Silver prices, miners surge as retail buyers pile in By Reuters

February 1, 2021 0 By boss


© Reuters. FILE PHOTO: Ingots of 99.99 percent pure silver are seen at the Krastsvetmet non-ferrous metals plant in the Siberian city of Krasnoyarsk

SINGAPORE (Reuters) – Silver prices leapt to a five-month high on Monday and small silver miners listed in Australia surged after social media calls to buy the metal and emulate the frenzy that has driven GameStop (NYSE:) shares up 1,500% in two weeks.

Spot silver rose as much as 7.4% to $28.99 an ounce, the highest since mid-August. Shares in a handful of mining firms such as Argent Minerals, Boab Metals and Investigator Resources leapt more than 15%.

Coin-selling websites also reported unprecedented demand and flagged delays in delivering bullion. The moves are the latest example of small-time traders buying en masse, particularly of stocks and other assets that were heavily bet against, resulting in large losses for major investors. [MKTS/GLOB]

“There is this curious situation now where the Reddit crowd has turned its sights on a bigger whale in terms of trying to catalyse something of a short squeeze in the silver market,” said Kyle Rodda, an analyst at brokerage IG Markets in Melbourne.

“The most important factor here is that silver is heavily shorted, the paper market is much, much larger than the underlying commodity can justify,” he said.

“There’s a lot of commentary on these platforms to pile in to the miners.”

Silver prices are up 15% since Wednesday’s close, around when messages began circulating on forums such as Reddit encouraging users to buy the metal and drive up prices.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Source link