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FTSE 100 Polymetal International precious metal miner was 7.5% higher in early European trade.
Courtesy of Polymetal International
Stocks exposed to silver climbed early Monday, after a rise in retail trade pushed the price of the precious metal to an eight-year high.
Silver has rallied in a matter of days as some users on the Reddit forum on WallStreetBets seem to have turned their attention to the metal, following the frenzy that put stocks as a videogames seller
GameStop
and a cinema
AMC Entertainment
surging last week.
The future of money
rose nearly 11% to $ 29,825 an ounce Monday, a short touch of $ 30.
Shares in a London registered miner
Fresnillo
it jumped nearly 17% in early European trade, the sharpest rise in pan-Europeans
Stoxx 600
index. Mexico-based miner stocks rose 76% last year as gold and silver prices rallied in 2020.
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FTSE 100 Polymetal International Precious Metals miner was 7.5% higher, and the FTSE 250 listed
Hochschild Mining
rose 13%. A number of smaller Australian miners benefited overnight, with
Argent Mines
including 60% and Research Resources rising 47%. In U.S., Canada pre-sale trade
Pan American Money
17% went up and
Wheaton precious metals
rose 12%.
Retailers may not find it as easy as GameStop when it comes to driving the price of money even higher.
Several posts on the WallStreetBets forum suggested buying money, while #silversqueeze was also waiting
Twitter.
However, many professions also argued against trade.
The
IShares Money Trust,
the world’s largest currency trading fund received more than $ 1 billion in inflows on Friday. The price of the precious metal went up again on Monday.
“We don’t know exactly how this is happening,” said Markets.com analyst Neil Wilson. “Clearing out cash-strapped hedge funds, sales-driven offer, ETFs streams driving the corporate market, smart face money running the trade, or a combination of all of that, ”He said.
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“The fact that a market as large and liquid as money is targeted by retail investors says a lot about the trend we are seeing, but despite this morning’s appearance it will be good. harder to push silver shorts because the market is so deep. and more liquid, ”Wilson said.
Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, said the rise in currencies does not look “far off,” as it is from the perspective of prices lying behind gold. She said the price of the currency could well be fixed within the $ 30-32 band. However, she warned that the rally may not last long. “For money though, the rally could be short-lived as some key members of the WallStreetBets Reddit platform have already shared the issue, and are advising against a move in cash , ”She said.
“One important thing to remember in this game is that if you lose full support, and move, it’s over. This is why, the speculative rush is a successful, but dangerous game. ”
CMC Markets analyst Michael Hewson said the focus on money could help U.S. stocks at the beginning of the week.
“With all the focus now on the precious metals market, U.S. markets are looking forward to a positive start to the week, with the hope that the move will give retail traders a focus. towards breakout money for equity investors, from all the shenanigans around such as GameStop and AMC Entertainment, and other stocks that have been severely curtailed, ”he said.