Silver prices have shot up to an eight-year high of almost $US30 ($39.35) after Reddit investors moved from GameStop shares to purchasing the precious metal.
Australian silver company Investigator Resources saw its stock prices rise by 47.44 per cent to $0.12 per share at close of business Australian time yesterday.
Thomson Resources closed at $0.22 per share, after reaching a high of $0.26 earlier yesterday afternoon while Manuka Resources remained at a flat $0.50 per share on Monday.
United States precious metal retailer SD Bullion recorded asking prices of $US29.41 but as chief executive officer Tyler Wall explained, physical prices for its silver are at least 30 per cent higher, due to unprecedented demand.
“We sold through 10 times more on our normal weekend volume into the first 24 hours of trading over the weekend,” Wall said.
“Retailers in the United States had to shut down our websites on Saturday night and the early hours of Sunday morning in order to hedge our market position.
“Physical silver is almost gone in terms of live inventory, there are still a few items left for people to buy but the price you pay over spot to get actual physical silver in your hands is skyrocketing.”
Wall has also observed that very few customers are selling silver back into the market, with Reddit investors on a buying frenzy.
In addition to Reddit investors’ strategy to attack silver, Wall also attributes in rise in popularity to the inauguration of new President Joe Biden and his re-entry into the Paris Climate Agreement.
“When Biden became President I’m surprised it too a lot longer and that silver didn’t rally more with his green energy policy,” Wall said.
“Silver is a much smaller market (than gold) in terms of ounces above ground but it has industrial uses that are very strong so the initial demand from the Reddit community was to attack silver.”
The Reddit community targeted United States video games retailer GameStop’s shares during January, causing the company’s stock to rise by a whopping 1700 per cent since December.