Kitco analyst Jim Wyckoff comments on the increase in Silver prices today. Let’s take a look at your comments about Silver, which reached the highest level in the last 6 months.
Silver futures prices are trading at a sharp high. Gold is showing moderate gains in the early hours of Comex futures on Sunday evening.
The social media weekend focused specifically on Reddit. A growing retail traders group tried to kill another market – this time silver – on Wall Street that they claimed was run by the “big boys”. This follows the GameStock legend from last week.
The precious metal market is a much bigger beast than a smaller stock. Still, the “Redditors” frightened many on Wall Street. Large hedge funds, who particularly enjoy being exposed in stocks, think they will have some trouble now or in the future.
While the gains in silver were certainly solid in early deals on Sunday evening, the epic spikes some social media sites predicted over the weekend did not happen.
Stock indices are trading solidly lower in early “overnight” trading, which could trigger safer-harbor demand for gold and silver if losses in stock indices accelerate.
More importantly, there was some wind behind the gold and silver markets before the Redditor trade started. Many veteran market observers calculated that “inflation trading” would boost raw commodity markets, including metals. Too much liquidity is pumped into financial systems to quickly launch major world economies crippled by the Covid-19 outbreak.