Silver price is latest market hit by Reddit day-trader frenzy
Thursday, January 28, 2021 - 10:17:10 PM
Mining.com

Spot silver soared as much as 6.8%, the biggest jump since August. IShares Silver Trust, the biggest exchange-traded instrument backed by the metal, rose as much as 7.2%, the biggest intraday gain since August.

“The GameStop/AMC/Reddit mania is spilling over to silver and gold is getting a lift. The economic data this morning have become a moot point,” Bob Haberkorn, senior market strategist at RJO Futures said by phone. “This isn’t predicated on any global events, it’s just people on a message board putting all their guns towards the precious metals markets.”

First Majestic Silver Corp., which was cited as a short-squeeze target, soared as much as 39% in New York on Thursday amid a frenzy of retail trading fueled by Internet chat rooms.

Options markets were bid up in the frenzy, with brokers seeing wide bid/ask spreads on the ETF and Comex contracts.

Investors are looking at buying silver options for far-out months, according to Haberkorn. “You see some incredible price increases in options that normally wouldn’t be worth anything at this point,” he said.


http://www.miningnewspro.com/en/News/610245/Silver price is latest market hit by Reddit day-trader frenzy
Close   Print