GameStop shares plunge, sliver spree halted as retail investors reach impact limit
GameStop shares plummeted on Tuesday and a silver buying spree led by small investors was halted as retail-driven mania showed signs of easing off.
GameStop shares in Frankfurt tumbled 30% from Monday’s close at 143 euros ($172.72) in early trade on Tuesday, following a $225 level in U.S. markets. It dropped 23% to $173 in pre-market U.S. trade.
Concurrently, spot silver prices declined more than 4% to $27.66 an ounce, posting an 8% decline from its eight-year high made on Monday.
According to analysts, the silver retreat may reflect the limitation of retail traders’ impact in a large financial market. Other analyses pointed out that purchasing silver could cost traders their grip on some stocks.
Retail buyers’ apple of the eye GameStop Corp fell 30.8% on Monday, albeit remaining around 1,000% higher than two weeks ago, before retail traders rallied and sparked a silver buying spree, resulting in big funds closing at short positions by buying shares at very high prices.