Increase in demand for silver
Last Thursday, 28 January 2021, we noted a sudden peak in the silver price. In the space of two hours, the price even shot up by 6.5%. In the meantime, the price has fallen again slightly. But it is still 5% higher than before.
Where does this sudden jump come from? On social media platforms such as Reddit, small investors urge each other to invest in silver. You then get a kind of snowball effect, because more and more people buy silver or silver shares. We already mentioned it in our previous blog post: higher demand, higher price. That's just how the market works.
In gold you often see the effect of such manipulations too. You'll notice that demand for gold has recently risen by around 40%. But then it is the big players who manipulate the price. Silver has a lower entry cost. So an army of smaller investors can also seriously influence the silver price.