Activists, small investors, bet on the precious metal. Their gamble is not without risks.
The price of silver briefly exceeded $30 an ounce for the first time in eight years. This surge was triggered by users of the Reddit WallStreetBets forum, who have just played a nasty trick on large investment funds: while the latter had bet on the collapse of the stock of GameStop, an American chain of video game stores, these militant small investors bought it en masse, increasing its odds by 1,625%. A duel à la David and Goliath that totally destabilized Wall Street.
With 7 million subscribers, the WallStreetBets community is now looking for a new ground on which to challenge the “hedge funds”. Some of its subscribers have praised the gray metal, which has propelled its price in recent days. “It’s going to be interesting to see how far individuals can push the price of money,” said Hussein Sayed, analyst at FXTM.
Beware of the “supply shortage”.
Unlike actions, metal has a physical existence. Too much demand can therefore “create a supply deficit,” notes Eugen Weinberg, an analyst at Commerzbank. This will affect sectors such as jewelry and industry, where money is used as a driver.
But the game is not over yet: on Reddit, there are already voices saying that the increase in money will benefit the giant investment funds. This could cause the price of metal to fall as quickly as it has risen.
Disclaimer: All articles published here are for information purposes only. They can in no way influence your investment decision. Only you can decide on the best possible investment for your money, and whatever decision you make will involve risk. The information or data included here may already be out of date and should be verified from another source, in case you decide to act.
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