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As #silversqueeze trended on Twitter on Monday, Silver futures jumped more than 9% to $29.42 per ounce, which marked the highest intraday gain on silver since 2013.
Shares of Pan American Silver rose more than 9%, First Majestic Silver rose 18.7%, Hecla Mining spiked 21.8%, and Coeur Mining soared 17.6%.
The surge is in the wake of the recent Gamestop stock surge, where Redditors teamed up to buy Gamestop stock in order to trigger a short squeeze, in which hedge fund Melvin Capital, who allegedly had a big short position in the stock, was forced to buy-to-cover their position at a loss.
As a result of several Redditors driving up the price of the stock, as well as short-sellers being forced to buy back at a loss, the stock price rose drastically.
Several retail trading brokers, such as Robinhood and TD Ameritrade restricted trading on several securities including Gamestop, AMC, Nokia, and Blackberry as a result of volatility.
Trading on the aforementioned securities was limited to closing out positions only. Traders were restricted from opening new positions.
Widespread outrage over the decision to restrict trading of these securities even led some to suggest that hedge funds pressured Robinhood.
Barstool Sports founder Dave Portnoy said, “[Robinhood] basically stole money from their own clients. They knew that was going to happen to help the hedge funds basically cover… That’s flat out criminal.”
“Completely false. That’s complete misinformation… Nobody pressured us. We didn’t do this at the direction of a market maker that we route orders to or any other financial market participant. This was an internal operational and risk management decision that the firm made so that we could protect the firm and protect our customers,” he said.
The decision to restrict trading drew criticism from both sides of the political aisle.
“This is unacceptable. We now need to know more about @RobinhoodApp’s decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit. As a member of the Financial Services [Committee], I’d support a hearing if necessary,” Congresswoman Alexandria Ocasio-Cortez said.
Texas Senator Ted Cruz retweeted Ocasio-Cortez’ message in agreement.
CEO of Vayner Media Gary Vaynerchuk attributes the recent stock surges to human interaction via the internet, such as the congregation of Redditors on r/wallstreetbets which initiated the Gamestop stock surge.
“It’s capitalism. It’s business… The internet is the infrastructure of society and humans that are on top of it and platforms that get people together to communicate, this is just the reality of the situation, the staying power,” Vaynerchuk said.
“This is just the beginning… unless we’re looking at going the track of china or russia and actually regulating our entire internet, you can’t stop humans from communicating to each other.”