Silver Price Surges Over 9% as Reddit Investing Community Shifts Focus to Precious Metals

By Luigi Wewege Monday, February 1, 2021

The Reddit mania seems to be spilling over to the precious metals market, judging by today’s price action. The silver price is up more than 9% and trading at the highest levels recorded since 2013.

Silver bullion bars on top of a rising chart.

WSB Strikes Again

After targeting stocks with extreme selling interest, retail investors centered around Reddit’s “WallStreetBets” forum have now set their focus on silver and certain cryptocurrencies. The silver price has soared to exceed the $30 mark for the first time in nearly eight years, after adding over 5.7% in the last week.

As there are no major fundamental catalysts that can explain the sudden move in the silver price, the “#silversqueeze” trending hashtag helps us to better understand why the silver price has screamed higher.

"The #silversqueeze is a rage against the machine," Co-Founder of cryptocurrency exchange Gemini, Tyler Winklevoss, tweeted before adding that “If silver market is proven to be fraudulent, you better believe gold market will be next.”

Market analysts are looking a bit perplexed as to why Reddit investors changed their strategy from targeting short-selling hedge funds to buying silver. As a result, the silver price gapped higher at the Monday open.

"It is a dramatically different market setup. I am not sure how well this new Reddit trading strategy will fare in futures markets and especially the notoriously volatile commodity markets,” Ryan Fitzmaurice, a commodities strategist at Rabobank, said.

In the meantime, bullion brokers are struggling to cope with an uptick in the demand for metal. Ken Lewis, the CEO of the US-based bullion-broking company APMEX, says his business has been forced to stop selling silver bars and coins over the weekend due to a “dramatic” shift in silver demand.

“Once markets closed on Friday, we saw demand hit as much as six times a typical business day and more than 12 times a normal weekend day. Combined with the extremely high demand levels, we are also seeing a surge in new customers. On Saturday alone, we added as many new customers as we usually add in a week,” he said in a blog post on the company’s website.

Lewis adds that a “difficult decision” to stop the sale of silver on the company’s website is an “unprecedented” event in the history of the business.


Silver price is trading more than 9% higher today to continue its impressive bullish run as the Reddit investing community turns its sight towards the cryptocurrency market and precious metals.

About the Author

Headshot for author Luigi Wewege

Luigi Wewege is the Senior Vice President, and Head of Private Banking at Caye International Bank. Outside of the bank, he serves as an Instructor at the FinTech School which provides online training courses on the latest technological and innovation developments within the financial services industry. Luigi is also the published author of: The Digital Banking Revolution.

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