Force blank silver? The retail investors are in it!

US retail investors continue to make a fuss in the financial market, but their positions seem to be shifting.

On the one hand, following the release of WallStreetBets’ last silver short-squeeze post, spot silver once soared by 12% on Monday, setting the biggest one-day increase since 2008, gathering new firepower from the short-squeezing army; on the other hand, GameStop’s share price was large. Falling 30%, almost became the king of abdication.

But this time, the story is no longer a passionate version of retail investors fighting against institutions and ants fighting elephants. Many retail investors realize that some multi-head institutions are disguising themselves, trying to confuse themselves in the “Ant Alliance”, using the silver battlefield to make wedding dresses for themselves-and this will seriously insult the “mission of the retail army” “.

For a time, posts opposing the purchase of silver at the expense of GameStop swarmed in the WallStreetBets discussion area, and the story of retail squeeze-out gradually evolved from a “war movie” to a “spy war movie”.

Making wedding dresses for institutions?

A retail investor pointed out indignantly on the forum that retail investors are pushing for blank silver, but they may just make wedding dresses for the organization. This is a shameful mission.

Buy silver? You just stuff money directly into the pockets of our opponents, which are hedge funds.

Then you turned your back on this battle of justice and glory!

This argument is not unreasonable. For example, the biggest enemy of retail investors, Ken Griffin’s famous hedge fund Citadel, may be one of the main beneficiaries.

Bloomberg data shows that as of September 30 last year, Citadel held about 6 million shares of the world’s largest silver ETF iShares Silver Trust (SLV), equivalent to 0.93%, making it the fifth largest holder. Last Friday’s market data showed that with the soaring trading volume, SLV’s single-day inflow of funds reached 1 billion US dollars, which is almost twice the previous record of the highest inflow of this 15-year-old ETF.

In addition, data at the end of September showed that Citadel also held at least 17 other silver company stocks and ETF positions. As the latest position has not yet been made public, it is not clear how Citadel’s position has changed.

In any case, the above facts mean that if retail investors continue to push up silver in accordance with the “plan”, silver bull institutions represented by Citadel will benefit first. Because of this, the retail legion that used GameStop to overthrow the citron and overthrow Melvin, now has serious disagreements on silver. A WallStreetBets user wrote on Sunday:

CITADEL is the fifth largest holder of SLV. Pushing blank silver is not a top priority, and we cannot do it now.

The mastermind behind the scenes: retail investors or institutions?

Not to mention that the beneficiaries are the institutions, even the initial launch of this silver air-squeeze war may also be the set of institutions given to retail investors.

Why see? The following three facts may support this view to some extent:

First, what Wall Street saw and heard in yesterday’s article “U.S. stocks are changing battlefields! The new target of silver, boldly pulled to 1,000 dollars! ”Wrote that, judging from the posts on the forum, the short-squeeze methods and strategies are not as professional as retail investors do.

For example, in the full text of a “TheHappyHawaiian” user who advocates short-selling, he even gave a very professional “operation template” and explained why SLV is a better target among the two major silver ETFs, PSLV and SLV. Quite professional accumulation and market insight.

Guo Yafu, President of New York Tianjiao Fund Company, told Shanghai Securities News:

I carefully studied their post calling for long silver. From the content, it is definitely not something that ordinary retail investors can write. The post even mentioned the short position of JPMorgan Chase. If there are no institutional shadows, at least some people working in financial institutions have participated in their personal names.

FXTM special analyst Huang Jun also said: “There are many institutions in it all the time, such as some funds and silver miners.”

Second, it may be a little overwhelming to say how much the retail power can make waves in the silver market, but there are organizations that cleverly “lurking” among them and adding to the flames, it may be a different situation. Although silver’s 12% increase on Monday was far less than that of GameStop at that time, it was also a historic achievement, far from retail investors.

Brian Jacobsen, senior investment strategist at Wells Fargo Bank, said that there are huge differences between certain companies in Russell 2000 and the global silver or gold market. GameStop’s market value was only US$1 billion at the beginning of this year, and it was US$22 billion on Monday, but they are far smaller than The global market value of silver trading is approximately US$1.4 trillion. Since individual investors always have limited trading volume, their purchases may not shake global assets.

Thirdly, the person in charge of WallStreetBets noticed that “bots” fake users have recently appeared on the forums, which are dedicated to “boosting” many stock recommendation posts. As a result, more and more hot topics on the forum are made by robots instead of real investors. Driven.

Similar to what we usually see on Twitter and other social software, these fake users post the same message multiple times in multiple fake accounts to amplify the influence of the message. Research firm Epsilon Theory co-founder Ben Hunt said on Twitter on Saturday that his team analyzed 30,000 posts posted on WallStreetBets in the past 24 hours and found that up to 97% of them were generated by robots.

In the WSB forum, there have been users suggesting that hedge funds have used retail investors, and that silver shorts are not the result of a group battle among retail investors.

For example, one user wrote in a post entitled “Silver Shortfall is a joint attack by hedge funds so that they can continue the GME war (with us)”:

If you haven’t browsed the WSB forum or did some research on your own, you might think that many Twitter users are right to say “Now everyone is pushing for blank silver, we should also participate”. There are many Twitter accounts with WSB-related logos that are promoting all this. But this is nonsense, and stands on the opposite side of retail investors.

By buying/going long silver, you put your money directly into the pocket of the hedge fund on the other side of the GME war. Hedge funds are doing long silver, not blank silver.

The media, Wall Street and others are trying to persuade you to buy silver. This will be a tragic and irreversible decision. Because silver squeeze is false, it is not only likely that you will not make money, but it may also put you out of this (retail vs. institutional) justice and glorious war.

Others have noticed the fact that when everyone is saying that WSB’s next goal is silver, only 3 of the 50 most popular posts on the forum mention silver, and they are all warning retail investors to stay away from silver.

“Citadel is the fifth largest holder of silver. We urgently need to avoid blank silver. This is all hedge funds sending spam messages to users.”

“Silver short-selling 100% will not succeed. The essence of the problem is that silver is not a centralized market.”

“Trying to force blank silver is a bad idea. The market value of silver is as high as US$1.5 trillion, and WSB is hard to shake.”

On Friday, the U.S. Securities and Exchange Commission (SEC) stated that it is monitoring “extreme price fluctuations in certain stocks over the past few days” and that regulators will “in fact show the existence of abuse and manipulation of trading activities prohibited by the Federal Securities Act.” In time, take action to protect retail investors”.

The SEC did not mention fake users, but pointed out that “a person can arouse general interest in a small stock by publishing a large number of news under different aliases.”

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