June 16, 2024

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Silver hits eight-year high as Reddit frenzy turns to commodities

In an interview, RocketBoomGo gave his initially title as James and said he is a former Merrill Lynch trader who lives in Florida. The Telegraph has not been ready to confirm his id.

The person said that his silver trades were determined by cash printing by central banks, which some have claimed is devaluing paper forex, as very well as rising demand from industrial companies that use the meta in merchandise. He included:  “The industry was primed for a operate on silver.” 

Having said that, many Reddit users warned that the key traders staying targeted by their movement could actually reward from mounting silver prices. 

For example, Citadel – a hedge fund betting in opposition to GameStop that was hammered when shares rose previous week – owns significant volumes of the metal and could financial gain as a final result. 1 Reddit person urged working day traders not to pile into the commodity, stating: “It is critical we do not squeeze it.” 

JPMorgan is believed to hold shorter positions in silver but also to have stockpiled masses of the metal previous yr.

It is very likely that greater traders have now acted on the turmoil started out by retail traders in the silver industry, meaning the way ahead is more challenging to forecast.

European stocks targeted by retail traders as a “short squeeze” have fallen again in the past few times, while some US stocks have continued to rally. 

Even immediately after the most up-to-date tumble, GameStop’s shares were at $245, valuing the corporation at $17bn. They started out the yr at $17.