The ongoing silver price rally, allegedly sparked by retail traders from Reddit, could “tell us just how bullshit precious metals markets are,” said crypto exchange Gemini co-founder Cameron Winklevoss last Sunday.
“The ramifications of a #silversqueeze cannot be underestimated. If it’s exposed that there are more paper claims on silver than actual silver, not only would payoff be enormous, but gold would be next,” he tweeted, adding, “Bitcoin fixes this.”
Over the past few days, rumors that Reddit group WallStreetBets (known for the recent pump of GameStop stock)—is now targeting silver have created a lot of buzz on the Internet. According to Bloomberg, a coordinated band of retail traders initially managed to pump the price of silver by up to 6.8% last Thursday.
However, some members of WSB have recently denied their involvement in the “silver squeeze,” pointing out that such a campaign would only benefit large hedge funds.
However, retail traders are still at it today. By buying shares of silver mining companies en masse, they have pumped the price of silver to over $30 per troy ounce—its highest since February 2013.
According to Winklevoss, if the actions of retail traders—be it Redditors or not—could prove that the silver market is fraudulent, then gold could easily be next.
“If Silver market is proven to be fraudulent, you better believe Gold market will be next. HUGE implications especially for countries that have de-dollarized and central banks with large Gold holdings,” he noted.
Meanwhile, investor twins Cameron and Tyler Winklevoss are well-known proponents of Bitcoin and cryptocurrencies in general. Back in 2013, they invested $11 million in BTC—a decision that eventually made them billionaires.
“The #silversqueeze is going to tell us just how bullshit the Silver and precious metals markets are,” Cameron Winklevoss concluded.
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Source: Gold could get ‘GameStopped’ next, says Cameron Winklevoss