After a few days of massively inflated silver prices thanks to an online army of small investor Redditors, the market has somewhat cooled off again.
Trying to replicate the chaos caused by their investment in video game retailer GameStop, thousands of Reddit users turned their attention to silver late last week.
Silver prices rose 6% last week, while the frenzy peaked on Monday (1 February, 2021) morning, with prices rising 11% in the space of several hours.
Prices peaked at around $30/ounce (£22/ounce), the high water mark for the last eight years.
Comments in Reddit forums suggested that the buyers’ goal was to hit banks who had bet on the silver price falling – an idea that analysts are now claiming was misguided, with banks possibly even benefitting.
Silver prices then fell 8%yesterday, the Financial Times reported, signalling a swift return to pre-spike levels.
Meanwhile, some reports suggest that small investors are now turning their attention to gold and silver coins, rather than bullion.
Read more about Monday’s silver boom below: