Reddit Army Returns for a Silver Raid


In late January, a group dubbed “The Reddit Army” unexpectedly placed their focus and dollars into the precious metals market due to their beliefs of it being manipulated.

By now, most of us are aware of the Gamestop squeeze they were responsible for; in short, they believed (and were right) that large Wall Street firms were placing selling pressure on the stock, keeping its price suppressed.

They felt that Gamestop’s value was indeed much higher than what its market price reflected. So, they banded together, placed their money where their mouths were, and caught Wall Street red-handed.

That’s when to everyone’s surprise, they continued their crusade into the silver market.

They felt that the spot value of silver was much higher than what the markets reflected and that some form of price manipulation was the reason for this.

While the Gamestop short squeeze was an uncommon event in itself, when the attention shifted towards the silver market and caused a stir within it, they did much more than influence the price; they lifted a veil for hundreds of thousands of investors worldwide.

Their combined efforts assisted in silver futures climbing 8% in one day. This was one of the most significant moves that it had experienced on the NYMEX since 2013.

When you consider how large the silver market is and its historical price movements, it’s undoubtedly an impressive feat.

Allianz chief economic advisor Mohamed El-Erian made the following statement regarding this event, “It’s a very different target, but the fact that you can move silver, such a large market, is an indication to everybody that they have to take these new technicals seriously.”

Nearly five months later, and the Reddit Army is at it again.

In late May, the hashtag #MayDay began circulating as the Reddit Army prepared for a silver battle yet again. Their message, on May 1st, everyone attempts to buy 100oz of physical silver.

And the markets on Monday reacted positively to their weekend silver buying spree. However, they have promised that there will be many more “silver raids” to come this year.

Combine this with the fact that the World Silver Survey reports an expected 15% total increase in total silver demand in 2021, pushing it to 1.03 billion ounces, with 26% of the rise stemming from 252.8 ounces of physical silver.

Bidens administration also approved the $2.25 Trillion infrastructure plan this year which promises to extend the Investment Tax Credit (ITC) for another decade.

The ITC has been a catalyst on the silver market as it allows property owners to deduct up to 26% of the cost of solar panel installation- and there’s said to be over half an ounce of silver in each solar panel.

Regardless of where the market is headed, we believe there’s always a silver lining to be found.

Learn how to diversify and protect your wealth and retirement with assets like gold and silver by calling American Hartford Gold at 800-462-0071.

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