The Reddit traders are at it again in this new week and new month, and they have already made their presence felt in the metals market, as Spot silver prices have climbed almost 11% already on Monday to $29.89. If this price holds or increases through trading Monday, it would be the biggest one-day increase in silver on NYMEX in 11 years. Back in March of 2009, silver popped 13% in one day.
There is an easy to buy ETF called iShares Silver Trust that tracks the price of silver, and that has risen almost 11% Monday morning too.
There are more examples of who smaller investors who get their marching orders from a Reddit forum have infiltrated the silver market. Coeur Mining and Pan American Silver, two mining stocks publicly traded soared 32% and 20% late last week when it was becoming evident that silver would be the next target for the traders.
The Reddit traders were active on multiple threads Sunday night. Another sign of the growing influence of this group is the fact that the phrase #silversqueeze was trending on Twitter Sunday. Allianz chief economic advisor Mohamed El-Erian told CNBC’s Squawk Box that the Reddit group is something the financial world has to account for because they have proven their power. “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,” he said.