Reddit Traders’ Next Target: Silver
The Next Retail Trading Trends
Retail traders have had a powerful impact on markets in recent weeks. The world has watched as shares of heavily shorted stocks like GameStop (GME) and AMC Entertainment (AMC) have soared while traders have encouraged one another to pile into these stocks through discussions on Reddit and other social media platforms.
Now these traders are making other investments which are causing new market trends. For example, the price of silver surged Monday as the metal gained attention from new investors. Special-purpose acquisition companies, known as SPACs, are also getting a boost as a result of new interest from retail investors.
The Silver Squeeze
The price of silver surged 11% hitting an eight-year high yesterday. The price of the metal fell slightly after this spike, but on the whole, silver and silver-related equities experienced a significant rally. iShares Silver Trust (SLV), an exchange-traded fund which follows the price of silver, surged yesterday, as did shares of silver mining companies like Coeur Mining (CDE) and Pan American Silver Corp (PAAS).
On the Reddit forum WallStreetBets, there were multiple threads discussing silver over the weekend and the hashtag “#silversqueeze” was trending on Twitter (TWTR). Analysts have pointed out that the silver market is larger and more liquid than the market for shares of GameStop or AMC, so retail traders may not be able to impact it as dramatically. But at the moment these traders are driving changes in the silver market.
As Mohamed El-Erian, Chief Economic Advisor at Allianz said, “It’s a very different target, but the fact that you can move silver, such a large market, is an indication to everybody that they have to take these new technicals seriously.”
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS21020201
All your finances.
All in one app.
App Store rating
