WallStreetBets has silver in its sights, but here’s why this speculative rush may be ‘short-lived,’ says analyst
Evan
Stock markets are rebounding from Wall Street’s worst week since October 2020, recouping losses caused in large part by a retail trading frenzy — but signs point to more turbulent days ahead.
Last week, investors based on the Reddit group WallStreetBets drove up the prices of shares in heavily-shorted companies, notably GameStop, forcing hedge funds to cover their shorts by selling big long bets. That, in turn, contributed to a selloff that saw major indexes slide.
But the retail rush isn’t over yet. WallStreetBets has a new focus: silver SI00, 11.02%. The precious metal is now up more than 11% on Monday since Friday’s close.
In our call of the day, Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, said that silver’s rocketing rise may be more rational than some investors would have expected from an internet-based momentum play. But she also warned silver’s time in the sun may be short lived…
WallStreetBets has silver in its sights, but here’s why this speculative rush may be ‘short-lived,’ says analyst
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