Do Redditors really think silver is the next GameStop?
After shaking up Wall Street with the GameStop rebellion, the Reddit army is turning its sights on silver, according to several reports.
But not according to Redditors themselves.
With the price of silver surging on Monday morning, and #SilverSqueeze trending on Twitter, it appeared as though the "little guy" investors on WallStreetBets — the forum that kicked off the GME squeeze — had found its new target.
But the vast majority of top posts on WallStreetBets on Monday morning were not advising to buy silver; quite the opposite in fact.
Among the highest rated posts, with thousands of awards and hundreds of thousands of upvotes were:
The Silver Squeeze is a hedge-fund coordinated attack so they can keep fighting the $GME fight
There is no silver short squeeze happening. NONE. NEVER.
Complete lies. Stay away from silver right now
Trying to Short Squeeze Silver is a Bad Idea
It's f------ awful seeing the "Silver" misinformation campaign everywhere I look
SEC Intern pls read: False media reports about 'Reddit traders' moving into ____ is clear market manipulation
They act like silver is so fetch
Many of the WallStreetBets members believe Citadel — the hedge fund that bailed out Melvin, the short seller burned by the GameStop debacle — is behind the push to buy silver... because it owns a hefty stake in the metal.
They argue that squeezing silver, which unlike GameStop has a market cap in the trillions instead of billions, is impossible, and that the company is trying to trick Reddit users into investing in something they ultimately have control of.
They claim the hedge funds are long on silver, instead of short, like they were on GameStop — so they are counting on the share price increasing over time, not decreasing... which it will if an army of Redditors start buying.
"This is BS & the straight up the ANTITHESIS of who we are," one of the post authors wrote. "By buying silver/going long on silver, you would be directly putting money into the pockets of the EXACT HEDGE FUNDS ON THE OTHER SIDE OF $GME."