From News3lv.com: Owner of Max Pawn Michael Mack says it caught him by surprise.
“Saturday when we opened, there was a small line outside waiting for us to open,” said Mack. “Then we sold all our silver, and we were like, wait a second, something is going on here.”
It’s the same story across town at Gold and Silver Pawn says general manager Andy Zimmerman.
“Last weekend essentially almost all of our silver was bought out of the store,” Zimmerman said.
A reflection of the silver market soaring to an eight-year high in this past Monday.
Experts believe it was driven, at least in part, by investors on Reddit forums, looking for the next big score after the Gamestop stock surge.
Earlier this month, several Redditors shocked the market by pushing up the value of game stop, squeezing hedge fund investors out of previously established short positions.
Yet the silver frenzy started to cool off.
“Really the market has been on a rollercoaster ride,” Zimmerman said. “We had that initial push for people to buy silver, and now it’s calmed back down to normal levels.”
Making this alleged attempt to put a similar squeeze on silver, seems more like a pinch, at least for now; says Former SEC Branch Chief Lisa Bragança.
Bragança points to the nature of the silver market.
“When you are talking about gigantic markets like the market for silver. You have to have a lot of money to be able to have an impact,” she said.
As for social media’s influence on investing, her biggest worry is that people could get badly burned by following the bandwagon of popularity with people getting the wrong message.
“The biggest concern that I have is people will want to get into the fancy sort of sexy trading and do those types of things rather than the really boring kind of diversified portfolio buy and hold that fundamentally is going to provide them with a nest egg that they can live on in retirement,” she said.
See the full story: https://news3lv.com/news/local/nevada-seeing-surge-in-demand-for-silver-sparked-by-social-media-interest-in-investing
