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

Gold spot prices also saw a similar trend. Gold started on Thursday at £1,342.88 an ounce before hitting its highest price of £1,363.70 on Monday and then pulling back down again to £1,345.22 on Tuesday.

 

Conclusion

One thing that all of this does show, is that Reddit’s investors have succeeded in driving up an impressive move in prices through collective action. The financial elites are being taken on by individual investors, many of whom have argued that the price has been suppressed by powerful forces for a long time. Could this happen again? Only time will tell.

 

Read more in ‘Are Precious Metal Prices Being Manipulated During the Coronavirus Pandemic?’ here.

 

Silver Prices Soar to 8 Year Highs Becoming the New GameStop Investment2

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