Silver stocks are spiking today as #SilverSqueeze trends on Twitter. Since the collapse of SVB Financial’s (NASDAQ:SIVB) principal subsidiary, Silicon Valley Bank, confidence in the banking sector has been falling. That in turn has prompted investors to shift their focus toward what seem to be safer investments, like precious metals.
Seeking Alpha reports that gold and silver prices are now rising steadily, with gold passing $2,000 per ounce “for the first time in a year.” This positive market momentum is pushing both gold and silver stocks up today. But the digital investment community has also recognized an opportunity to help push silver miners up as risk averse investors rally around more stable buying opportunities.
What is currently happening in the silver market and what should investors be expecting as this trend progresses? Let’s take a closer look.
What’s Happening With Silver Stocks?
Despite some volatility this morning, many silver stocks are trending upward right now. MAG Silver Corp (NYSEMKT:MAG) is up about 1% as of this writing. Penny stocks like Silvercorp Metals (NYSEMKT:SVM) and Fortuna Silver Mines (NYSE:FSM) are rising 1.5% as well. So is First Majestic Silver Corp (NYSE:AG). However, former meme stock Hycroft Mining (NASDAQ:HYMC) appears to be in a race to the bottom. As of this writing, HYMC stock is down about 9% for the day.
As noted, while the silver and gold rush is being driven primarily by the “gold bug” mentality sweeping markets, social media hype is also playing a part in the momentum. #Silversqueeze has been trending on Twitter as investors tout the rising prices of silver and push for others to keep buying more. Reddit forum r/Wallstreetsilver — a spinoff of infamous r/WallStreetBets — is exploding with activity as users speculate as to what the recent acquisition of Credit Suisse (NYSE:CS) will mean for silver markets.
This isn’t the first time that retail investors have attempted to orchestrate a silver short squeeze. In 2021, they pushed hard for one following the iconic GameStop (NYSE:GME) squeeze that shook the financial world. However, this attempt didn’t garner the attention retail traders were hoping for at the time.
Today, it’s unclear how far the current squeeze in silver stocks will go.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.