What’s going on with the Silver price?

Last week there was great excitement in the stock markets. A group of investors meeting virtually on a platform bought shares of the company GameStop en masse. Precisely a company on which a number of large hedge funds had speculated that the stock price would fall even further. Due to the purchases of all those -mostly private investors- the stock price exploded, by as much as 1500%! Resulting in sky-high losses for the shorters, especially the hedge funds who had gambled on a falling price indeed. And big profits for many small investors who had entered at a low price.

This issue has set off alarm bells at several brokers and authorities. A number of trading platforms halted trading in GameStop stock.

But those private investors have got the hang of it, and now set their sights on the silver price. Because many electronics incorporate precious metals such as gold and silver, we at Van Pelt Recycling monitor the price development of metals (such as copper, aluminum and nickel) and precious metals (such as gold, silver, platinum, palladium) on a daily basis. For several years, experts have been of the opinion that the price of silver lags too far behind the price of gold.

We saw gold prices rise last year, particularly at the beginning of the corona crisis. But silver? Experts speak of considerable upside potential. And we have seen that happen since last week. Because the silver price is already up about 15% last week. And that mainly because of the rumor that the major banks also have short positions on silver, as with GameStop stock.

Currently, there is a lot of talk about this on social media, which could further drive up the silver price. The physical trade of silver bars and silver coins also increased sharply. Since this is a physical material, which can also be found on e.g. circuit boards, it is impossible to regulate silver trading worldwide, as was done with GameStop stock last week.

We naturally follow precious metal prices closely, and are happy to advise you if you want to buy or sell silver.