Will Short Squeeze Affect Silver?

Who are Wallstreetbets, and how come a group of rogue Redditors is on everyone’s lips? What is short-selling and will it lead to a reexamining of the silver market value?

What is a Short Squeeze?

The origin of the Squeeze spectacle has risen as a consequence of the short-selling practice — a perfectly legal yet morally dubious investment model based on speculating a decrease in value of a specific business. Shorting investors borrow a company’s stock, immediately selling it, and — as the said institution marks down its price — return them to the lender, intending to pocket the difference. A fund model, resembling the self-serving attitude of a tiger on the prowl, predating vulnerable businesses, in the hope of benefiting from the market adversities.

A Silver-Tongued Devil

As short-selling became the in-vogue term of the week, silver was suddenly thrust into the WallStreetBets group. The precious metals market responded immediately. A leveraged army of Redditors, interested in the highly undervalued SLV market, quickly jumped on the opportunity. Within one evening, silver reached its eight-year high and touched the $30 barrier for a brief moment, before it started correcting itself.

But who are WallStreetBets?

Who are they and what exactly fuels their agenda? They’re a Reddit based collaborative of amateur investors, conceived by Jaime Rogozinski in 2012. A group initially meant to counterbalance the conventional Wall Street forums by offering non-elitist access to financial information, which by the end of January grew to over 3.5 million strong. A group, distinctive in their sympathetic approach to investing and providing a commune spirit for the individual traders, but far too overgrown to be consciously administered. Simultaneously, moldable enough to be prone to unregulated insidious engineering and subsequently — provoked into relentless crusades, just like the unstoppable GME Squeeze we’ve just witnessed.

WallStreetBets — The Movie

Even if the speculative rush is short-lived, it certainly shows the power of plenty that can be built when in the hands of organized, passionate amateurs. It shows that billionaire-owned hedge fund schemes can be perturbed when individuals recognize the scope of their potential.

What does the future hold?

It most likely belongs to the individual investor, whose eyes are finally open not only to the stock market manipulation but also to the amplitude of its own influence. As of today, the WallStreetBets group ballooned from 3.5 to 8.4 million within a week, with the awareness of small traders constantly growing. The sudden surge of interest sparks another question — where will their focus move next? Whether it will be silver, or… could it be gold this time?



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Kinesis Money

Kinesis re-introduces physical gold and silver bullion as currencies that integrate with today’s online banking and payment solutions.