Silver Finds Some Support Even as Social Media Frenzy Cools Down

Silver prices are making a turnaround after having lost more than 8% of their value during the previous session, following a social media

Written by: Arslan Butt • Wednesday, February 3, 2021 • 1 min read

• Last updated: Wednesday, February 3, 2021

Silver Finds Some Support Even as Social Media Frenzy Cools Down

On Wednesday, silver prices are making a turnaround after having lost more than 8% of their value during the previous session, following a social media driven frenzy in buying which began earlier this week. At the time of writing, SILVER is trading at a little above $26.

On Monday, silver prices surged to above $30 an ounce – the highest level seen since February 2013, after posts on Reddit drove retail traders to purchase the precious metal and related stocks. Prices have since eased after the chatter on social media has since eased off, causing the volatility in its prices to dip as well.

According to the London Bullion Market Association, trading of silver surged three times higher than usual to cross 1 billion ounces on Monday. Meanwhile, the US Mint confirmed its inability to meet demands for gold and silver bullion coins during last year and even during January 2021.

The value of iShares Silver Trust, one of the silver ETFs recommended on Reddit, saw its value fall by more than 6% after the recent rally. However, silver received some support after Goldman Sachs Group maintained that it continues to enjoy the status of being the preferred metal despite the social media frenzy among retail traders, as its positions on the metal are backed by physical stock.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

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.