Reddit’s “A Short Selling Forces Punisher”
9.3% per ounce for March on purchase
“I can’t expect a rise like a game stop”
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The price of silver has risen sharply as individual US investors, who joined in the bulletin board site Reddit and fought a bout with short selling forces, are moving to silver, a representative alternative investment asset and an important industrial raw material. Instead, GameStop, which became a battleground for ants vs. hedge funds last week, plunged on the first trading day of this week.
On the 1st (local time) on the New York Merchandise Exchange, silver for March deliveries ended at $29.418, up 9.3% ($2.50) per ounce from the previous trading day. This is the highest since February 2013. Major silver-listed index funds (ETFs) also surged 7.5% a day.
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The reason why the price of silver futures and ETFs has risen sharply is because an article about buying silver intensively was posted on Reddit’s discussion room’Wall Street Betz’, an online community that led the GameStop situation. Earlier, it was argued to damage large financial institutions that’suppressed’ the silver market by buying silver-related ETFs, just as the ants showed their time to the hedge fund, which collectively bought GameStop stocks and sold them short.
It is interpreted that the ant investors who agreed with this flocked to the silver market and formed a huge buying trend, leading to a price surge. The price of gold, the same safe asset and major commodity, ended at $1,863.90, up 0.7% per ounce ($13.60) for deliveries in April.
The ants moved to silver because they believe the US government and banks are pushing the price of gold and silver, which are alternative assets, to cover up inflation. The hashtag’Silver Quiz’ is still continuing on Twitter to condemn the forces that push silver prices through short selling.
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However, even within Reddit, it is pointed out that Eun is not suitable to wage a war with financial institutions because it is difficult to cause’short squeeze’ like small-caps such as Gamestop. It is also said that short-selling investors have difficulty in creating short squeezes in which they have to buy stocks or products borrowed and bought at a loss in order to repay them in real terms, and hedge funds are also in a long position, so there is no meaning to wage war.
Unlike silver prices, GameStop shares closed at $225.00, down 30.8% from Friday last week. Thanks to the intensive purchase of ants gathered around the discussion room, it soared 1,625% in January, and then showed a stagnation on the first day of February. In the US stock market, an analysis was found that it seems that securities trading apps such as Robin Hood, which are favored by US ants, still considerably limited the number of users to purchase gamestops, affecting the stock price.
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Robin Hood reduced its trading restrictions from 50 to 8, but GameStop shares are still limited to 4 shares per person. Investors who already have more than 4 shares cannot buy more. Robin Hood explained that it was forced to restrict the transaction due to the sudden increase in the amount of margin demand from the authorities due to the sudden fluctuation of the GameStop stock price. Some suspect that Robin Hood has tied the hands and feet of ants because of the pressure of huge capital, such as Citadel Capital.
Brad Teneb, co-founder Robinhood, strongly denied this. According to CNBC, Teneb was asked by Tesla CEO Elon Musk regarding the GameStop Short Selling War in the audio chat’Club House’ the day before last month. Teneb told Musk, “there are rumors that big players such as Citadel Capital pressed Robin Hood to limit GameStop stock trading, but it’s false.”
Meanwhile, Musk told Clubhouse, “I’m a bitcoin supporter,” and “I should have bought bitcoin eight years ago. (From now on) Bitcoin will soon be widely accepted even among traditional financiers.” /New York = correspondent Kim Young-pil, reporter Maeng Jun-ho [email protected]
/ Reporter Maeng Joon-ho [email protected]
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