Kyle Bass catches the falling knife.
Buried at the bottom of Gregory Zuckerman’s roundup of the last mad action in the silver market is a nugget that the Hayman Capital manager bought silver early on Friday morning.
He’s probably doing pretty well. At around $37/oz. right now, it’s already up about 12% from its recent lows.
Bass’ move comes as many other hedge funds are getting out of gold and other precious metals.
George Soros has been dumping, as has John Burbank of Passport Capital.
The rest of the article is filled with good anecdotes, including one about an unemployed 31-year old man in Beacon NY who bought silver last week, on a tip that it was going to go higher, and that the proceeds would be used to fund a move to New York City.
That didn’t work out so well.
Regardless, when you see stories of average Joe investors buying up silver to fund their moving cities, the exchanges certainly look very rational in hiking margin requirements.
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