What’s Happening with the Reddit Silver Squeeze? — The Price is Moving

The price of silver has now drawn the attention of what has possibly becomes one of the world’s most influential forces.

That’s right, the Reddit army of WallStreetBets with their goal of a ‘Silver Squeeze’.

I’m not going to explain who, or what they are here because if you haven’t heard of them by now, your head has likely been stuck firmly in the sand — but you can read about them here.

Silver Squeeze - Silver Price Chart in USD

Source: Tradingview

Currently, the price of silver has risen 5.78% to US$29.47 per ounce, signalling moves we haven’t seen since August last year.

Banks and hedge funds face continued pressure

The Reddit army has captured new territory in the past few days, proclaiming their entry into the commodities market.

At about 8:30am New York time on Thursday, traders hell-bent on teaching banks and hedge funds a lesson began flooding iShares Silver Trust.

But the movement has since spread across all things silver.

Silvers miners have watched their stocks rally, futures are up and a record 3.1 million iShares Silver Trust options contracts have been traded.

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ASX-listed companies Silver Mines Ltd [ASX:SVL] and Investigator Resources Ltd [ASX:IVR] are just two beneficiaries of WallStreetBets spill over into silver.

Currently, the SVL share price is up 35% to 33 cents per share, coming off a 52-week high set earlier.

And the IVR share price has tacked on 28% to trade at 10 cents per share, also hitting a fresh 52-week high.

What does this all mean?

Just what the long-term consequences will be is not exactly clear yet. But aside from upsetting a few banks and snooty fund managers, this Reddit movement has ruffled plenty of feathers within the mainstream media.

Here’s a snippet from local old guard the Australian Financial Review:

Market manipulation has been the rallying cry of conspiracy theorists in precious metals circles for decades, if not centuries. With their constant railing against banks and big government colluding to mask inflation…

Clearly no one has revealed the existence of the world’s central banks to this author.

Malicious or not, to outright deny the existence of market manipulation is downright foolish.

What does the Silver Squeeze mean for Silver and Silver Stocks?

For now, enjoy the ride.

The mantra of this crusading army is not one of profit, but one of equality.

That’s why we’re seeing such a gross pushback from old media and legacy financial institutions.

The phrase that is currently being shouted around the halls of WallStreetBets is ‘hold the line!’.

They say they’re not out for profit, but to punish corporate greed — and keeping their long positions open.

Meaning we could see the price of silver continue to climb over the coming days and weeks. In fact, now could possibly be the best time to add the precious metal to your investment portfolio. Click here for the full details.


Lachlann Tierney
For The Rum Rebellion

Lachlann Tierney is a writer for The Rum Rebellion and has been investing for nearly a decade. With a Masters of Science from the London School of Economics, he brings a sound understanding of global markets to his writing. Lachlann is interested in emerging technologies, energy solutions and helping people invest their money wisely. 

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