Silver, GameStop Sink as Investor Frenzy Shows Signs of Cooling
- HSBC says silver will remain volatile, warning ‘buyer beware’
- Metal had surged as speculative buying spread beyond stocks
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The investor frenzy that stoked wild gains in everything from GameStop Corp. to silver is showing signs of fatigue.
The metal dropped more than 5% on the Comex Tuesday, sinking from an eight-year high after margin requirements were raised and analysts cautioned against chasing the rally. GameStop, whose Reddit-inspired surge set off a flurry of buying in other heavily shorted stocks, sank 16% in after-hours U.S. trading on Monday, extending a 31% plunge during the regular session.