What is the new Goal of Small Investors who challenged the Big Funds on Wall Street?

Anyway, according to Business Insider, this new objective did not convince all Reddit users, because several of its users argued that it was necessary to remain focused on GameStop and not diversify into new investments.

The first signs that the silver market was about to be “attacked” came last Wednesday, Bloomberg recalled.

Comments began to appear on the Reddit chatroom r / wallstreetbets, the investor board that became famous for fueling a staggering Gamestop Corp. rally that sent its market value soaring 788% in one week.

Debate among Reddit users about whether to diversify bets or focus on GameStop

The participants of this platform began to encourage each other to invest in IShares Silver Trust, the largest silver exchange-traded fund, expressing that banks have been manipulating silver prices, keeping them artificially low and “plugging” a shortage of physical supplies.

Still, this slogan has been the lynchpin of many “conspiracy theorists” in precious metal circles for decades, if not centuries, with their constant attacks on banks and the majors, Bloomberg stressed.

From this targeting, shares in small silver miners began to rise early Thursday morning, with First Majestic Silver Corp. cited on Reddit as a target for a short-term attack, rising as much as 39%. Then retail investors started to enter IShares Silver Trust, which was up 7.2%.

“Silver is suffering a liquidity crisis. The ‘hoodies’ are entering the silver and the party is on, “he told Bloomberg Phil Streible, chief market strategist at Blue Line Futures LLC in Chicago. “All those other stocks, like GameStop and AMC, are unraveling because they have been restricted, and they have to go to other sales opportunities and silver is an easy target to identify,” he added.

Bob Haberkorn, RJO Futures senior market strategist, argued that “this is not based on any global event, it is just people on a bulletin board putting all their weapons towards the precious metals markets.”

Options markets were hit by the frenzy, with traders and brokers seeing wide bid and ask margins on IShares and Comex contracts. A record 3.1 million IShares Silver Trust option contracts were traded.

“The implied volatility that is being traded in the options market right now is broader than I have ever witnessed,” he said. James Gavilan, director and advisor of Gavilan Commodities LLC. “The market is taking into account large swings in the price of silver, and an already illiquid market is showing extremely wide quotes for options, which means that traders are concerned about the difficulty of hedging their positions.”

Seeing such wide volatility spreads is “mind-blowing, impressive, it’s really shocking,” Gavilán said.