Gold could be next to be hit by the ‘GameStop effect’
Bitcoin billionaire Winklevoss: Gold could be next to be hit by the ‘GameStop effect’
The ongoing silver price rally, allegedly triggered by retail traders on online forum Reddit, could “show us how beschxxxed the precious metals markets are”, crypto exchange Gemini co-founder Cameron Winklevoss said last Sunday.
“The ramifications of a #silversqueeze cannot be underestimated. If it’s revealed that there are more paper claims to silver than actual silver, not only would the payout be huge, but gold would be next,” he wrote on Twitter, adding, “Bitcoin fixes that.”
According to Bloomberg, a coordinated group of traders
In recent days, rumours that Reddit group WallStreetBets (known for its recent pump of GameStop stock) is now targeting silver have created a lot of buzz online. According to Bloomberg, a coordinated group of traders initially managed to pump the price of silver by Bitcoin Profit by as much as 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.
Individual traders, however, are still at it today. By buying shares in silver mining companies en masse, they have pumped up the price of silver to over $30 per troy ounce – its highest level since February 2013.
Winklevoss says gold could easily be next if the actions of retail traders – Reddit users or not – could prove that the silver market is fraudulent.
“If the silver market is proven to be fraudulent, you better believe the gold market will be next. That has huge implications, especially for countries that have devalued the dollar and for central banks with large gold holdings,” he commented.
Investor twins Cameron and Tyler Winklevoss are well-known proponents of Bitcoin (Go to Buy Bitcoin Cheap Guide) and cryptocurrencies in general. In 2013, they invested $11 million in BTC – a decision that eventually made them billionaires.