Is Silver the next Gamestop? How retail investors challenge the giants of Wall Street again
Following an unprecedented short-selling squeeze involving stocks like GameStop and AMC in early 2021, a group of retail investors from the Reddit forum r/WallStreetBets (and its subsidiary called r/WallStreetSilver) aimed at the silver market, trying to challenge Wall. The street giants with the so-called “silver squeeze”.
The silver squeeze movement was sparked on the r/WallStreetBets forum, where users urged each other to buy silver and silver-related assets to push prices up and create a squeeze on financial institutions. are holding short positions in this metal.
According to a Article from J. Rotbart & Co.redditors think the silver market is particularly susceptible to a squeeze because they believe that trade COMEX traders are holding large, opaque short positions.
A short squeeze occurs when investors who have short sold an asset are forced to buy back the asset to cover losses when the price rises. This buying pressure pushes the price even higher, causing additional losses for short sellers and significant gains for the initial investors in the asset.
The short squeeze in silver is fueled by the belief that silver is undervalued and that its price has been artificially suppressed by major financial institutions. By banding together to buy silver, small investors aim to expose market manipulation and level the playing field with Wall Street.
The short silver squeeze captured only a fraction of the wave of excitement that flooded the retail investment sector from the Gamestop squeeze. So far, this theory has not held up as the price of silver has only fallen since it started exploding on Reddit. However, that doesn’t necessarily mean it’s completely baseless or that silver isn’t undervalued.
Silver has been one of the most popular safe-haven and valuable assets in nearly all of its written history. Along with gold, it is even more popular in times of economic uncertainty. With widespread fear of withdrawals, rising interest rates, growing conflict in Ukraine, and many smaller-scale crises you can count, it’s hard to call the economic outlook for 2023 any bad. anything but uncertainty.
Investors are massively turning to gold and silver to protect their portfolios as uncertainty increases in the economy. Payment procedures Benzinga’s Precious Metals Center to master the field and discover the best precious metals trading platforms.
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