No silver lining for investors as prices soar

World

No silver lining for investors as prices soar

Silver is swept up in GameStop retail frenzy as price leaps more than 11% to highest since 2013

Tom Westbrook

Silver prices surged to an eight-year high on Monday, silver-mining stocks leapt and bullion dealers were scrambling as small-time investors piled in to the metal, the latest target of a retail-trading frenzy that has set financial markets on edge.

Organised in online forums and traded with fee-free brokers, such as Robinhood, the phenomenon has driven a 1,500% rally in the shares of video game retailer GameStop as the crowd scoops up assets big fund managers had bet against.

The action in silver, after thousands of Reddit posts and hundreds of YouTube videos suggesting a rise in the physical price could again hurt large investors with bets on it falling, marks a foray into a much bigger and more liquid market...

This article is free to read if you register or sign in.

Sunday Times Daily

If you have already registered or subscribed, please sign in to continue.

Questions or problems?
Email helpdesk@timeslive.co.za or call 0860 52 52 00.