Silver prices rose on Monday, with a maximum of eight years.
The increase was possibly related to the online community of WallStreetBets on Reddit, a group of retailers that played a major role in GameStop’s rise last week.
Three experts broke it.
Jim Cramer, host of CNBC’s “Mad Money,” spoke about the complexity of investing in precious metals, which faces its own limits as a resource.
“People have to recognize that silver, even though it’s a precious metal, is used primarily for LED. It’s used a lot for cars, obviously for jewelry. When you take it out, you’re talking about a market that is a lot There are only two stocks that can be really invested … Pan American silver has 17.5 million ounces of silver, they have not been able to deliver the amount they would like to make. 5 million, which is actually very big.The other one I find is, say, worth the investment, it’s Wheaton Precious Metals.The stocks are big, they have about 120,000 ounces a year that do you intend to turn it off and then the rest too small.viouslybviate people use silver ETFs.I think it is misdirected when undertaking it? I think if you think GDP will grow, you could earn something in silver, but it’s GDP -oriented. At the same time, when used it is not ornamental. So you really need to increase business to make it invaluable. “
Mohamed El-Erian, Allianz’s chief economic adviser, linked the rise to GameStop’s short budget and how the conflict between retailers and hedge funds could develop.
“The fact that you can get people to pay attention to silver and, in the process, pay less attention to GameStop, and that’s why there’s less concern that GameStop’s scarce hedge funds will be sold, which means you can So don’t underestimate the influence in the short term.As for what’s going to happen, look, there’s a major battle between three players, not two.Three: hedge funds that are short GameStop, retail investors that are long, “And the people in the middle. And the question of where to go next? Who has the weakest hand? Who will fold first? Who won’t be able to stay in this trade? Now, historically, this has been the retail investor. But retail investors are more organized right now … If they can stay organized, they can actually force hedge funds to hedge more, but today you have the idea that they may not be able to stay organized, so we’ll see. The only thing that systematically worries is whether the in falls of the term. This is a completely different issue than if the two sides of the trade came together. “
Joe Moglia, former CEO of TD Ameritrade, noted the growth and advancement of retail investor demographics.
“Schwab, Ameritrade, E-Trade, even Robinhood has the best interest of the individual. Everything we do with Ameritrade or Schwab is with people or financial consultants working with individuals. So at the end of the day, the tools and the capacity that the individual has today, [are] far superior to what they had five years ago, and that was far superior to what they had five years before. So, if 2020 was the year in our country where we suffered a lot of disorders and everyone examined race, politics, sexuality, equality, maybe in 2021 it is about the equality of individual investors and they have the tools and the skills needed to be able to perform these operations. They have the tools. They can be taught skills. But they need a better education to understand what the disadvantage is and to understand what their risk is. “
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