Silver price soars as buccaneering Redditors target short squeeze

A large group of amateur traders have pushed the price of silver and silver mining stocks up after a user in Reddit’s popular WallStreetBets forum called for a ‘short squeeze’ on the precious metal.

Silver futures on the Comex exchange rose by as much as 6.7% to US$27.1 an ounce during trading yesterday, after WallStreetBets – the investor board that sparked the Gamestop Corp trading frenzy this month – turned its attention to the silver market.

Comments on the Reddit forum proclaimed that the ‘the biggest short squeeze in the world’ would take place on the iShares Silver Trust, the biggest exchange-traded instrument backed by silver. The group also cited banks manipulating gold and silver prices.

One of the world’s biggest silver miners – First Majestic Silver – soared as much as 39% in New York on Thursday, while the targeted iShares Silver Trust gained at least 7.2%.

On Twitter, Peter Schiff, CEO of Euro Pacific Capital said: “It looks like the Reddit raiders have turned their attention to silver stocks…Silver stocks are actually cheap, and represent good investment value. The fact that some investors were foolish enough to short these stocks makes their trade even better.”

Meanwhile, Shares in small Australian nickel and cobalt explorer GME Resources jumped as much as 53% on Thursday, seemingly driven by the similarity of its stock ticker code to GameStop.

“I was hoping to be able to say it [the share price movement] was more to do with our world-class nickel projects,” said GME’s bemused managing director Peter Sullivan.