![]() Turns out, Citadel Advisors LLC - one of the hedge fund "enemies" WallStreetBets was clobbering just last week - has a big long silver position they'd basically just be putting piles of cash in Citadel's account. The subreddit is divided on whether to even keep buying silver. You just wouldn't get the wild buying binge that defined the GameStop "Super Squeeze." With SLV, short-sellers looking to cover their positions could work with authorized participants to create more shares of SL V, rather than bidding up existing shares. GameStop had a particularly small float for its market cap, around 69 million shares. Obviously, companies can't and won't do that. The mechanics of it are complicated, but it's really easy for SLV management to just issue new shares if they can buy silver, they can - and will - issue new shares until the end of time. As T he Washington Post reports, SLV management is allowed around 1,100 ounces' worth of wiggle room, but that's it - that's how much silver they can leave un-allocated in case of unforeseen events or some delivery problem. It's possible to exchange a share of SLV for the equivalent amount of silver, and vice versa. There could be a misunderstanding, genuine or not, of how SLV actually works.Īn ETF like SLV is much, much harder to short than a publicly traded company like GameStop, and it's much harder to force the kind of "Super Squeezes" that can be really profitable. Here's the big problem with the Redditors' strategy. That's eased a little, but demand is still outpacing ready supply - it could potentially be a rough weekend if you had plans to go and put your hands on real silver. Some coin and bullion sellers had to temporarily suspend operations because they just couldn't get enough of the stuff. Now, b ecause SLV is backed up by actual, physical bullion in New York and London (when you buy shares of SLV, management has to up and go and buy bars of silver on the market), there was a huge demand spike, and actual shortages popped up here and there. SECRET'S OUT: The "Super Squeeze" means the average American could fight back against Wall Street. Whatever the Reddit post really said, silver went ballistic, hitting an eight -year high, which in turn led to SLV's best-ever daily inflows. 27, "comments began appearing on saying that banks had been keeping prices artificially low and urging users to buy into SLV." It's actually the biggest exchange-traded product that tracks it.Īccording t o T he Washington Post, it's not completely clear, but on Jan. Intraday, GME is more than 87% off its recent highs, and AMC is off nearly 64% as I write this.Īt the moment, the Redditors are targeting the iShares Silver Trust (NYSEArca: SLV) which, as the name says, tracks the price of silver. (NYSE: AMC)? Those ships have sailed - the easy money is over and done with there. (NASDAQ: GME) and AMC Entertainment Holdings Inc. These kinds of trades can be fantastic if you've got the right stock, but there's a big problem with the Redditors' target here. ![]() I f you're into or own precious metals, you may have already heard. So it's a pretty safe bet we'll see something like this happen again. Retail investors have tried it, seen that it worked insanely well, and now know they can come together and. I think, in a lot of ways, GameStop was really just the proof of concept. Well, I don't think we've seen the last of it. It's the b illion-dollar question right now: After this month's historic short "S uper Squeeze, " everyone wants to know. Save my name, email, and website in this browser for the next time I comment. Sign me up for the Money Morning newsletter Your email address will not be published. Or to contact Money Morning Customer Service, click here. Comment on This Story Click here to cancel reply.
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