This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.bbc.co.uk/news/business-55882758
The article has changed 20 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Silver surges as Reddit army turns to commodities | Silver surges as Reddit army turns to commodities |
| (about 5 hours later) | |
| Silver prices leapt to a five-month high on Monday on social media calls to buy the metal and emulate the frenzy that drove up GameStop shares. | Silver prices leapt to a five-month high on Monday on social media calls to buy the metal and emulate the frenzy that drove up GameStop shares. |
| Shares in a handful of smaller Australian mining firms surged as small-time traders bought en masse. | Shares in a handful of smaller Australian mining firms surged as small-time traders bought en masse. |
| Argent Minerals, Boab Metals and Investigator Resources leapt more than 15%. | Argent Minerals, Boab Metals and Investigator Resources leapt more than 15%. |
| Coin-selling websites also reported unprecedented demand and flagged delays in delivering silver. | Coin-selling websites also reported unprecedented demand and flagged delays in delivering silver. |
| UK trading platform IG stops new GameStop trades | UK trading platform IG stops new GameStop trades |
| GameStop: Who is winning the market battle? | GameStop: Who is winning the market battle? |
| Global watchdogs on alert as GameStop frenzy grows | Global watchdogs on alert as GameStop frenzy grows |
| Silver rose as much as 7% to $28.99 an ounce, its highest value since mid-August. | Silver rose as much as 7% to $28.99 an ounce, its highest value since mid-August. |
| The moves are the latest example of small-time traders buying stocks and other assets that large Wall Street funds bet against, resulting in large losses for major investors. | The moves are the latest example of small-time traders buying stocks and other assets that large Wall Street funds bet against, resulting in large losses for major investors. |
| Some users in the Reddit forum Wallstreetbets argued that silver is a heavily manipulated market, and a surge in the silver price could hurt large Wall Street players. | Some users in the Reddit forum Wallstreetbets argued that silver is a heavily manipulated market, and a surge in the silver price could hurt large Wall Street players. |
| "Think about the Gainz. If you don't care about the gains, think about the banks like JP MORGAN you'd be destroying along the way," said Reddit user RocketBoomGo, in a widely circulated post. | "Think about the Gainz. If you don't care about the gains, think about the banks like JP MORGAN you'd be destroying along the way," said Reddit user RocketBoomGo, in a widely circulated post. |
| Some members of the forum have argued against the move, suggesting it would benefit the same funds that stood to benefit from betting against GameStop. | |
| The recent GameStop surge, which was also fuelled by retail investors, was also seen as a revolt against large institutional investors. | The recent GameStop surge, which was also fuelled by retail investors, was also seen as a revolt against large institutional investors. |
| Unlike GameStop, which was a loss-making gaming retailer that many investment funds had bet against, Silver has seen strong growth over the past year. | Unlike GameStop, which was a loss-making gaming retailer that many investment funds had bet against, Silver has seen strong growth over the past year. |
| WATCH: What's been going on at GameStop? | WATCH: What's been going on at GameStop? |
| "There is this curious situation now where the Reddit crowd has turned its sights on a bigger whale in terms of trying to catalyse something of a short squeeze in the silver market," said Kyle Rodda, an analyst at brokerage IG Markets in Melbourne. | "There is this curious situation now where the Reddit crowd has turned its sights on a bigger whale in terms of trying to catalyse something of a short squeeze in the silver market," said Kyle Rodda, an analyst at brokerage IG Markets in Melbourne. |
| "There's a lot of commentary on these platforms to pile in to the miners." | "There's a lot of commentary on these platforms to pile in to the miners." |
| Silver prices are up 15% since Wednesday's close, around the time when messages began circulating on forums such as Reddit encouraging users to buy the metal and drive up prices. | Silver prices are up 15% since Wednesday's close, around the time when messages began circulating on forums such as Reddit encouraging users to buy the metal and drive up prices. |
| Massive losses for Melvin | Massive losses for Melvin |
| The latest surge comes as the damage to one Wall Street firm becomes clearer. | The latest surge comes as the damage to one Wall Street firm becomes clearer. |
| Hedge fund Melvin Capital lost 53% in January, according to media reports. | Hedge fund Melvin Capital lost 53% in January, according to media reports. |
| However, the firm received commitments for fresh cash from investors in the last days of January, and ended the month with $8bn (£5.8bn) in assets after having started the year with roughly $12.5bn, according to Reuters. | However, the firm received commitments for fresh cash from investors in the last days of January, and ended the month with $8bn (£5.8bn) in assets after having started the year with roughly $12.5bn, according to Reuters. |
| The firm had bet that ailing video game retailer GameStop's stock, which traded at less than $5 five months ago, would fall further. | The firm had bet that ailing video game retailer GameStop's stock, which traded at less than $5 five months ago, would fall further. |
| But retail investors, comparing notes on social media platform Reddit, bought the stock and sent it higher to close at $325 on Friday. | But retail investors, comparing notes on social media platform Reddit, bought the stock and sent it higher to close at $325 on Friday. |