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All Hell Breaking Loose? - Because of Reddit? of all things?

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Revenant

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So, it would appear that the group of redditors that have been playing games with Gamestop and AMC stock (among others) are now plotting a short squeeze on SLV and the silver futures market, which is driving up spot a little (but not insanely much so far). It's also causing a crush of orders to hit the dealers, causing the dealers to limit or stop taking orders and it's causing the prices of / premiums on physical metal to spike and getting physical metal is staring to cost $35+/ounce now.

One of them has apparently argued that they could send the price of silver up to $75 in the near term by demanding physical delivery. I don't really see that happening because, from what I've read, a lot of these contracts allow for them to be filled with the cash value and not with physical silver in the event of a force majeure where they can't get the physical metal. 

Still, I don't see how this doesn't impact the price of current and future mint prices. The prices of US Mint and other NCLT bullion issues has already spiked painfully in the last year or so and this is just going to make it so much worse. And I like buying these things when I'm not busy chasing hyperinflation notes.

I've referenced before the fact that I spend some time on reddit and I've spent some time looking at these threads. These people are nihilists and arsonists. So many of them are just bragging about just being determined to hit "Wallstreet" and how they don't care how much they lose or if they lose it all if it hurts some nameless hedge fund guy who they don't know, who doesn't know them, and who they will never meet. Never mind that 1) it's pension funds and 401K accounts that own some of these hedge funds (maybe even theirs) and 2) if you lose everything it probably means that someone else got it and if it wasn't you it was probably them. This whole thing seems definitionally insane. These people are either liars or lunatics and I don't know what's worse.

I'm reminded of a line from Babylon 5 - one of my favorite shows of all time - "You forgot the first rule of the fanatic. When you become obsessed with the enemy, you become the enemy."

Only the preservation of life deserves to be held paramount.

Letting someone live in your head rent-free while you hate them and allowing the desire to hurt someone you don't even know to override all other considerations can never end well.

Fortunately I'm not having anymore kids and so I don't have to worry about 2021 birth year sets or anything else that would screw me over later on if this causes problems for coin supplies or anything else down the road so I'm probably just going to sit this one out and hope it passes. I just hope a lot of pretty old coins don't get melted in the process because a bunch of financial arsonists what to play a game to make a quick buck - consequences be damned.

Just as a disclaimer - I don't own any of these stocks, but I do own silver. lol I'm not touching that other craziness with a 10 foot pole if I can avoid it. If anything I do own starts getting involved in any of this screwy-ness I'm out as fast as I can get out.

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THREE OBSERVATIONS:

#1. There are TWO sides to every coin, i.e.,Reddit, etal. vs. Wall Street.

#2. I own silver en masse. I buy/bought more than I sell. If the price goes to the Moon and stays in orbit, then that's fine.

#3. Kids are overrated:) Disclaimer; I have 4 adult children, and 6 grandchildren. Love 'em most of the time......................

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13 minutes ago, STU GORE said:

#2. I own silver en masse. I buy/bought more than I sell. If the price goes to the Moon and stays in orbit, then that's fine.

It's not silver or the value of my assets I'm concerned about in this particular. I'm concerned about the impacts that this might have on the hobby and the population of some currently common and low value coins - we've seen mass meltings before. I don't think the $70 Billion silver market going to $300 Billion is going to change that much in terms of global finance. But I am deeply saddened and disturbed by this bizarre, "burn it all down" mentality I seem to be seeing more and more.

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Although unlikely, part of me hoped to see a rapid rise to >$50 as I could have sold my bullion silver for a very good profit and released funds for more numismatic items  - it would have generated plenty of space too!

Babylon 5 (thumbsu

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5 hours ago, ColonialCoinsUK said:

Although unlikely, part of me hoped to see a rapid rise to >$50 as I could have sold my bullion silver for a very good profit and released funds for more numismatic items  - it would have generated plenty of space too!

Babylon 5 (thumbsu

If it spikes to $50+ because of these shenanigans I will likely face pressure from my wife to liquidate some of what I bought at $20 and wait for the squeeze to pass.

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all hail reddit.....its about time the playing field gets leveled....i totally understand the mentality of the reddit buyers, make the financial sacrifice n lose it all is sound financial principle if it accomplishes the long term goal, make the short sellers cover everything they shorted n if they go bankrupt so be it, not a loss to anyone....its a win win, the price of the stocks they have to sell goes down n creates buying opportunity for everyone that wants to buy, price of shorted stocks go up n owners make money, n best part probably creates new regulations on short sellers where they cant over short n cant damage companies trying to make a go of it, plus silver in this case maybe gets to a reasonable ratio with gold....i would guess the future of the stock market just entered a new phase....sort of like trying to unsee something after u have seen it.....

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8 hours ago, zadok said:

best part probably creates new regulations on short sellers where they cant over short

I think selling naked shorts is and always has been illegal.

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I took time to figure out what it means to short a stock. There is something in my brain that just can't wrap it's arms around betting on a stock going down. It just doesn't make sense. However, if I have learned anything, it is this, where there is greed, there is a way. Now that I'm retired and living off my 401K, I'm ticked about all this. I am the little guy who is figuring out how to preserve and live off my 401k for the next 30 years and still have something left to leave to my kids. My broker tells me that this current environment is not sustainable. We'll see. After all, things rebounded well from the COVID hit.

As far as silver goes, I bought a couple rolls of SAE's several years ago as an investment before I realized that I am a collector first and foremost. So, I decided to hang on to them and wait for silver to make a move before selling them. There are local dealers in my coin club that can't get their hands on enough SAE's to meet the demand. I'm thinking that I'll have to pay them a visit soon.

In the end, I have the bulk of my collection, which is substantial, if I should need it to live on it, and a house that is $5,000 away from being totally paid off. I am blessed to be in a good position to weather a financial crisis should things go south. That said, I would rather not have things go south. Much better to have the resources, should I need them, rather than having to use them in order to weather a storm. Gary

Edited by gherrmann44
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yep...the one stock was 140% shorted that was documented but in actuality it was closer to 220% shorted as some of the shorted stock had been sold without shares to back the shorts....those corrupted individuals deserve all that they get, $74 billion in losses so far, hopefully it becomes more...while i am reasonably heavy into the various markets, my 401k is totally reinvested in various markets, my real security is in hard assets...gold, silver, platinum etc...i try maintain 10 years worth of expenses in metals at all times....my numismatic endeavors r just a hobby, a diversion to keep my brain working n not something i depend on to live....but i guess its all those things put together that keeps the world going around, that or the little rodent in that cage.....

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I own enough silver that it could be life changing if it skyrocketed, but unfortunately not that much, it would probably have to hit about $300 to do me any good. 

 

I sadly had to sell much of 90% and assorted silver for a huge emergency a while back, but I have no regrets. I was glad it was there, and it served its purpose. 

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