Normally, the nearest is the lowest, and the next is higher, the next one after that is higher, etc. The bases for the other contracts rise, but note that they reverse order. It demonstrates that the buying was focused on futures. During this gain of $1.75 or 7%, the March basis shot up from around 0.6% to 2.5%. Here is a graph of the silver price and basis (abundance of the metal to the market).Īs the chart shows, the price rapidly shot up from around 13:30 to 14:30 (London time) from around $25.25 to a spike around $27. The price subsided but then perked back up later in the day. The price moved up about $1.75 in about an hour. There’s little question they drove it up on Thursday. The question on everyone’s mind: can they drive the silver price up 10X (as they drove the GME price)? Reddit Takes on SilverĪnyways, the Reddit community has started talking about silver. We are not holding our breath, waiting for that conversation. With no bailouts if you lose your money, for big or small players. It may not be obvious, but freedom means you can invest, speculate, or bet-and risk-your own money. It should be obvious that some people want higher prices and some people want lower prices. What if the kilo-dollars talk about pushing the price down?.What if the billionaires talk about pushing the price down?.
If lots of multi-thousand dollar guys chat via Reddit about buying to push up the price of stocks, should that be illegal?.What about pushing up the price of silver?.If some multi-billion dollar guys chat via Bloomberg terminals about buying to push up the price of stocks, should that be illegal?.Here are some questions, if anyone is interested:
REDDIT SILVER SQUEEZE FREE
We hope that out of this will come a fruitful discussion of the contradiction of calling for government to interfere in markets by force-in order to make them free and fair. Which sounds like, “protect the little guys from the big losses when the stock crashes.” Meanwhile, the little guys think there should be regulation-of the big guys. They want the buying to stop so the price will stop rising and their losses will stop. The institutions that would lobby regulators to force Robinhood to stop little-guy buying of GameStop make a self-serving argument. A Call for More Regulation?Īnd now we have a case that turns this on its head. They need to be protected, which is why they are prohibited from buying private placement investments. Little investors are presumed to be incapable of assessing risks, or running their own affairs. Look only at the optics, which is what drives voters to support it. Forget whether this “protection” actually helps the little guy. And regulatory action.Īfter all, the whole sales pitch for regulation is to protect the little guy from the big guy. We have little doubt that they blocked buying because they are afraid of lawsuits from users who will lose money buying at the top. The Reddit users believe this is an attempt to manipulate the share price down, to benefit the short-sellers who are big players. On Thursday, some trading platforms blocked users from buying the stock. Then a group on Reddit, Wall Street Bets, promoted the idea of buying the stock because the short interest was greater than the total number of shares (they assumed that this means illegal naked shorting-not necessarily.)īut buy they did. The stock is heavily shorted, including by hedge funds-probably because the prospects for money-losing retailers are bleak. To understand why, let’s take a step back and look at the context. What is surprising is what happened this week. That’s not surprising for a retail store operator in the world of lockdowns.
A week ago, this was a $40 stock, with the company losing well over $4 a share. The hot story this week is the incredible run up in the stock price of GameStop.
0 kommentar(er)
