Silver Climbs Close to Six-Month Highs – Reddit Posts Drive Surge

Silver prices have surged by over 7% and are trading close to the highest level seen in six months after posts circulating on Reddit urged

Arslan Butt•Monday, February 1, 2021•1 min read

Silver Climbs Close to Six-Month Highs - Reddit Posts Drive Surge

Early on Monday, silver prices have surged by over 7% and are trading close to the highest level seen in six months after posts circulating on Reddit urged retail investors to buy into the commodity’s mining stocks and ETFs. At the time of writing, SILVER is trading at a little above $28.

The precious metal has strengthened by almost 15% since Thursday after users’ posts on Reddit called for buying of shares of companies that mine silver and for increased investments into iShares Silver Trust – an ETF for the commodity. The frenzy is something similar to what global financial markets experienced last week with trading in GameStop.

The ratio of gold to silver – a measure of how many ounces of silver are needed to purchase an ounce of gold, has fallen to an almost seven-year low on the back of this increased interest in trading in the commodity. The ratio is now sitting around the 65 level, at present.

The precious metal also finds support from a possible delay and reduction in the size of the next round of fiscal stimulus measures in the US. According to latest news reports, a group of Republican senators have asked President Biden to reduce the scope of his proposal from $1.9 trillion to around $600 billion.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.