Silver prices have hit an eight-year high after small-time traders swapped tips on a large Reddit forum to collectively drive up prices.
A post appeared on Reddit’s ‘WallStreetBets forum’ encouraging traders to invest into BlackRock Inc.’s iShares Silver Trust. This, along with a huge increase in Silver Electronic Traded Funds (ETFs), silver mining companies, and a big increase for physical silver demand, made the price surge to eight-year highs. The sharp run-up in prices and a massive surge in demand for bullion coins showed the increased interest in the precious metal, particularly among young investors.
These same investors piled into shares in the games retailer GameStop a week prior, causing their stock to jump 700%.
Affect on Silver Prices
Silver spot jumped from £18.39 on Thursday to £21.48 an ounce on Monday, a price increase of £3.09 an ounce. Silver pulled back shortly after the initial rise with no major short position to target.
Affect on Gold Prices