Silver ($SLV) price touched $30 today rising over 11% for the day amid short squeeze calls by wallstreetbets Reddit group after doing the same to the GameStop (GME) stock. The price of silver has risen by over 10% since the call as the group targets a price of $500 to bring down JP Morgan’s Silver shorts. Just like Melvin Capital, even JP Morgan has bought a significant amount of Silver shorts, and not just JP Morgan a significant portion of hedge funds have also bought short positions against Silver, making it one of the most shorted markets on wall street.
FINANCE: Silver prices now up over 10% amid new attention from Reddit investors
— The Spectator Index (@spectatorindex) February 1, 2021
The rise of GME against all odds propelled by the retail market along with a Reddit group has led to frenzy for such shorted markets and as a result currently physical silver has gone out of stock from many vendors list.
Could Reddit Investors Short JP Morgan Just Like Melvin Group?
The silver market is so heavily shorted at the moment that for every $1 rise in its price nearly $200 million worth of shorts get liquidated. The sentiment around shorting wall street saw GME stocks rise from under $10 to over $450 in a couple of months.
Max Keiser, a big-time bitcoin advocate is currently heading the crypto forefront to help retailers short the Wall Street. He even led a similar campaign as early as 2010 when he called for short squeezing silver to bring it down.
Keiser who hosts a popular bitcoin podcast called Orange Pill was seen as obnoxious for making bitcoin price predictions of about $100,000 from the early days, however as Bitcoin rallied over $40,000 this January people started giving weight to his predictions. He recently reminded people about the same and said,
2010: People didn’t believe Max & Stacy that a global short-squeeze could drive the price of Silver to $500 “IF YOU WANT IT”
#ShortSilver will test the idea now
2011: People didn’t believe Max & Stacy that #Bitcoin (then $1) would replace fiat and trade above $100,000