The Reddit group Wallstreetbets is now eyeing to short squeeze silver market, one of the heavily shorted markets with the majority of the short position bought by JP Morgan. The price of silver has already risen by 6% for the day and it seems the Redditors have started buying the Silver similar to GME stocks.
With the current price of the silver spot price at $26, the price would need to go up to $500 to pull a Melvin on JP Morgan.
With Nasdaq and Robinhood halting Gamestop GME stock trading amid retailers and Redditors raging a war against Wall street short buyers liquidating billions of short positions, the retailers have turned their eye on the silver market now. Melvin group short positions mounted over $13 billion post retailers heavily bought the GME stocks pushed by the memes and Reddit discussions.
Would Silver [$SLV] do a GME?
Many are calling this the beginning of a new trading era led by retailers in a space primarily dominated by hedge funds and institutional investors. Most of the hedge funds use the same tactic of manipulating the retail market via television to soar their stock prices, but when retailers decided to do the same, they have resorted to bullying tactics by halting and suspending trades.
GME stock price was trading as low as $3.36 in April last year when the company was on the verge of closure, the hedge funds had bet heavily against the stock to the tank that would have made them billions. However, wallstreetbets decided to do the same and called everyone to buy as many GME stocks as possible soaring its prices to above $400.
Silver would need to rise by nearly $480 to liquidate JP Morgan’s billions of short positions. The retailers have proved their worth by shorting wall street forcing them on the back foot, it can extend that sentiment by pushing the silver price now. The silver market is so heavily shorted that a $1 price rise in Silver’s price liquidates nearly $200 million worth of short positions.