Vaulting markets

1 February 2021 By Swaha Pattanaik Follow @swahapattanaik

The metal’s price leapt more than 11% to an eight-year high after online investors gave it the GameStop treatment. Unlike gold, consumption of the commodity is mainly driven by industrial usage. Volatility has potential for global consequences. It may also be harder to regulate.

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Silver prices surged to an eight-year high on Feb. 1 and silver-mining stocks leapt as small-time investors piled in to the metal.

Spot silver leapt more than 11% in London to $30.03 an ounce, taking gains to about 19% since Jan. 27 and the price to its highest since February 2013. Shares of European-listed miners including Fresnillo, Polymetal International and Boliden rose between 3% and 20%.

Online discussion had turned to silver late in the week ending Jan. 31 as Reddit posts suggested higher prices could hurt banks with large short positions, and said buying easy-to-access exchange-traded silver funds could quickly ramp up the metal's value.

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