Top Stories This Week: WallStreetBets Takes on Silver, Price Rises

It was another week of mostly downward movement for the gold price, which was trading at around US$1,850 per ounce at the time of writing. 

The yellow metal has lost momentum since the start of the year, and this week Will Rhind of GraniteShares gave me two reasons he thinks it’s stuck below US$1,900.

In his opinion, it’s partially because further US stimulus measures have not yet solidified; secondly, Will believes gold has taken a backseat amid the current “fever” around risky stock market investing.

“Gold rallied up to US$1,950 roughly on the back of the election results, and the promise or the hope of more stimulus, but it hasn’t actually happened as of yet” — Will Rhind, GraniteShares

Of course, the real story this week has been what’s going on with GameStop (NYSE:GME), a company at the center of the type of risky stock market investing mentioned by Will.

This is a very interesting and very quickly evolving situation, so we’re just going to cover the basics here — put simply, the company’s share price has seen a massive uptick this week, spurred by buying activity from retail investors on the Reddit forum WallStreetBets. Their attention has created major losses for Wall Street short sellers who had expected GameStop’s share price to fall.

I had the chance to speak with Gareth Soloway of InTheMoneyStocks.com about this situation, and I recommend that you check out that interview for a full look at what’s going on. One key topic that Gareth touched on was the connection between GameStop and silver — WallStreetBets members are now on the hunt for opportunities outside GameStop, and silver has caught their eye.

The white metal was trading higher on Thursday (January 28), reaching nearly US$27 per ounce, and miners including First Majestic Silver (TSX:FR,NYSE:AG) were making moves.

Will the next short squeeze from WallStreetBets be in silver? We asked our Twitter followers what they think, and by the time the poll closed, it was one of our most popular questions to date — “yes” was the overwhelming answer, with about 75 percent of participants giving that response.

We’ll be asking another question on Twitter next week, so make sure to follow us @INN_Resource or follow me @Charlotte_McL to share your thoughts.

Finally, in the psychedelics space this week, Horizons ETFs Management (Canada) launched the very first psychedelics ETF. It is now trading on the NEO Exchange under the symbol PSYK.

The ETF offers exposure to a basket of companies involved in the space — its focus is mainly on smaller players, but it also includes major pharma companies that are conducting psychedelics research.

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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.