First it was GameStop.
Then, Koss Corporation, AMC Entertainment, Express, Bed Bath & Beyond etc.
Now, it appears Wall Street Bets is behind the move in silver this morning. At the moment, spot silver is up about 10% to $29.60. If this holds, says CNBC, it would be the biggest one-day move in silver since a 13% spike back in March 2009.
With silver exploding, the iShares Silver Trust ETF (SLV) is up 10%, or $2.61 at the moment. Silver mining stock Coeur Mining (CDE) is up about 43%, or $3.85 to $12.90 in pre-market. Hecla Mining (HL) is up 23, or $1.35 to $7.04.
However, upside in silver may not last long.
According to Bloomberg, “Already some prominent members of the WallStreetBets forum have advised against it, with some noting that Ken Griffin’s Citadel Advisors LLC, a favorite bogeyman of the Reddit crowd, is listed as one of the biggest shareholders of the iShares silver trust.”
In addition, if you’re thinking of buying into similar rallies, be very careful.
It’s all been fueled by a Reddit chatroom, short covering, and blind momentum. Speculators are jumping all over this, thinking the rally won’t end. But you know as well as we do, it will end. And it won’t be pretty either. Trust us, as with all bubbles we’ve seen in the past, we think this one will eventually pop.
Only you can determine how much risk you’re willing to take.