Silver Isn't The Next GameStop

Don't expect to see billboards about SLV (image via r/WallStreetBets). 

We're Bullish On SLV

Let's get this out of the way before we're accused of being silver bears: we've been bullish on the iShares Silver Trust ETF (SLV) for months. Each trading day, we rank all the securities in our universe by our estimate of their potential returns over the next six months. We base that on our analysis of their past returns as well as options market sentiment on them. We broke down this analysis for SLV in December (Why-Oh Silver). SLV was one of our top ten names in our most recently completed top names cohort, the July 30th one. 

And it was one of our top ten names repeatedly since then, including in our December 17th cohort. 

It was also one of our top ten names last Friday. Currently, it's #14. But it's not another GameStop (GME). Let's look at why, and then show a way you can stay long SLV while limiting your downside risk. 

Wall Street Bets Isn't Touting SLV

Contra claims that Reddit bros have branched out from GameStop to silver, top posters on r/WallStreetBets have warned the board against it. 

As we noted last week (Capital Insurrection), there's been a populist aspect to the GameStop short squeeze on Reddit: home gamers versus hedge funds. That's not the case with silver. The home gamers are aware that Citadel and other Wall Street firms they oppose are among the top holders of SLV. 

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No Scrubs 4 weeks ago Member's comment

Really interesting. So WHO IS behind this disinformation campaign?

David Pinsen 4 weeks ago Author's comment

Thanks. I don't know, but I've seen some longtime silver bulls pushing this.