Silver prices fall against the backdrop of controversy between small carriers

Posted on Feb 2, 2019 2021 at 13:56Updated Feb 2, 2019 2021 at 15:54

After the euphoria, the hangover. The prices of silver which had jumped under the effect of massive purchases of private investors followers of the WallStreetBets forum, lost height on Tuesday. The ounce fell 5.4% to 27.50 dollars. This movement comes just after the American metals market, Comex, raised its requirements in terms of regulatory margins. When volatility rises, investors must indeed increase the capital cushion intended to absorb potential losses.

Individuals have clearly understood that the silver market is much stronger than some stocks Commerzbank’s Eugen Weinberg comments in a note. Its size and liquidity make any speculative assault more delicate. The analyst also notes the lack of coordination and consultation of stock marketers. “Many individuals had doubts about the objective of this assault, pointing out rightly that the ” bad guys ” hedge funds bet more on rising prices than falling prices.

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