Media reports Redditors are targeting silver, but WallStreetBets denies the push

Posted: 1 February 2021 3:08 pm
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News outlets say silver is the new GameStop, but WallStreetBets claims it’s an orchestrated media campaign.

It turns out that the next meme stock isn’t a stock at all: it’s silver. Or — is it? News outlets are reporting a Redditor-backed silver push but r/wallstreetbets is shaking its head.

Media outlets report that Redditors are going after silver

Following the GameStop short squeeze frenzy, investors waited with bated breath for the next stock on Reddit’s hitlist. It wasn’t long before a handful of meme stocks emerged, including AMC, BlackBerry and Nokia.

This morning, news outlets claim the newest meme stock isn’t a stock at all, but rather a commodity on the metals market: silver. Media reported Redditors are angling their short squeeze play at this lustrous commodity, with prices swelling 11% to nearly $30 an ounce — the biggest single-day move since 2009, reported the Wall Street Journal.

And The Wall Street Journal isn’t alone: numerous news outlets are reporting the Redditor-backed rush, including Bloomberg, CNBC, The New York Times, Reuters, USA Today and Yahoo! Finance.

But here’s the thing: Reddit says it isn’t involved.

WallStreetBets denies the claim

The subreddit r/wallstreetbets — a Reddit investing forum now 7.8 million members strong — claims it has nothing to do with the silver rush reported by mainstream media outlets this morning.

In fact, some members of WallStreetBets have gone so far as to call it an orchestrated media campaign.

“JPMC and the whales own it and manipulate us little guys for a quick side hustle during ups and downs,” wrote destro2323 on r/wallstreetbets. “Don’t get fooled. They are just using our name now and laughing.”

Much of the buzz on r/wallstreetbets this morning is about the silver push advertised by the media — and how the news event has been designed to distract retail investors from holding GameStop stock.

“I could only afford 2 GME last week,” wrote Chidit on r/wallstreetbets. “After this weekend’s smear and propaganda campaigns I am buying another.”

Ultimately, it’s unclear where the sudden silver interest originated. But regardless of what sparked the push, silver prices are up, and many retail investors exploring the metals market for the first time are wondering how to invest.

Risks of investing in silver

Before you hop headlong into the silver craze, consider the risks of investing. First, silver can be volatile, and you need to look no further for proof than the current market conditions. This metal has a history of volatility and is easily swayed by market events, industry news and global demand.

Second, if investing in bullion, be wary of fraud. Silver bullion can be bought and sold from numerous online retailers, but not all are reputable. Carefully investigate your dealer’s background and credibility before making a purchase.

How to invest in silver

There are four ways to invest in silver:

  • Silver stocks. Silver stocks are stocks from companies that mine and produce silver and can be bought and sold through a brokerage account like any other stock.
  • Silver ETFs. Silver ETFs invest in silver by owning physical silver bullion or by investing in mining companies and offer the potential for broad market exposure.
  • Silver futures. Silver futures represent an agreement to buy silver stocks at a set price at a specified time in the future. Not all brokerage accounts offer futures, and this type of trading is notoriously risky and best reserved for experienced traders.
  • Silver coins and bullion. If you prefer an investment you can hold in your hand, silver coins and bullion can be purchased from online and in-person retailers. Just remember that you’ll be responsible for its safe storage once acquired.

To buy silver stocks, ETFs or futures, you’ll need a brokerage account.

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