Photographer: Luke Sharrett / Bloomberg
Photographer: Luke Sharrett / Bloomberg
Silver increased during the week’s openness, with futures contracts within minutes up to $ 29 per ounce as the Reddit-inspired frenzy pushed the stock markets into commodities last week.
The extraordinary increase came after retail sites were overwhelmed with demand for pubs and coins this weekend. Outlets, including Apmex, the Walmart of precious metal products in North America, said they could not process orders before the Asian markets opened due to unprecedented consumption.
“It was tough – during the weekend we started opening accounts within a few days in about three weeks,” said John Feeney, manager of business development at Guardian Vaults in Sydney. “Silver rose in public this morning when all the volume of the weekend came on the market.”
Silver futures contracts almost ended Last week 6% higher after a jump on Thursday and Friday amid Reddit enthusiasm from hordes of retail investors. Unlike the beaten stocks targeted in the stock market, including GameStop Corp., silver, has performed well over the past year, rising more than 50% as the dollar has fallen and expectations were that the pandemic would recover worldwide.
Most active futures contracts rose to 8.7% at $ 29.25 per ounce on the Comex, the highest price since September, and traded at $ 28,855 in Singapore at 7:51 p.m. Gold futures rose 1.1% to hit $ 1,870 per ounce
“As many retail investors are interested in and aware of this story – and that they are likely to be motivated and committed – the price could rise further,” said Nicholas Frappell, global general manager of ABC Bullion in Sydney.
Comments on silver appeared on the Reddit forum r / wallstreetbets last week. People started egging each other on in the iShares Silver Trust, the metal’s largest exchange-traded product, says banks keep silver prices artificially low, hiding a real shortage of stocks.
Some of the biggest Wall Street banks have been positive about the prospect of silver in recent months amid a major boom in commodities. Goldman Sachs Group Inc. described it as the ‘preferred precious metal’, according to a January 27 note with a price target of $ 30 per ounce.
In addition, since mid-2019, money managers have had a net long position on silver, according to futures and options contracts of the Commodity Futures Trading Commission. In the week to 26 January, the net bullish bets on the metal were at a three-week high.
Silver is usually more volatile than its much more expensive sister metal, gold, which often places sharp price changes. In addition to its role as a speculative asset and store of value, it has industrial uses, including in solar panels.
– With help from Jake Lloyd-Smith, Matt Turner, Yvonne Yue Li, Ranjeetha Pakiam and James Thornhill