On: Thursday – February 04, 2021
Silver is trying to recover today after it plunged more than eight percent in the previous session, which encouraged investors to buy the metal, although a rally led by posts on social media last week appeared to have lost momentum, according to Reuters. And silver in spot trading rose 0.4 percent to 26.71 dollars an ounce by 0644 GMT. Prices hit $ 30.03 on Monday, their highest since February 2031, after small investors responded to calls on social media to flood the market in a process similar to what happened in GameStope stocks. “The craze (of individuals) is over,” said Stephen Ince, chief global market strategist at Axi Financial Services, adding that the latent demand for silver on the back of the drive towards green energy will support prices. Silver, a safe-haven asset and an industrial mineral, plunged more than 8 percent on Tuesday after the Chicago Mercantile Exchange raised the hedging margin on silver futures to 17.9 percent on Monday, in a move aimed at reducing market volatility. “(The Chicago Stock Exchange intervention) allows markets to breathe more easily because fears of a rapid crowd of people have diminished dramatically,” said Ins.