Silver hits eight-year high as Reddit frenzy turns to commodities

In an interview, RocketBoomGo gave his first name as James and said he is a former Merrill Lynch trader who lives in Florida. The Telegraph has not been able to verify his identity.

The user said that his silver trades were motivated by money printing by central banks, which some have claimed is devaluing paper currency, as well as growing demand from industrial firms that use the meta in products. He added:  “The market was primed for a run on silver.” 

However, several Reddit users warned that the major investors being targeted by their movement could actually benefit from rising silver prices. 

For example, Citadel – a hedge fund betting against GameStop that was hammered when shares rose last week – owns large volumes of the metal and could profit as a result. One Reddit user urged day traders not to pile into the commodity, saying: “It is imperative we do not squeeze it.” 

JPMorgan is believed to hold short positions in silver but also to have stockpiled masses of the metal last year.

It is likely that larger investors have now acted on the turmoil started by retail investors in the silver market, meaning the way ahead is harder to predict.

European stocks targeted by retail investors as a “short squeeze” have fallen back in the past few days, although some US stocks have continued to rally. 

Even after the latest fall, GameStop’s shares were at $245, valuing the company at $17bn. They started the year at $17.