Reddit Posters Inspired the Biggest Ever Physical Silver Buying Frenzy
TOLEDO, Ohio, Feb. 1, 2021 /PRNewswire/ — SD Bullion, Inc reports that the demand for physical silver bullion has hit an all-time high over the weekend as the ongoing short squeeze continues, allegedly inspired by the WallStreetBets’ subreddit community. Virtually all the major wholesalers and retailers are out of stock on a vast majority of silver coins and bars.
On Bloomberg TV, at approximately 9:00 p.m. EST last night, SD Bullion CEO Dr. Tyler Wall described the state of the physical market. “Pretty much all physical silver is gone, in terms of live inventory. Most items on our website are at a 30% premium, and we cannot source it for much less than that right now.”
During normal market conditions, premium percentages range from 4% – 8%.
Over the weekend, this surge in physical precious metals demand actually halted the sales on popular online bullion websites like SD Bullion.
“This is about to get really interesting, as there was very little inventory left from the suppliers and mints going into Friday’s market close,” explains Dr. Wall. “In a normal market, we can normally find at least one supplier willing to sell silver ounces over the weekend if we exceed our long position. However, everyone we talked to is afraid of a gap up when the market opens on Sunday. Some precious metal analysts estimate there to be 100 paper certificates claiming ownership for every one ounce of deliverable silver metal.”
And when the market did open Sunday, the suspicions were correct. “When the markets opened, we had 20 times more users on our website than a normal Sunday evening. Some of our competitor’s websites went offline. And the demand has continued to early Monday morning trading,” explains Dr. Wall.
With this new phenomenon of short squeezing specific markets by large online communities, which market will they target next? A lot of speculators believe they will be taking on the physical gold market next. Only time will tell if the physical bullion markets will be able to continue ready delivery to meet this historic demand for physical silver bullion.
NEWS PROVIDED BY SD Bullion, Inc
Feb 01, 2021, 16:30 ET