Silver hits eight-year high as Reddit frenzy turns to commodities

In an job interview, RocketBoomGo gave his 1st name as James and mentioned he is a former Merrill Lynch trader who lives in Florida. The Telegraph has not been able to validate his identification.

The user mentioned that his silver trades were being determined by funds printing by central banking companies, which some have claimed is devaluing paper forex, as well as rising demand from industrial firms that use the meta in merchandise. He extra:  “The current market was primed for a operate on silver.” 

Having said that, several Reddit consumers warned that the main buyers currently being specific by their motion could actually advantage from climbing silver costs. 

For illustration, Citadel – a hedge fund betting towards GameStop that was hammered when shares rose final 7 days – owns large volumes of the metallic and could revenue as a consequence. One Reddit user urged day traders not to pile into the commodity, indicating: “It is essential we do not squeeze it.” 

JPMorgan is considered to hold brief positions in silver but also to have stockpiled masses of the metallic final yr.

It is possible that larger sized buyers have now acted on the turmoil began by retail buyers in the silver current market, which means the way forward is more durable to predict.

European stocks specific by retail buyers as a “short squeeze” have fallen again in the earlier several times, despite the fact that some US stocks have continued to rally. 

Even just after the latest fall, GameStop’s shares were being at $245, valuing the enterprise at $17bn. They began the yr at $17.