The weekend saw a buying binge that overwhelmed online silver vendors around the world. I commented on this briefly last week I said I didn’t think the Reddit crowd had the power really move the price of silver. First Majestic Silver (TSX: FR, NYSE: AG) was an early focus, and fair enough as it attracts as much or more shorting as any silver stock out there.īut then they decided to go after the spot price.

Moving the price of silver was actually a second thought. In fact, the Reddit crowd turned to silver because its immense shorting market offers potential to create, as the thread declares, “the biggest short squeeze in the world $SLV Silver $25 to $1000.” It made sense in that silver is a reasonably small market and one rife with shorters. It started on Thursday and Friday last week. What’s going to happen? Silver price fireworks are a real possibility – but are not guaranteed.īackground: the Reddit crowd that pushed GameStop through the roof to (1) show hedge funds with publicly proclaimed shorts that retail has the power to stop their elitist and money-grubbing attacks on certain stocks or (2) make a pile of cash by getting oodles of retail to just pile into one stock or (3) some combination of the two have now shifted their focus to silver. There is so much to say about everything going on with Reddit and Robinhood and volatility and market tops and and and…but I will save most of that for Wednesday and keep my comments to silver.

Reddit the big short