5 issues to contemplate within the retail shares buying and selling frenzy

© Reuters.

SINGAPORE (Reuters) – Silver has become the latest focus of a frenzied online movement by retailers to increase the value of assets that major fund managers have been betting against.

The populist trade rally that was organized on social media forums like Reddit’s “Wallstreetbets” has helped generate a flurry of retail money in stocks like GameStop Corp. (NYSE :), burned hedge funds that had bet against the company and disrupted broader markets.

Here are five things to see on Monday:

** SILVER – Silver prices are at nearly a six-month high, silver mining stocks are up, and coin sales websites are inundated with orders. ETF Securities’s Australian fund Silver Silver saw record inflows every day in the afternoon. IShares’ US-listed Silver Trust ETF of $ 16.5 billion, which rose 5.6% last week, could see further inflows.

** STOCKS – GameStop was up nearly 400% last week alongside Koss Corp., AMC Entertainment (NYSE 🙂 and Express. However, the strong short positions, available float, and determination of Reddit investors not to sell could mean further gains for these stocks.

** TRADING VENUES – Online broker Robinhood, one of the hottest venues on the retail frenzy, continues to have temporary buying restrictions on some securities as it tries to raise funds to clear in-house deposit requests. Interactive Brokers (NASDAQ 🙂 Group Inc announced late Saturday that it had lifted all trading restrictions on options in GameStop, AMC and others affected by recent market volatility.

** REGULATORS – US regulators are investigating both the Robinhood and Reddit forums for evidence of market manipulation and the validity of trade bans, even though both parties appear to be protected by laws and usage agreements.

** BROADER MARKETS – US stocks saw their biggest weekly decline last week, while dollar and government bond yields rose, although it’s hard to tell whether this was just the gamestop effect or a concern of a loss of economic momentum in the US US, China and Europe as coronavirus lockdowns bite.

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