The price of silver rose 11% today (01), reaching R $ 5.16 a gram, the highest price in eight years, but driven by a movement of small investors gathered in the forums WallStreetBets and WallStreetSilver, from the news aggregator Reddit, the which leads to the belief that it is a joint similar to the one that absurdly raised the shares of the video game retailer GameStop last week.
As soon as metal became the “ball of the day” for Reddit speculators, the shares of several small Australian mining firms soared, with small investors buying in droves: Argent Minerals increased 60%, while Investigator Resources reached 47%.
Silver started to rise on Thursday last week, coinciding with the guidance of the two forums, as happened not only with GameStop, but also with AMC and BlackBerry, assets against which the great Wall funds Street bet, and started to have big losses.
According to Reddit forum participants, the choice of silver as a new target for their coordinated actions was due to the fact that it is a market that is highly manipulated by large financial institutions.
This agitation ended up driving a movement to buy physical silver, which put an unprecedented pressure on precious metal retailers. APMEX, one of the industry leaders, issued a statement stating that it will not be possible to accept purchase orders for some products due to strong demand. It was soon followed by SD Bullion, Money Metals and other companies.
The chief strategist at the award-winning FXTM brokerage said he did not believe that the “Reddit army” could influence the price of silver, as he did with GameStop. For him, “the capitalization of the silver market is in the range of $ 1.4 trillion to $ 1.6 trillion, against GameStop’s $ 1.5 billion before it became the target”.