As goes GameStop, so goes silver?
Silver prices surged in early trading Monday, jumping 11% to $30 an ounce, prompting investors to dive into ETFs like iShares Silver Trust (SLV) and the Aberdeen Standard Physical Silver Shares (SIVR), which surged almost as much as the metal.
The iShares MSCI Global Silver and Metals Miners ETF (SLVP) and Global X Silver Miners ETF (SIL) also soared in early trading. By midmorning, those two ETF were trading about 50% higher than SLV and SIVR, which had retreated to gains closer to 6% in line with a retreat in silver prices.
The rally, which began last week when silver prices had gained 6%, has also spilled over into the market for physical silver bars and coins, according to Bloomberg.
Bloomberg and other news sites say the frenzy in silver, like the GameStop mania, is due to heavy buying by traders in the WallStreetBets Reddit group, driving up prices to levels not supported by the market fundamentals.
But the market for silver is unlike the market for GameStop stock, which was heavily shorted by hedge funds, who became a target for Reddit day traders.