Photo = Reuters Yonhap News
International silver prices and stock prices of silver producers are on the rise. This is the influence of the US online community Reddit, which recently led individual investors’ attacks on short-selling hedge funds, pointing silver as the next target.
According to Bloomberg News on the 1st (local time), silver near-month products in the COMEX commodity market on the previous day were traded at $29.2 per Troion (about 31.1 g). It is about 8% higher than the previous trading day, the highest since September last year. On the 1st, silver spot traded at $28.99 per troy ounce, a 7.4% increase from the previous trading day, the highest since mid-August last year.
On this day, in Australia, a major silver producer, the stock prices of silver mine-related companies surged. In most cases, the buying trend was concentrated in’coin stock’ companies that do not exceed 1 Australian dollar per share. Intraday Agent Minerals’ share price soared 59.6%, and Investigator’s share price soared 47.4%. Boab Metals’ share price rose 18.6%.
Silver prices have risen by about 14% over the past seven days. It was on the 27th of last month that the uptrend began in earnest. According to Reuters, several articles were posted on the Reddit stock discussion room, Wall Street Betz, that individual investors should buy silver as a group to fight the established financial sector. It is argued that the recent’Game Stop Short Sale Daejeon’ should also be expanded to the product market.
They argue that established financial institutions such as the government and banks are suppressing the price by manipulating the silver market to hide the inflation situation. One individual investor told Wall Street Betz, “The price of silver considering inflation should be $1,000 per Troounce.” I can” he posted.
Another investor said, “A large investment in silver can hurt not only a few hedge funds, but also some of the world’s leading banks.” It is a so-called’Silver Quiz’ movement that can give’Short Squeeze’ to Eun.
Since then, on Reddit and Twitter, articles with the Silver Squeeze hashtag have poured out. “Individual investors, mainly online, are trying to surge silver prices in the short term,” said Kyle Roda, an analyst at IG Market, an Australian-based securities firm. “We are targeting a larger market than individual stocks.”
On-line sites for precious metals were also hit by orders to buy silver. US APMEX, one of the world’s largest online retail platforms for precious metals, posted an announcement on the 31st of last month that “the global silver market cannot accept additional orders until the global silver market opens due to unprecedented demand for silver products.”
Experts believe that it is not easy for Reddit individual investors to succeed. Unlike individual stocks such as GameStop, the silver commodity market is highly volatile and there are many companies that are intertwined. Silver demand for general industries such as solar cell devices accounts for about 55% of the total demand. It is also a burden that Eun rose 47% last year alone. Goldman Sachs set a silver target price of $30 per Troion on the 27th of last month. According to this analysis, the upside potential in the current price is not great.
“The commodity market is very different from the stock market,” said Ryan Fitzmaurice, a product strategist at Labobank.
Reporter Sun Han-gyeol [email protected]
Ⓒ Hankyung.com prohibits unauthorized reproduction and redistribution