- Title: Silver becomes the new GameStop as metal soars to eight-year high
- Date: 1st February 2021
- Summary: WASHINGTON, D.C., UNITED STATES (FEBRUARY 1, 2021) (REUTERS VIA ZOOM) (SOUNDBITE) (English) ARIAN VOJDANI, MV FINANCIAL INVESTMENT STRATEGIST, SAYING: "I think everyone is trying to parse that out - seeing if this is a longer-term trend. And is this the new way that retail participates in the market? I think that saga is to be continued. One thing you pointed out - entertainment. I'm sure many people see it that way. But for us, where, we really are students of the market, and again like I said investors, this is at the moment, noise. So you want to parse out the noise, you want to, like I said, focus on the long term. And you really want to look, when you are looking to invest, you invest in companies that you have confidence in their long-term growth prospects. So if you are a person who is just jumping into a stock because a bunch of other people or buddies of yours say, 'let's all jump in.' That might not be the best view. How many times have you done something your friend told you to do and you regretted it because you didn't do your own research. You should do your research. Think about this. These things have consequences and then move forward. Do your diligence is what I'm saying."
- Embargoed: 15th February 2021 21:32
- Keywords: Arian Vojdani GameStop Reddit commodities markets silver
- Location: WASHINGTON, DC, UNITED STATES / MEXICO CITY, MEXICO / MUNICH, GERMANY
- City: WASHINGTON, DC, UNITED STATES / MEXICO CITY, MEXICO / MUNICH, GERMANY
- Country: USA
- Topics: Commodities Markets,Economic Events,United States
- Reuters ID: LVA005DXTD7IF
- Aspect Ratio: 16:9
- Story Text:A rally in the price of silver lifted the metal to an eight-year high on Monday (February 1) but those gains faded as some investors questioned the ability of social media-driven traders to move prices in a bigger, more liquid market.
The retail traders' darling, GameStop Corp, sold off, giving up all of Friday's strong rally, but other shares caught up in the Reddit rally, including BlackBerry Ltd and AMC Entertainment Holdings Inc, extended the advance that has brought pain to short-sellers.
AMC was up 8.3% on Monday afternoon, having risen more than 500% this year. BlackBerry shares were higher in New York and Toronto trading.
As a new week of trading begins, it is unclear how long the Reddit-fueled rally in traditionally unloved stocks will last. More immediately, it could mean more market losses if hedge funds have to keep selling to meet redemptions or right their portfolios. Longer-term, they may have to shift strategies.
"For us, we really are students of the market... and this is at the moment noise," said MV Financial Investment Strategist Arian Vojdani (pronounced AreE-ahn Vosh-donnie).
"So you want to parse out the noise, focus on the long term. And you really want to look, when you are looking to invest, you invest in companies you have confidence in their long-term growth prospects."
Monday's moves were relatively small compared with swings last week when small-time traders, who organized in online forums and traded with fee-free brokers such as Robinhood, saddled several powerful hedge funds with losses on their short positions.
Spot silver was last up 6% after earlier gaining 11%.
The iShares Silver Trust ETF, the largest silver-backed ETF, was up 7% in U.S. trading. Friday's retail inflows into the ETF totalled around $950 million, equivalent to two weeks of demand, in a total annual silver market of $25 billion, according to BMO Capital Markets.
"The silver thing is... I'd say it's all very flimsy," added Vojdani. "You might as well be going to Vegas and having a bet. You need to be careful if you are someone who is actually looking and worried about their dollars."
(Production: Angela Moore) - Copyright Holder: REUTERS
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