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Silver has rallied in recent trading sessions amid user attention on Reddit’s WallStreetBets forum. A worker fills a mold with molten silver at a factory in Russia in 2017.
Photo:
Andrey Rudakov / Bloomberg News
Silver prices rallied to start the trading week on Sunday, fueled by a wave of fresh enthusiasm from online traders.
Most actively traded silver futures were up 8% from Friday’s close before edging gains slightly to recently trade up 7% to $ 28.80 per troy ounce. Sunday night’s rally comes after silver prices gained more than 5% last week.
Silver rallied in recent trading sessions after users of Reddit’s WallStreetBets forum posted an article about executing a ‘short squeeze’ similar to those that fueled recent gains in Reddit. other popular actions on the Internet. Excessive attention from day traders has generated significant gains in stocks like GameStop Corp.
GME 67.87%
, captivating Wall Street as individual investors grapple with hedge funds betting on falling prices.
The attention of day traders is the latest driver for silver prices, which have traded in a range since posting a record performance in 2020, ending the year up 47%. Silver benefited from a booming precious metals rally that sent prices for everything from gold to palladium to record highs. Investors tend to buy precious metals like silver when they’re worried about holding riskier assets like stocks or corporate bonds.
Even physical metal, which is used in everything from electronics to jewelry, is starting to see a noticeable increase in demand due to the attention of Redditors. Retail silver markets, including Money Metals and APMEX Inc., posted notices on their websites on Sunday saying they were unable to process new orders before global markets opened due to unprecedented demand for metal.
Write to Sebastian Pellejero at [email protected]
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