Silver prices hit an eight-year high on Monday, as the precious metal became the latest asset to be the subject of a trading frenzy triggered by posts on the social network Reddit.
Spot silver hit $ 30 an ounce for the first time since 2013, rising to 10% in the early afternoon, before falling back to around $ 28.82, a gain of over 7 % over the day.
Since the middle of last week, posts on Reddit and YouTube videos have encouraged amateur traders to buy silver, in part because they believed the increase in its physical price could hurt big investors who had bet on paper that he would fall.
The same logic was behind an explosion in the share price of US retailer GameStop, when Redditors pushed up the share price that hedge funds had bet against. S3 Partners, a data provider, said short sellers – investors who had bet on falling stock prices – had lost at least $ 15.3 billion in trade on GameStop since the start of the season. year. Short sellers had significantly reduced the size of bets on the fall in the stock’s value on Monday, S3 reported.