Silver is not GameStop. That is the first lesson of the last few trading hours. After successfully pushing up Dogecoin and GameStop, Reddit investors (and probably not only them) tried to replicate this success by targeting silver. But this is a much bigger whale, with a huge number of players involved. Moreover, silver is the sum of an array of markets: physical (jewellery, industrial, investment, central banks’ reserves) and financial (ETFs, futures, options, and many other derivatives as certificates, CFDs etc.).
After the initial skyrocketing of the price, silver has since lost 5% with the price dropping back below $28. In this case, the fundamental drivers are holding – at least for the time being – against the irrationality of markets. Of course, things could change, but the resistance level of $30 touched yesterday and last summer seems to represent a significant barrier for further rallies of the precious metal.
