Silver stocks such as First Majestic Silver Corp (NYSE:AG) are shining amid speculation that the Reddit fueled frenzy will extend to the precious metal and companies associated with it.
What Happened: First Majestic shares closed 21.56% higher at $16.86 and gained 12.69% in the after-hours session on Thursday. The iShares Silver Trust (NYSE:SLV), an ETF that tracks silver closed 5.55% higher at $24.72.
Spot silver traded 0.71% lower at $26.227, while March silver futures were up 1.38% at $26.28 at press time.
On Thursday, A WallStreetBets post claimed that banks are “manipulating gold and silver to cover real inflation.” The post went on to say that the inflation-adjusted price of silver should be $1,000 and not $25.
“$AG is essentially $GME for Silver, highest short float in the sector, nice leverage to silver, and just broke out above 10 year resistance too,” said another posted on the Reddit investor forum.
Other silver stocks that have seen a surge include Hecla Mining Company (NYSE:HL), which closed 16.84% higher and gained 3.2% in the after-hours session, and Fortuna Silver Mines Inc (NYSE:FSM), which closed 13.73% higher at $7.62 and rose 7.09% to $8.16 in the after-hours trading.
Why It Matters: Investor Chris Camillo said on Benzinga’s Short Squeeze videocast that he owns a $500,000 position in First Majestic and also owns iShare Silver Trust.
The Reddit investors are clamoring for vengeance against the likes of JPMorgan Chase & Co (NYSE:JPM), who they allege have manipulated the silver market.
If the investors on the forum are successful in moving silver prices, ETFs associated with silver-like ProShares Ultra Silver (NYSE:AGQ), and Aberdeen Standard Silver Shares ETF (NYSE:SIVR) could see gains.
AGQ closed 11.42% higher on Thursday, while SIVR saw gains of 5.46%.