GameStop shares plunge, sliver spree halted as retail investors reach impact limit

02.02.2021 - Korneychuk Evgeniya
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.

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue

Help with deposit?