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• Reddit stockpile movie#

If the silver miners see their share prices ramped up, they will happily issue new shares to pay for more exploration and production efforts.If the silver price runs beyond its fundamental justification too far, too fast, silver miners - who are inherently long silver that is still in the ground - will be happy to hedge forward production years out by selling futures contracts.If JP Morgan actually had such a short, it should have blown up with the silver run of 2011. Morgan, the giant money center bank, has a vast short position that is the equivalent of a hidden naked short - but this rumor has no real basis and is literally decades old. Unlike the GameStop squeeze, there is no targeted party who can be forced to cover their shorts due to margin calls when it comes to silver, in fact, hedge funds are overall net long.There is a lot of silver stockpiled above ground relative to modest industrial supply needs, and the squeezers are likely to run into a wall of it.Some of the problems the silver squeeze will face are as follows: It can certainly move the needle in the short-term, as we are already seeing with the silver spot price.īut ultimately, squeezing a global commodity is a whole other level of difficulty in comparison to squeezing a stock with a roughly 50 million share float sold more than 100% short. Various silver miners are also up 10% or more in concert with the silver price hitting multi-year highs.įor multiple reasons, we doubt the Reddit silver squeeze will work. Morgan in particular).Īs of Monday morning, as this is being written, the Reddit silver squeeze is working, with spot month silver futures and SLV, the bellwether silver ETF, both seeing one-day price moves of 10% or more. The goal of the “Reddit silver squeeze” (that is what we’ll call it) is to drive the price of silver to $50 per ounce or more, while creating turmoil for the money center banks (and J.P. Meanwhile, even as the GameStop squeeze heads toward a crescendo - an endgame where the GME share price either soars beyond $1,000 or plummets into double digits - the Reddit army is turning its attention to the silver market. The attitude seems to be: “Dear Wall Street, you caused the crash of 2008, and wrecked the economy, and then got bailed out this is the little guy paying you back.” If the price of GME is driven so high that hedge funds are forced to cover their short positions at $1,000 per share, or even $2,000 to $3,000 per share or something worse, the ripple effect created by tens of billions in losses could destabilize the entire market.Ī meltdown would probably be just fine with the GameStoppers (how’s that for cosmic humor?). Goldman and others are worried about the ripple effects of a successful squeeze. And we’re very, very pissed off.”Ī new research report from Goldman Sachs notes that “if the short squeeze continues, the entire market could crash.”

Reddit stockpile movie#

We’ve all been raised on television to believe that one day we’d all be millionaires, and movie gods, and rock stars.

“We’re the middle children of history, man. The GameStop squeeze is part prank, part strategy, part global protest, and ultimately deadly serious: In the movie, Brad Pitt’s character gives a speech to a group of Fight Clubbers that feels almost perfectly suited to the ethos of the moment.