Someone might go to jail for this

Trying to organise a corner in a commodities market?

From a PR email:

After Gamestop and Wall Street Bets was all over the news, I joined the spin-off Reddit community called Wall Street Silver.
Wow, I can’t believe what I discovered… In about five weeks, they have already 60,000 members and it is growing at exponential speed. The members are literally buying up all the Silver they can find on the market, and have created a significant shortage to the Silver market.

Retailers worldwide have been running out of silver. Call any bullion retailer and ask them, they are all running out of Silver and there is no relief in sight. One major retailer has reported a 5,000%+ jump in sales. It is reminiscent of the early days of Covid when stores were running out of hand sanitizer, paper towels, etc..

These millennials are committed to cornering the market on Silver.

They created a YouTube Channel and are interviewing legendary investors including Jim Rogers, Marc Faber and David Tice.

They call themselves “Silverbacks” (after the gorilla) and compete with each other posting pictures of their Silver. They call their collection “stacks” and themselves “stackers”.

Please let me know if you are interested in developing this news piece.
I can do these two things to help you:
— Send you the press kit
— Arrange an interview with Ivan Bayoukhi, the founder of this Reddit group

The Hunt Brothers also come to mind. Trying to corner a commodity is a lot, lot, harder than a stock…..

8 thoughts on “Someone might go to jail for this”

  1. Dennis, You Know... The Rational One

    I’m surprised Reddit hasn’t shut it down. From a liability standpoint it might be a good idea.

  2. Boy will they have problems if they need to take physical delivery. I once worked for a firm that took a big position in silver. It filled the “vaults” at Heathrow and London and still the cargo 747’s were bringing more.

  3. Apparently, Bunker Hunt gave up smoking cigars when he realised it cost him $20,000 a year to unwrap them….

  4. I once read that there’s a natural negative feedback on silver. If the price rises people sell granny’s old silverware from the attic. But could there be enough to matter?

  5. Pretty much, yes. Humans have been mining it for several thousand years. There’s a lot – a lorra lot – out there in use. Get the price up enough and that starts to flood into the melting shops. Three weeks later you’ve got new bullion.

    This doesn’t mean that it’s impossible to corner silver. It just means that you’ve got to have very, very, deep pockets. You get the bullion price up, then that flood – and it really will be a flood – from the real world arrives and you’ve got to keep going. In theory you could. In practice no one has deep enough pockets. Canute and tides sorta thing, the point he was making. You can try to hold ’em back but….

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