In the U.S. stock retail investors Reddit sub-forum WallStreetBets (WSB) retail investors called for “the biggest silver shorting in history”, silver prices climbed strongly in the European stock market on Monday, prices hit a new 8-year high, the U.S. stocks fell during the day.
European stock trading session, spot silver briefly rose above $30 ounces, the maximum intraday gain of more than 11%, COMEX silver futures had also broken through the $30 / ounce barrier, the maximum intraday gain of 13%, both hit a new intraday high in 2013. But U.S. stocks in early trading, spot silver short dive, down $2 from the daily high, the intra-day gains narrowed to about 4%, the intra-day gains in New York futures silver had narrowed to about 5.5%.
U.S. mining stocks continued to surge in the pre-market, including First Majestic rose more than 34%, Endeavour Silver rose more than 30%, Avino Siliver rose 19%. SLV, the world’s largest ET iShare silver ETF, which tracks silver, rose more than 10%.
After the opening bell, First Majestic and Endeavour Silver rose more than 30% at the beginning of the session, narrowing to less than 20% in early trading, Avino Siliver rose nearly 130% at the beginning of the session, once less than 40% in early trading. iShare Silver ETF SLV rose nearly 12% at the beginning of the session, having risen less than 5% in early trading.
Silver’s strong performance has pushed the Gold/silver ratio to its lowest level since 2014, now at 62.3.
Silver prices opened Monday’s Asian trading session with a surge of more than 7%. Argent Minerals closed up nearly 60 percent, Investigator Resources rose more than 40 percent and Boab Metal rose nearly 20 percent.
The Thailand Futures Exchange announced the suspension of online silver futures trading due to the price spike.
The frenzy in the silver market has left silver bars and coins in short supply on retail sites.
According to Bloomberg, many retailers, including Money Metals, SD Bullion, JM Bullion and Apmex, said they were unable to process orders before the Asian markets opened and have suspended sales of silver products in response to the current frenzied demand for silver.
In an interview with Bloomberg, Tyler Wall, president and CEO of SD Bullion, revealed that most of the physical silver spot inventory on the site is already sold out. Physical silver products are available at premiums of up to 30% and cannot currently be sourced from wholesalers at lower prices.
As Wall Street News previously mentioned, while the market is highly focused on GameStop’s short-selling, WallStreetBets forum retail investors are starting to set their sights on a new short-selling target: silver.
In a post, a retail investor with the username “jjalj30” called on retail investors to focus their next round of short selling on silver.
According to “jjalj30”, the silver market is currently one of the most manipulated markets in the world. Dozens of banks are manipulating gold and silver prices to hide actual Inflation. Both in the industrial and monetary spheres, the current global central bank watering operations are supposed to push up the price of silver. The inflation-adjusted price of silver should be $1,000 per ounce, not the current $25 per ounce.
“jjalj30” believes that retail investors can push the price of silver higher by continuing to buy silver ETFs (SLVs) to force it short. Even if retail investors don’t care about returns, it’s exciting to think that a major bank like JPMorgan Chase (which previously paid a huge fine for silver price action) could go bankrupt from short-selling.
Similar sentiments were expressed by a retail investor with the username “TheHappyHawaiian” who called on WallStreetBets retail investors to “launch the biggest silver short in history.
“TheHappyHawaiian” said that the market manipulation of silver prices through naked short selling is mainly represented by JPMorgan Chase, a few big Wall Street banks. The average ratio of silver traded on the books to physical silver in the silver futures market is currently 250:1, which means that most trades are settled in cash rather than by physical delivery.
As long as retail investors can force more futures contracts to be physically delivered, they can squeeze the silver shorts.
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