The retail investors’ attacks have completely captured the financial market participants’ minds. A blow is expected and feared decisively from everywhere. Like it was yesterday, when another one followed. It’s all about silver prices’ sharp increase reaching 13% during that day. It was the most significant one-day gain since March 2009. Sure thing, 13% is a far off from 50% or 100% that Gamestop shares have demonstrated. Neither silver is comparable in scale to the half-dead company’s shares. By the way, yesterday the Gamestop shares started to fade, losing approximately 30%. These shortcomings are likely to befall silver in the nearest days—but on a much smaller scale.
But possibly there’s been no attack at all. There was some social media and on forums hype threatening to launch an attack. This hype acted as a kind of self-fulfilling prophecy. In other words, the silver market participants have observed sufficient power of Reddit traders and decided to buy without waiting for the silver price to grow. As a result, the buying interest sharply sprang, as well as the prices did. If it’s true, silver sales cannot be avoided as soon as everyone realizes the deceit. So, selling the asset looks like a pretty promising idea.
In the US, a number of Republicans have come up with an initiative to reduce the size of the Biden plan. Apparently, the negotiating process has started. Let’s see the way it ends.The retail sales data from Germany released yesterday was a disappointment. But it was pretty expected, given that the data is as of December (the lockdown peak). Last week, the German economy narrowly escaped the first step towards recession, but the German economy contracted by 5% for 2020. The euro was under pressure in the foreign exchange market. It was mainly due to the dollar strengthening, rather than due to sales across the entire spectrum.
Just a fake presented by all the affiliated news stations. Anyone who has Reddit can see no one actually bought silver or talked about buying silver. Actually, the only ones buying silver were the hedge funds including Citadel:
Citadel Advisors LLC owned about 6 million shares of the iShares Silver Trust as of Sept. 30, equivalent to a 0.93% stake, data compiled by Bloomberg show.
While these holdings may well be related to its role as one of the world’s largest market makers -- the firm also held shares in at least 17 other silver companies and ETFs -- the debate they have caused highlights that traders in the WallStreetBets forum are far from a homogeneous group.
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@verdany7, thank you for your information. quite reasonable