Now silver is flying thanks to Reddit.
Silver rose by as much as 11% to $30 an ounce, its highest value since 2013. The moves are the latest example of small-time traders buying stocks and other assets that large Wall Street funds bet against, resulting in large losses for major investors. Some users in the Reddit forums WallStreetBets and WallStreetSilver argued that silver is a heavily manipulated market, and a surge in the silver price could hurt large financial services companies. "If you don't care about the gains, think about the banks like JP Morgan you'd be destroying along the way," said Reddit user RocketBoomGo, in a widely circulated post.
Isn't it terrible the way these investors are manipulating the market. Meanwhile, the Dow is being manipulated 600 points above Friday's Futures close by PROFESSIONAL manipulators (see the difference?) who have jacked the index up 2% in very thin, pre-market trading NOT by getting a bunch of retail investors to buy but but getting a bunch of professional analysts to upgrade the prospects of key Dow components so they will be re-pricied at the open forcing PASSIVE INVESTORS to pay higher prices when the index fund purchases are triggered on the open market.
See? That is the way the markets are SUPPOSED to operate. Giving people an opinion in an open forum and leaving the action of the marketplace up to thousands of individual investors – now that is un-American!
Despite what some retail traders had hoped, some of the biggest profiteers from last week's market action were said to be Wall Street giants such as asset manager BlackRock and the private equity firm Silver Lake. However, other big investors have been hammered by the trading frenzy. Hedge fund Melvin Capital – which bet heavily that shares in Gamestop would fall – lost 53% of its value towards the end of January, according to media reports.
The firm has since received commitments for fresh cash from investors, leaving it with around $8bn in assets, but that is still down from $12.5bn at the beginning of 2021, according to Reuters. The firm had bet that GameStop's stock, which traded at less than $5 five months ago, would fall further, which would…