Silver swept up by GameStop retail frenzy, prices soar

SINGAPORE (Reuters) – Silver broke above $30 an ounce for the first time since 2013 on Monday as an army of retail traders stormed into the metal after betting billions of dollars on stocks last week, triggering risks of a multi-asset melt-up in global markets. Organised in online forums and traded with fee-free brokers such as Robinhood, small-time investors have driven a 1,600% rally in the shares of video game retailer GameStop, scooping up assets big fund managers had bet against. The phenomenon spilled over into silver late last week. Spot silver leapt more than 11% in London to $30.03 an ounce and was on track for its biggest one-day rise since 2008, taking gains to about 19% since last Wednesday. [GOL/] The jump set off a rally in silver-mining stocks from Sydney to London, with Fresnillo shares soaring 20.5% to top the UK blue-chip FTSE 100 index. The action in silver, following thousands of Reddit posts and hundreds of YouTube videos suggests that a rise in the physical price could hurt large investors with bearish bets, also marks a foray into a much bigger and more liquid market than individual stocks. “I would look at the silver rally the… continue reading

Continue reading Silver swept up by GameStop retail frenzy, prices soar. This article appeared first on CTRM Center.

Source: CTRM Center

Related Posts

Leave a reply