By clicking OK or continuing to use this site, you agree that we may collect and use your personal data and set
cookies to improve your experience and customise advertising. To see how, and to learn how to control cookies,
please read our Privacy Policy and
Cookie Policy. OK By clicking OK or continuing to use this site, you agree that we may collect and use your personal data and set
cookies to improve your experience and customise advertising. To see how, and to learn how to control cookies,
please read our Privacy Policy and
Cookie Policy.
Search
Share:
Silver futures jumped on Sunday night as speculation arose that the Reddit investors-led short-squeeze rally that pushed up shares in
GameStop Corporation (NYSE: GME) and others is extending into the precious metals market.
What Happened: March silver futures traded 5.34% higher at $28.37 at press time. The futures shot up 8% shortly after the opening of the market at one point.
Spot silver traded 4.61% higher at $28.23 at press-time.
A post on r/WallStreetBets targeted large banks like
JPMorgan Chase & Co (NYSE: JPM) and
Goldman Sachs Group Inc (NYSE: GS) in relation to the “Silver Squeeze.”
“The Silver squeeze will bring down the biggest banks in the world. That s why Robinhood barred trading of $SLV the day after they took a billion dollars in loans from JPM and Goldman Sachs,” the post said.
Share:
Bleakley Advisory Group chief investment officer Peter Boockvar calls the Reddit-fueled rebellion rally a “parabolic bubble” in the CNBC interview.
In a research note, Boockvar warns that mania trades into
GameStop Corp. (NYSE: GME) and
American Airlines Group Inc (NASDAQ: AAL) will ultimately go bust.
“Let’s break down the investment strategy: Find the most shorted stocks, buy calls, write about it, buy the stocks and jam it higher,” said Boockvar.
The prices of these securities far exceed the underlying value of companies.
Boockvar said that markets’ history shows that bubbles start the same way and then pop right “back to where the stock started from.”