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Is silver the new GameStop? Precious metal price has risen sharply

2021-02-01T16:20:21.727Z


First, small investors struck shares in the computer game retailer GameStop. Now there are apparently concerted silver purchases. The price of the precious metal has risen sharply in the past few days.


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Gold and silver bars (symbol picture): Plus 15 percent in a few days

Photo: 

Sven Hoppe / dpa

The stock market hype about Gamestop seems to have subsided somewhat at the beginning of the week, the online broker Robinhood continues to restrict the trading of papers from the computer game dealer.

Perhaps that is one of the reasons why a commodity is now increasingly being targeted by small investors.

On Monday morning, the price for one troy ounce (31.1 grams) of silver rose above the $ 30 mark for the first time since the beginning of 2013.

The sharp rise in prices began last Thursday - and has now reached a level of around 15 percent.

As before with the shares of some ailing companies such as Gamestop or the cinema chain AMC, market observers attribute the price rally to a large extent to concerted purchases by private investors who organize themselves in Internet forums.

Driven by hobby speculators on the online platform Reddit, the shares of Gamestop, AMC and a few other companies have recently skyrocketed.

The papers from Varta also turned out to be plaything.

They had shot up by over a third at times in the previous week, but slipped again on Monday.

The silver market is bigger and more liquid

Due to the enormous price rally, some large hedge funds that had bet against Gamestop and Co. suffered high losses.

One of those that the Reddit community has focused on is Melvin Capital.

Its managed assets are said to have collapsed by more than half at times, mainly because of the failed bet against Gamestop.

After a financial injection from other hedge funds, Melvin Capital now has an estimated budget of around eight billion dollars.

It remains to be seen whether the chances of success for the Reddit community with silver are as great as with Gamestop and Co.

Howie Lee of OCBC Bank is skeptical that the silver market is much bigger and more liquid.

However, it currently looks as if the community has the momentum in the market on their side, Lee told Bloomberg news agency.

In contrast to companies such as Gamestop, silver has been in relatively high prices for a long time anyway and last year already posted a price increase of over 60 percent.

Icon: The mirror

apr / dpa

Source: spiegel

All business articles on 2021-02-01

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