Futures contracts for silver surged higher on Sunday night as the Reddit-powered blast in highly shorted stocks has all the earmarks of being pouring out over into the metals market.
Silver futures were up 8% not long after the futures market opened, marking the greatest move in the futures since at least 2013. The agreements last traded up 6.8%.
The sharp move higher builds off gains for silver and silver-related values toward the end of last week. Silver mining stocks Coeur Mining and Pan American Silver rose 16.9% and 14.7%, respectively, on Thursday and Friday. The iShares Silver Trust jumped 6.7% during those two meetings.
The spike in demand for silver appears to be related to retail merchants in the Reddit gathering WallStreetBets, which has helped drive exchanging action vigorously shorted stocks like GameStop and AMC Entertainment in recent weeks.
The forum had different dynamic strings devoted to silver on Sunday night. The expression “#silversqueeze” we also trending on Twitter.
The move in silver was promoted by speculators who are bullish on cryptographic forms of money like Bitcoin, which see the new advanced resources to some degree as substitutes for customary metals.
Cameron Winklevoss, co-founder of cryptocurrency firm Gemini, said on twitter that, “The ramifications of a #silversqueeze cannot be underestimated. If it’s exposed that there are more paper claims on silver than actual silver, not only would payoff be enormous, but gold would be next. #Bitcoin fixes this.”
The sensational spikes in GameStop and other intensely shorted stocks were expected to some extent to a short crush, which is a wonder where financial specialists who have wagered against a stock are compelled to purchase offers to cover their situations as the name moves higher.
Melvin Capital, one of the mutual funds who originally had short situations in GameStop, lost 53% in January.