International Silver Value, Highest in 7 Years… Stock prices of related companies also surge
Increased speculation adversely affects the supply-demand disruption or risk avoidance of related industries
International silver prices surged on the 1st (local time) as individual investors in the United States, who raised GameStop stock prices, turned their attention to silver. Silver bars on display at the stock market in Frankfurt, Germany. Frankfurt/AP Yonhap News
As individual investors, who had raised some US stock prices such as GameStop, turned to silver investment, international silver prices and related companies’ stock prices surged on the 1st (local time). As a result, it is pointed out that if speculative transactions spread further, it could adversely affect the industry using silver as a raw material or silver producers using the futures market as risk dues. The US New York Merchandise Exchange reported that the silver futures price for March delivery in March recorded $29.418 per ounce, and the daily increase rate of silver futures prices reached 9.3%, the highest since 2009. The spot price of silver also jumped to the highest level since February 2013, surpassing $30 per ounce at one time. Stock prices such as’First Majestic Silver’ (22.08%) and’Hekla Mining’ (28.3%), silver producers listed on the New York Stock Exchange, also surged. ‘Ishares Silver Trust’, a representative silver-related listed index fund (ETF), also rose 8%. Silver prices rose because individual investors, who had raised some stock prices, such as GameStop, turned to silver. The talk of investing in silver began on Reddit, a discussion site where individual American investors are gathering, and is spreading all over the country, Lee said. Reddit posted an article from last weekend saying that if you invest in a silver-related listed index fund, the fund will have to purchase additional silver, which can raise the price of silver. In addition, there were some claims that the price of silver reflecting inflation should be $1,000 per ounce, not $25 per ounce. However, experts pointed out that the international silver market is large and complex incomparable to individual stocks, making it difficult for individuals to control. “The silver market is historically very volatile, so it can cause confusion,” said Tai Wong, head of precious metal derivatives trading at the investment bank BMO Capital Markets. We can’t make it like a stop stock.” As the price of silver soars, the news agency reported that vendors who supply real silver are experiencing a temporary shortage of supply all over the world, from the United States to Singapore. The news agency also pointed out that short-term investments in silver futures are usually a risk countermeasure for long-term investments, and are far from attempting to lower speculative prices such as hedge funds. Shin Ki-seop, senior reporter [email protected]