Some Redditors call #silversqueeze campaign a trap, claim hedge funds behind surge
Published
NEW YORK (AP) - The erratic trading in shares of underdog companies like GameStop that turned markets combustible last week appears to have migrated to commodities, sending silver prices surging to an eight-year high.
Silver futures jumped almost 12% on Monday to over $30 per ounce with #silversqueeze trending on Twitter. That exuberance spread to companies that mine precious metals, especially silver. Shares of Pan American Silver surged more than 9%, First Majestic Silver rose 18.7%, Hecla Mining spiked 21.8%, and Coeur Mining soared 17.6%.
Silver prices that appear to have gone haywire appear, at least in part, to be an outgrowth of the WallStreetBets forum on Reddit.
The Associated Press
FILE - In this June 26, 2020, file photo taken from video, provided by the Yes on Measure 110 Campaign, volunteers deliver boxes containing signed petitions in favor of the measure to the Oregon Secretary of State s office in Salem, Ore. The measure said the U.S., possession of small amounts of heroin, cocaine, LSD and other hard drugs would be decriminalized in Oregon. Police in Oregon can no longer arrest someone for possession of small amounts of heroin, methamphetamine and other hard drugs as the ballot measure that decriminalized them took effect on Monday, Feb. 1, 2021. (Yes on Measure 110 Campaign via AP, File)
Author Bio
Reuben Gregg Brewer believes dividends are a window into a company s soul. He tries to invest in good souls.
What happened
Shares of precious metals miner
First Majestic Silver (NYSE:AG) lost a quarter of their value at the open of trading on Feb. 2. Not too far behind was
Endeavour Silver (NYSE:EXK), with a 20% drop.
Hecla Mining s (NYSE:HL) loss was a swift 19%. And
Gatos Silver (NYSE: GATO) each dropped 18%.
This list was cherry-picked; there were a lot more silver mining names in the red. However, the stocks here suffered some of the steepest losses in the first hour or so of trading today. They truly highlight the risks when emotion overtakes facts on Wall Street, as has happened far too often lately.
Associated Press
Analysts are citing recent volatility for silver futures jumping more than 9% Monday to $29.42 per ounce. Previous Next
Tuesday, February 02, 2021 1:00 am
Silver prices surge; may be tied to GameStop
Associated Press
NEW YORK – The erratic trading in shares of underdog companies like GameStop that turned markets combustible last week appears to have migrated to commodities, sending silver prices surging to an eight-year high.
Silver futures jumped more than 9% on Monday, to $29.42 per ounce, with #silversqueeze trending on Twitter.
That exuberance spread to companies that mine precious metals, especially silver. Shares of Pan American Silver surged more than 9%, First Majestic Silver rose 18.7%, Hecla Mining spiked 21.8% and Coeur Mining soared 17.6%.
The online army of Reddit traders have over the past week rallied to defend out-of-favor companies such as struggling videogame retailer GameStop and theater chain AMC Entertainment, defeating hedge funds that had bet the shares would fall by selling them short, in a stunning reversal of financial power transfixing Wall Street.
The move into silver gained traction Thursday after posts on the “Wall Street Bets” Reddit forum urged investors to pile into physical silver, encouraging them to push the price of the metal up to $1,000.
“Silver Bullion Market is one of the most manipulated on earth,” Reddit user RocketBoomGo wrote. “Any short squeeze in silver paper shorts would be EPIC.”