The Truth Behind Wall Street Bets Reddit Group and This Week’s Silvergate
What Really Drove Silver Price to Increase?
Three weeks ago, no one would have guessed that an online Reddit subforum filled with members who refer to themselves as apes, bolster about having diamond fingers, thick foreheads, and massive amounts of back hair would receive worldwide blame for manipulating the price of silver this week. This week it happened and Gamer Ninja has uncovered the actual reason(s) behind why silver futures rose above 13% on Monday, briefly traded above $30 for the first time since 2011.
What really happened with Silver and Reddit group Wall Street Bets?
Over the weekend, but primarily on Monday, the finical world had been subjected once again to an on slot of news and media content from across the globe focused on the sub-Reddit group Wall Street Bets. The narrative driving the reportings this past weekend and on Monday claimed the group had direct ties connected to sizable fluctuation within global markets. This time, news outlets such as Forbes and Bloomberg had unfoundedly reported, without almost no sources, that the Reddit group as a whole had been engaging in everything from an epic silver squeeze to promoting conspiracy of the precious metals world.
Over the past few weeks, Wall Street Bets has been the dominating force behind the sudden and substantial stock price increase of several companies who underperformed throughout 2020 due to COVID-related restrictions. The two main players in this Wall Street drama are video gaming retailer GameStop Corp. and the cinema chain leader American Multi-Cinema, Inc. The Reddit group’s userbase, then roughly 3.5 million but has since grown to almost nine million users, purchased up vast quantities of some of the most “shorted” stocks on the stock exchange market.
The world reacting to the claims that the Reddit trading group Wall Street Bets and squeezing the silver market, from Gold and Silver buyers to retail traders, is similar to the Great White Hunter screen in the movie Jaws.
A couple of online marketers played everyone and the whole world. Not to devalue or increase stock prices. They started the big dupe to peddling a hooky “#1 All-Time Bestseller on Precious Metals Investing” book.
Did the Reddit Group Wall Street Bets Partake in The Recent Spike to Silver Futures?
After extensively monitoring the Reddit Group r/WallStreetBets for three weeks now, Gamer.ninja had found no examples or proof of the Reddit group independently or collectively as a whole was promoting or encouraging the buying or selling silver in efforts to squeeze banking and finical institutes.
Given what our team knows and explicitly targeting squeezing silver futures in our research this week, Wall Street Bets was no collective effort to target and squeeze silver futures. However, we did uncover an interesting path to becoming the featured text message on CNN News Room‘s finical segment on Monday.
How #Silversqeeeze Became a Global Headline
A quick version of what occurred; there were two posts created on Wall Street Bets on 01/27/2021 that did suggest and detail squeezing silver. As with any post on the sub-Reddit now, it had thousands of random comments within a short period. Users commented on everything, and anything but a good majority of the comments had nothing directly to short squeezing silver.
These posts, specifically the one we have referenced below, were removed by the post’s authors. We do not know who or what was behind the initial substantial buy-up of $SLV, iShares Silver Trust, after-hours and pre-market on the 27th and 28th. Was it the members of r/WallStreetBets on Reddit who viewed the two posts? Was it non-member traders who viewed the posts before they were altered or removed? Or, was it another source that would benefit from a silver futures increase?
If Wall Street Bets had played a role with the recent price increase of silver, it would be for the growth seen on the morning of the 28th, the day after the two posts showed up. To credit or blame Wall Street Bets for the massive increases of silver seen on Monday, February 1st is simply not valid.
The first of basically only two posts show up on the Reddit group WallStreetBets. Both initial posts were removed by the author or WallStreetBets admin, but their existence is still available.