Silver demand is surging, with solar power alone expected to account for 23% of the 2024 supply. But that narrative isn’t as straightforward as the one surrounding GameStop, one of the most-shorted stocks in the U.S. before tickmill review it began surging this month. China Silver Group Ltd. rose as much as 63% in Hong Kong, while Australia’s Silver Mines Ltd. gained as much as 49%.
Silver was a target market of Reddit retail traders in 2021 amid a buying stampede in GameStop Corp. and other small-cap stocks that captivated the financial world. Silver’s rally comes amid surging investor interest, an increasingly supportive macroeconomic backdrop and a projected fourth annual market deficit. The price rally accelerated Friday, helped by spillover sentiment in the broader metals markets. But the squeeze play was not universally accepted on the 7.8 million-member WallStreetBets board. Several posts on Monday urged members to avoid betting on silver, with some claiming hedge funds and the media were pushing the price jump.
- It has soared 32% this year, outpacing gold and making it one of the year’s best-performing major commodities.
- But that narrative isn’t as straightforward as the one surrounding GameStop, one of the most-shorted stocks in the US before it began surging this month.
- Silver demand is surging, with solar power alone expected to account for 23% of the 2024 supply.
- The precious metal was recently trading up about 9 percent at about $29.40 an ounce after rising above $30 for the first time since 2013.
- He expects silver prices to reach $30 per ounce, which would be a 10-year high, according to data from LSEG.
Silver took center stage in the retail investor frenzy sweeping through markets, sending the metal to a five-month high and fueling a debate over the power of Reddit-inspired speculators to take on ever-bigger targets. What’s more, it’s unclear how long retail investors will stick to the silver trade. The market for silver is also by some measures much deeper than those for smaller stocks like GameStop. The bricks-and-mortar video game retailer had a market capitalization of about $1.4 billion in mid-January, before the Reddit frenzy sent the company’s value soaring more than 16-fold. By contrast, London vaults held 1.08 billion ounces of silver at the end of November, according to LBMA data.
Investors remain net sellers of physically backed silver ETFs, with holdings down 1.7% as of Thursday, according to data compiled by Bloomberg. In the week ending May 14, money managers boosted their bullish wagers on Comex silver futures to the highest in more than two years. Gross shorts held by these investors accounted for 11% of total open interest as of May 14. The message board has waged war on hedge funds by betting against those beaten-down businesses — and now some rookie traders want to execute a similar “short squeeze” in silver to pressure banks that have bet on its price dropping.
The reality of wealth building: Why stocks and bonds are protection, not prosperity
More importantly, silver is working on an uptrend when looking at it from a secular perspective (the last 20 years). “I can envisage a scenario where maybe a hedge fund has purchased maybe a short-term tactical long position, so the upside could be a combination of several factors now,” said Philip Newman, managing director at consultancy Metals Focus.
Silver Spikes Past $30 as Retail Investors Swarm Biggest Target
But that narrative isn’t as straightforward as the one surrounding GameStop, one of the most-shorted stocks in the US before it began surging this month. BlackRock`s iShares Silver Trust, the largest exchange-traded product tracking the metal, recorded an unprecedented $944-million net inflow on Friday. The Silver Institute released its latest physical silver market report, early February 2024. Silver surged to its highest price in years on Monday as it became the latest target for a brigade of day-traders on Reddit. China Silver Group Ltd. rose as much as 45% in Hong Kong, while Australia’s Silver Mines Ltd. gained as much as 49%.
Silver has a dual character, valued both for its uses as a financial asset and an industrial input, including for clean-energy technologies. The metal is a key ingredient in solar panels, and with robust growth in that industry, usage of the metal is expected to reach a record this year, according to the Silver Institute. Against that backdrop, the market is headed for a fourth year in deficit, with this year’s shortage seen as the second biggest on record.
We send weekly newsletters containing only the most relevant news and stories impacting today’s markets.
Most-active futures jumped as much as 13% to $30.35 an ounce on the Comex, the highest in eight years. That followed a weekend buying binge that overwhelmed online sellers of silver coins and bars from the U.S. to Australia. Ken Lewis, Apmex’s chief executive officer, said the decision to temporarily suspend silver sales was unprecedented in the company’s history and that it bitfinex review may take longer then usual to fill orders going forward. As noted by Ted Butler, commercials on the silver COMEX market have the ability to prevent the silver price from rising. The lack of momentum, in a way, is also the result of silver COMEX trading dynamics.
De Beers is closing its man-made diamond jewelry business
We have mentioned in the past that the secular gold to silver price ratio can act as a ‘stretch indicator.’ This ratio tends to suggest when the price of silver is undervalued vs. overvalued compared to gold’s price. According to the chart, the silver price target of $30 given by The Silver Institute does not make any sense. A silver price of $30 an Ounce seems a very conservative silver price target considering a silver supply deficit, bullish secular silver chart, silver’s undervaluation relative to gold. Most-active futures jumped as much as 9.5% to $29.47 an ounce on the Comex, after a weekend buying binge that overwhelmed online sellers of silver coins and bars from the US to Australia. BlackRock Inc.’s iShares Silver Trust, the largest exchange-traded product tracking the metal, recorded an unprecedented $944 million net inflow on Friday.
Is a living trust right for you?
We believe it is unavoidable for silver to move back above 30 USD an Ounce, leading the gold to silver ratio to drop well below 75 points. Reuters published this article today silver refuses to be left behind by gold’s bull run. Whenever the area is broken to the upside, the price of silver will move to our $34.70 target.
Net-bullish bets by money managers rose to a three-week high in the week to Jan. 26, according to CFTC data compiled by Bloomberg. Goldman Sachs Group Inc. described silver as the “preferred precious metal” in a Jan. 27 research note that had a price target of $30 an ounce. Silver has performed well over the past year, rallying more than 50% on a weaker dollar and hopes for an end to the pandemic. Goldman Sachs Group described silver as the “preferred precious metal” in a Jan. 27 research note that had a price target of $30 an ounce. Like the buying stampede in GameStop Corp. and other small-cap stocks that has captivated the financial world in recent weeks, silver’s advance can be traced to Reddit’s WallStreetBets forum.
Silver has performed well over the past year, rallying more than 60% on a weaker dollar and hopes for an end to the pandemic. It has also attracted bullish commentary from some of the biggest Wall Street banks. Goldman Sachs Group Inc. described silver as the “preferred precious metal” in a January 27 research note that had a price target of $30 an ounce.
- Silver’s rally comes amid surging investor interest, an increasingly supportive macroeconomic backdrop and a projected fourth annual market deficit.
- Gross shorts held by these investors accounted for 11% of total open interest as of May 14.
- A silver price of $30 an Ounce seems a very conservative silver price target considering a silver supply deficit, bullish secular silver chart, silver’s undervaluation relative to gold.
- Because of the detailed silver chart insights shared in our silver special edition report shared in the premium gold & silver research service on August 10th, 2024.
October 6th, 2024 – The silver price is ‘consolidating’ right above 30 USD an Ounce. Because of the detailed silver chart insights shared in our silver special edition report shared in the premium gold & silver research service on August 10th, 2024. In it, we explain why exactly and which support level exactly we expect to hold, also trade99 review on which timeframe(s). “We think silver will have a terrific year, especially in terms of demand,” Michael DiRienzo, executive director of the Silver Institute told CNBC.
Silver broke above $30 an ounce as the precious metal took center stage in the retail investor frenzy sweeping through markets. The most-active silver futures on the Comex jumped as much as 8.7% to $29.25 an ounce, after a weekend buying binge that overwhelmed online sellers of silver coins and bars from the US to Australia. What’s certainly interesting is that the report by The Silver Institute did not mention the word ‘silver shortage’ nor did it mention a forecasted silver price of $30.
By Sunday, sellers of physical silver including Apmex — often called the Walmart of precious metals products in North America — said they were unable to process orders until Asian markets opened because of record demand. “It’s been nuts,” said John Feeney, business development manager at Guardian Vaults in Sydney. By Sunday, sellers of physical silver including Apmex — often called the Walmart of precious metals products in North America — said they were unable to process orders until Asian markets opened because of record demand.
