Reedit investors have now targeted short speculative positions in the precious metal market. As a result, on Monday morning the price of silver rose by 10%. At the same time, it achieved the highest level in 7 years.
The price of silver in the crosshairs of “bream”
It was already mentioned on Thursday. The movement of small investors, which is already referred to as the “bream” revolution, has attacked the silver market. Experts suggest that he wants to “squeeze” the short positions of the big banks. Previously, thousands of Reddit entries encouraged people to buy silver coins.
Currently, the chart shows a price of around $ 30 per troy ounce. Value 30 USD / oz one last time. could be seen in February 2013. This means that people who bought the precious metal seven years ago are almost zero (which, by the way, may now provoke a drop in price). Then, silver prices fell for almost 5 years after the speculative bubble burst in spring 2011.
The Reddit crowd turned their attention to the bigger whale in an attempt to squeeze short positions in the silver market. This is their Moby-Dick equivalent moment – said Kyle Rodda, an IG Markets analyst quoted by Reuters.
The bream revolt
What is the purpose of the “bream revolution”. As he explains bankier.pl, “Reddit investors want to raise their quotations through the increased demand for silver and force the holders of short positions to close them – that is, the forced buy-back of the contracts issued. If this happened, a wave of forced buy orders could push silver prices to previously unseen levels. Same as in recent days with the GameStop shares. “
– Most of the physical silver stocks have been sold out. We are now seeing bonuses – that is, the excess over the spot price you have to pay to acquire physical metal – soar to the sky. Most of the goods on our website are at least 30% over the spot and we can’t get anything cheaper from our wholesalers – said Tyler Wall, head of SD Bullion in an interview with Bloomberg TV.
Will gold be next in line?