GameStop-like retail frenzy lifts silver price to five-month high

GameStop-like retail frenzy lifts silver price to five-month high

"IT'S A TRAP!" one Redditor warned, though no one really seemed certain.

Robinhood, the free-trading app, had come under fire after it restricted trades in GameStop and other stocks, reported CNN.

Hussein Sayed, chief market strategist at FXTM, said "influencing the price of silver will not be as easy" as it was with GameStop owing to the metal's total market value of around $1.5 trillion.

The CBOE volatility index slipped about 2 points on Monday after hitting its highest since October as a surge in GameStop Corp (NYSE:) and AMC Entertainment (NYSE:) Holdings and others burnt hedge funds who had bet against the company and roiled the broader market.

They initially targeted stocks in the U.S. that hedge funds had bet against by so-called shorting.

Some users in the Reddit forums WallStreetBets and WallStreetSilver argued that silver is a heavily manipulated market, and a surge in the silver price could hurt large financial services companies. But the stock price, as it has been for more than a week, is tremendously volatile.

U.S. factories grew at a slower pace in January
A respondent in miscellaneous manufacturing said a rise in the number of employees with COVID has negatively impacted production. That raises hopes for a rebound in hiring this month after the economy shed jobs in December for the first time in eight months.

The hedge funds had been shorting GameStop's shares, betting that its stock was doomed to further decline, these amateur investors led by the Reddit page began pushing the other way, buying shares and stock options.

Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. "It's hard to justify the prices that we've been seeing for the company, based on the company's fundamentals". The price was up sharply before the opening bell Monday.

Webull's app was installed about 100,000 times worldwide on January 28 from the App Store and Google Play, a 270% week-over-week increase, according to data provided by market analytics firm SensorTower.

Examples of this include the GameStop and AMC stock situation, spread of misinformation online about unfounded election fraud allegations, and Trump supports storming the U.S. Capitol following tweets made by the former President. "It's all about momentum; if the futures market also gets behind this move, they could add fuel to the fire, so the NY open would be very interesting", said Ross Norman, an independent analyst.

The Silver Mountain, a Netherlands-based bullion dealer, said on its website, said that, "Due to extreme market volatility we can not accept any new orders at this moment", adding it hoped to reopen by the afternoon.

Related Articles