through emergency purchases, a so-called "short squeeze" is created, which can cause prices to skyrocket.

That is apparently also the goal that private investors are currently pursuing in the silver market.

"The Reddit investors have now turned to a bigger fish, they want to trigger something like a short squeeze on the silver market," the Reuters news agency quoted an analyst at the brokerage firm IG Markets in Melbourne.

"This is their big Moby Dick moment."

cr / Reuters, DPA

Source: spiegel

All news articles on 2021-02-01

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