Thursday, September 28, 2023

Latest market news: GameStop shares set to rise sharply after trading restrictions are lifted

Must read


Henry sanderson

The price of silver rose 4 percent on Friday, a day after a user on Reddit’s WallStreetBets forum urged people to buy shares in a leading silver exchange-traded fund to create a “Short squeeze” on the market.

The price of silver rose to $ 27.4 an ounce in the morning session, after shares of iShares Silver Trust rose 6% on Thursday.

User u / TheHappyHawaiian said on Thursday that buying ETF shares would “force the physical delivery of money” into its coffers, causing “short pressure” on the market, pushing the price higher. money. This would pose problems for traders who were strapped for cash in the futures markets, they said.

“The people who are selling money naked through the futures markets are a few big banks and charging them dearly for their over-leveraged naked shorts would be amazing,” the user said.

Silver jumped 7% on Thursday, as the price of the iShares Silver Trust ended the day $ 1 above its net asset value due to the influx of purchases.

Commerzbank analysts, however, said the impact on silver would likely be mitigated, given the large size of silver futures markets.

“We are convinced that the influence of retail investors on silver will not last that long and that ultimately industrial and institutional demand will be the key driver in the longer term,” they said. “That said, the latest price hikes should prompt financial market participants to focus on precious metals again.”

Shares of silver miners also rallied on the news Thursday with New York-listed First Majestic Silver up 22%. The miner was targeted by a series of Reddit users on Thursday calling for a “short squeeze” against those betting on a drop in the stock.


- Advertisement -spot_img

More articles


Please enter your comment!
Please enter your name here

- Advertisement -spot_img

Latest article