Silver prices have hit an eight-year high thanks to a flood of investors spurred by a Reddit campaign similar to that which has seen US video game retailer GameStop make the headlines in recent days.
Reports are suggesting that the Redditors behind the GameStop trading war have now switched their focus to a new target – silver.
The precious metal is currently priced at its highest since 2013, according to a Financial Times report this morning.
After a 6% jump last week, this morning (Monday, 1 February 2021) has seen a further 11% jump in silver prices to a reported $30/ounce (£22/ounce).
The Redditors’ motivation is reportedly to hit banks that had bet on silver prices falling in the near future.
See below a tweet from Mohamed A El-Erian – businessman and president of Queens College, Cambridge – speculating whether Reddit users were behind the spike in the early hours of this morning.
Lots of chatter starting to accumulate on whether #silver (and, perhaps, commodities somewhat more broadly) may be the next stop in the #reddit-inspired #trade. #markets #investors #investors pic.twitter.com/Bh8qzxKCIU
— Mohamed A. El-Erian (@elerianm) February 1, 2021
Meanwhile, the Financial Times quoted Ross Norman, precious metals investor, as saying of the situation: “It’s a fools’ errand, it’s financial anarchy; somebody is going to get hurt.”