Silver prices surged to a five-month high and small silver miners listed in Australia surged after Reddit users attempted to emulate the trading frenzy that has driven GameStop shares up 1,500% in two weeks.
Users from r/Wallstreetbets have rallied to raise silver prices which they alleged was out of the market’s favor like they did with GameStop, Nokia, AMC, and Blackberry stocks.
“Mall retailer? Small potatoes. Global silver market? The greatest short squeeze in history,” said one r/Wallstreetbets user.
Similar calls rang out on Twitter and caused #silversqueeze to trend and enticed other novice traders to try their hand as well.
Silver was now valued as high as $28.99 an ounce after briefly going above $30 an ounce in early trading.
Argent Minerals, Boab Metals, and Investigator Resources shares have also risen by as much as 15% over the weekend.
According to the London Bullion Market Association, their 1.1 billion troy ounces of silver stored at their vaults are now valued at $32 billion.
Money Metals and APMEX Inc., and other silver trading platforms reported they were unable to process new orders until global markets opened due to the overwhelming demand.
A Twitter user, @michaeljburry however warned that a corner in the silver market has been tried before in 1980 but was unsuccessful.
Ipek Ozkardeskaya, a senior analyst at Swissquote Bank also cautioned that the surge might be short-lived due to the gold-silver ratio.
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