Silver Price Soars as Reddit Mania Spreads to Precious Metals Market

The demand for silver coins and bars is also rising since the last few months

The Reddit Mania has spread to the precious metals market, and as a result, the silver price has soared recently. This change comes a few days after the Reddit mania impacted the prices of Dogecoin and GameStop. It is clear that this time, the goal is to make silver the next big thing.

It seems that the goal is somewhat achieved as silver price has increased to a 5-month high of USD 29 (About AUD 38). Silver saw a gain of +15% since mid-last week as retail investors wanted to earn profits.

Though the silver price is increasing rapidly due to Reddit mania, Bloomberg has shared that silver has been performing well over the past year as US dollar fell. Its soaring prices were also backed by the expectations for global recovery from the coronavirus pandemic. The demand for silver coins and bars is also rising since the last few months.

The original thread by r/WallStreetBets that is entitled Silver Biggest Short Squeeze In The World $SLV $25 To $1,000, reads “The Silver Bullion Market is one of the most manipulated on Earth. Any short squeeze in silver paper shorts would be EPIC [sic.]. We know a billion banks are manipulating gold and silver to cover real inflation. All of the best mines for silver have already been depleted in recent years. There is a severe supply shortage developing. At the same time, demand is skyrocketing. Solar panels, electric cars, electronics, and many other products need more silver than ever.”

It continued “[Too Long, Didn’t Read] – Corner the market. Gold Ventures thinks it’s possible to squeeze $SLV – FUCK, AFTER SEEING $AG AND $GME, EVEN I THINK WE CAN DO IT. BUY $SLV GO ALL IN. THE GAINZ WILL BE UNLIMITED. DEMAND PHYSICAL IF YOU CAN. FUCK THE BANKS [sic.].”

The rise in silver price made leading retail sites post warnings regarding heavy demand over the weekend. APMEX wrote a notice on the website that reads “Due to unprecedented demand on physical silver products, we are unable to accept any additional orders on a large number of products, until global markets open Sunday evening.”

SD Bullion also posted a warning regarding soaring silver price. It read “due to unprecedented silver demand” the company will not accept orders until Sunday evening. Several other notices were posted by other reputed websites like Money Metals after the surge in the silver price. It will be interesting to see how far Reddit mania will spread and will other precious metals like gold is also targeted or not.