When Reddit users on the WallStreetBets forum turned their attention from GameStop to silver for an attempt at a squeeze, someone remarked that gold would be next. However, one firm said the attempted silver squeeze would not roll over into the gold market.
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Q4 2020 hedge fund letters, conferences and more
Silver squeeze won't spill into gold
RBC Capital Markets strategist Christopher Louney and his team noted that the concerns about a silver squeeze automatically trigger questions about whether something similar could happen to gold because both are precious metals. However, they believe current market conditions do not support a spillover of the silver squeeze into the gold market.
Short-sellers have been feeling the pain for months, but especially over the last two weeks. In his fourth-quarter letter to investors, Maverick Capital's Lee Ainslie pointed out the unprecedented levels stock prices have reached and why short-sellers have been hurting. Q4 2020 hedge fund letters, conferences and more High market caps Ainslie noted that
