WallStreetBets has silver in its sights, but here’s why this speculative rush may be ‘short-lived,’ says analyst
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…
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