Silver Price Hits Highest Level Since 2013 – Why Is The Price Of Silver Rising? | Personal finance | Finance


The price of silver today hit its highest level in eight years in February 2013. Silver mining shares jumped and bullion traders jostled as small investors piled into the metal .

It has taken gains of around 19% since last Wednesday and the price to its highest since February 2013.

“The Reddit crowd turned to a bigger whale trying to catalyze something from a short silver market squeeze,” said Kyle Rodda, an analyst at IG Markets in Melbourne. “It’s their big, bold Moby Dick moment.”

Ole Hansen, Head of Commodities Strategy at Saxo Bank, commented: “Rarely have I seen a weekend where social media has been so busy focusing on money.

“White metal is now up over 16% since last Wednesday, when the rWallStreetBets group on Reddit began focusing on silver as another potential candidate for a major short squeeze.

“The reason for this is the expected existence of a huge bullion bank short of gold and silver futures which for years, allegedly backed by central banks, has helped keep the price low. .

“This is due to the narrative that rising gold and silver prices reflect a growing lack of confidence in the financial system and in particular the dollar.

“A driving belief shared by many is that the big banks work with the Federal Reserve to maintain confidence in the dollar and the system as a whole by suppressing the price of precious metals.

“I think it’s a false narrative, but whether it’s true or not doesn’t matter in the short term.

“The belief that it is possible to push the market has taken hold and so far today the COMEX silver futures contract is trading over 10% and in doing so it has peaked last August. Momentum, especially in silver, can drive the market very far in a short period of time.”

Adrian Ash, Research Director at BullionVault, said: “We’ve seen people try to take over the silver market before, but the size and speed of the Reddit ramp is off the charts for silver.

“The Hunt billionaire brothers took a decade to build their position in the 1970s, and Warren Buffett built his mid-1990s holdings in a matter of months.

“Both helped drive the price up, but nothing like Reddit’s ‘hive mind’ has gone up 20% in silver since Wednesday night.

“The flood of new interest in silver has emptied coin shops, but there is plenty of metal in wholesale storage, and any discussion of a ‘shortage’ will in truth refer more to trucking capacity. and handling rather than physical inventory.

“Anyone rushing to buy silver today should be wary of high margins on coins and small bars, as some dealers may exploit the situation as they struggle to keep up with demand.

“Buying outside the professional market also means UK and EU investors have to pay VAT on sales. This adds an extra 20% which you won’t get back on the sale.

“Because BullionVault is a member of the Professional Wholesale Marketplace, our customers can buy and sell silver held in secure storage without incurring VAT.

“Trading on BullionVault is pretty even at the moment, as despite a record weekend for new account openings, some existing holders are very happy to turn a quick profit at these seven-year highs.

“While short-term price spikes and dips are great for trading platforms like BullionVault, we hope the long-term case for investing in precious metals will become clear in the face of the sudden influx of new buyers. money.

“The fact is though, anyone buying silver should be aware that it’s called ‘the devil’s metal’ for a reason. Volatility can be fast and violent, and it can be hard to miss the uptrend at long-term prices if you suddenly find yourself sitting on a loss.”

Tom Stelzer, investment specialist at personal finance comparison site, commented: “The price of silver has climbed above $30 for the first time since 2013 due to retail investors are trying to effect a short press on the precious metal, as they did to great success and media attention on GME stock last week.

“However, there are a few key differences between the silver market and equities, and retail investors will have their work cut out if they hope to emulate what happened with GME.

“The silver market is much more liquid than a single stock, which means retail investors will have much less impact on its price movements.

“The opportunity for a short squeeze is also much less obvious than it was with GME, and many of the same hedge funds and institutional investors that were the target of the GME short squeeze are actually holding long positions. on silver, which means they would benefit from the price of silver going up.”

Ben Stinson, e-commerce manager at Diamonds Factory, shared his perspective on what this means for consumers.

“Although the price of silver has risen, it has not reached the dizzying heights of its last peak (unlike the recent substantial growth in gold) and therefore should not yet have a huge impact on the consumer. “, did he declare.

“As far as the broader jewelry landscape goes, its price seems quite reasonable relative to gold, so that shouldn’t hopefully scare off consumers.”

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