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Small stock market holders want to repeat the GameStop exploit with money

2021-02-01T15:15:54.229Z


Silver hit its highest in eight years. Members of the WallStreetBets forum, who had caused a market frenzy around GameStop stock, are betting on a similar price jump.


The price of silver soared on Monday, briefly exceeding $ 30 an ounce for the first time in eight years as users of the Reddit WallStreetBets forum bet on a similar price jump as the title GameStop.

At around 12:40 a.m. Paris time, an ounce of silver soared 8.6% to 29.29 dollars, after having reached around 9:10, 30.10 dollars, an eight-year high.

Since Thursday, silver has gained 16.05%.

By way of comparison, the price of gold remains relatively stable (+ 0.88% to 1,860.06 dollars an ounce).

Read also: When small stock market holders bring speculators to their knees

The money rush started after posts on the WallStreetBets forum.

This community, which now has more than 7 million subscribers, had pushed for the mass purchase of the action of the video game store chain GameStop to oppose investment funds, resulting in losses for the investment funds which had on the contrary bet on its collapse.

Between financial opportunity and militant purchase to oppose "

hedge funds

", these individuals led a price hike which has soared 1.625% since the start of the year.

Money, “

the next GameStop

”?

While Wall Street is destabilized and the political debate rages on this duel between small investors and giant funds, forum users are now looking for "

the next GameStop

", and some have praised the merits of the gray metal.

"

It's going to be interesting to see how far individuals can push the price of silver,

" commented Hussein Sayed, analyst at FXTM, who noted, however, that "

the size of the silver market is around 1.5 trillion. dollars, more difficult to move

”than Gamestop.

At the height of the price spike last Wednesday, the video game store chain was worth $ 22.8 billion.

For the money, "

individuals try to take advantage of a peculiarity of the commodities market: its physical existence

," says Eugen Weinberg, analyst at Commerzbank, who details: "

by buying index funds (ETFs) based on the 'money

', since their issuers have to buy bullion or coins, '

you can create a supply deficit

'.

In the medium term, any prolonged rise in the price of silver will destroy physical demand

” in sectors such as jewelry or industry, where the gray metal is used as a conductor, concludes Eugen Weinberg.

Read also: The Paris Bourse rebounds sharply at the opening

But on WallStreetBets, the most popular posts in recent hours pointed out that betting on a rise in money helps to enrich banks and investment funds.

In fact, unlike GameStop stock, silver gained nearly 50% in 2020, one of the best performances of commodities, and is viewed favorably by professional investors.

Source: lefigaro

All business articles on 2021-02-01

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