In the recent week, arguably the most talked-about Reddit group, WallStreetBets (WSB), has taken it up to large Wall Street hedge funds. Their latest initiative resulted in pushing silver to an 8-year high.
As the price of the precious metal surges, popular TV host and Bitcoin proponent Max Keiser connected their rebellion with Bitcoin as both aim to find an exploit in a corrupt financial system.
WSB Short Squeeze On Silver
A Reddit group with millions of quickly rising subscribers made the news last week following a huge shares pump for a struggling company called GameStop. GME stock had large open short positions held by hedge funds, which elevated the pumping effect. After making a huge success with GME, which rose by almost 10x in weeks, WSB continued to the cinema giant AMC, NOK, and a few other infamous stocks.
All of the above had one thing in common: a high number of short positions by leading Wall Street hedge funds.
Their actions had multiple consequences from a regulatory standpoint to involvement in the crypto space, but it seems that they have a new target this week – silver.
This resulted in a 25% surge for the futures contracts of the precious metal to a high of just about $30. This became the highest price level in over eight years.
Rich Dad Poor Dad author Robert Kiyosaki was among the many that approved the silver initiative as he believes that the precious metal market is manipulated.
I am excited about Reddit going after the manipulated silver market. I was not in GameStop but I am in silver. If you have seen me on TV ads for Lear Capital I drank the silver Kool Aide way back in 1964 the year silver coins became fake silver. God bless Reddit traders.
— therealkiyosaki (@theRealKiyosaki) January 31, 2021
The Chief Economic Adviser at Allianz, Mohamed El-Erian, has highlighted the significant differences between the GME and silver situations as the latter is a substantially larger market. Consequently, he noted that some of the hedge funds that were short on the precious metal are now “said to be long silver.”
Max Keiser: Bitcoin Is The Ultimate Short Squeeze
Max Keiser, the Keiser Report host, and co-founder of Heisenberg Capital, also weighed in on the discussions. While talking to CryptoPotato, he connected the WSB’s recent developments with the primary cryptocurrency and noted that they have more tactical similarities than one might realize at first glance.
“The idea is to find an exploit in the corrupt system and swarm on it.” – asserted Keiser but also pointed out one significant difference.
“The reason WSB, Reddit, and SqueezeSilver should focus exclusively on Bitcoin is that Bitcoin is the best, hardest money ever and once it drives fiat money out and becomes the global standard, we’ll see a permanent, societal change where central bankers and the poverty and violence they promote are erased from our lives.”
He predicted that this transformation will occur gradually as “all roads lead to Bitcoin as the ultimate short-squeeze in a world swimming in negative interest debt and worthless fiat paper backed by nothing but violence, spectacle, and cheap celebrity-economist propaganda.”