Silver surfaces as GameStop Day traders move into other assets

The most traded silver futures traded up 2.1% to $ 25,922 a troy ounce after adding up to 6.7% earlier, while First Majestic Silver’s US-listed shares Body.

AG 21.38%

, a mining company, ended the day with 21%. IShares Silver Trust, a popular fund traded on the silver exchange, has also grown.

Silver prices have generally been down in recent weeks, remaining in a tight trading range alongside other precious metals, which was well below the multi-year highs it hit during a rally last summer. But Thursday’s gain at one point pushed the metal back near that nearly eight-year high.

The moves represent what some analysts have called an inevitable move by day traders to other asset classes, following excessive earnings from popular stocks such as GameStop Body.

GME -44.29%

and AMC Entertainment Holdings Inc.

I HAVE C -56.63%

The moves captivated Wall Street, as individual investors took on hedge funds that bet on declining stocks, and large fluctuations in the silver market could add to frantic trading.

A short press occurs when short sellers borrow an asset, sell it and try to buy again at lower prices. If the price of the asset rises sharply, short sellers are forced to buy again at higher prices to minimize losses, being removed from the market.

Analysts allegedly manipulated silver prices a few decades ago, including when regulators accused the Hunt brothers of raising prices in 1979 and 1980.

Reddit referred to the takeover of JPMorgan Chase & Co., a large precious metals trader and the largest bank in the country. He also mentioned silver stocks, such as First Majestic and ETFs, which are accessible to everyday investors. It is noteworthy that silver futures also rose on Thursday, as they are usually traded less frequently by individual investors.

Several notable bulls made of precious metals noticed the large swings. Peter Schiff, CEO of Euro Pacific Capital, said on Twitter that the switch to silver shows that Reddit traders are getting smarter because silver miners have good value.

“Silver stocks are actually cheap and represent good investment value,” he said.

Write to Amrith Ramkumar at [email protected]