Meanwhile, the economic stimulus and global recovery have fueled optimism. As a result, Asian stock markets have been opening high for two days in a row. The investors also focus on the meeting of U.S. President Joe Biden and Republican senators that will take place on Tuesday. They will discuss the coronavirus support bill and the stimulus plan that was released on Monday. According to the plan, the amount is $618 billion, which is third the size of what Biden had proposed. Furthermore, the USD has been hovering high. Germany's consumer spending has directly affected Euro's weakening, and the USD has significantly benefited from it.
Reddit investors from the Wall Street forum have caused the spike in the silver price. From Thursday to Monday, silver company prices grew massively. Majestic Silver Corp (NYSE: AG) increased by 60.5%, and Pan American Silver Corp (NASDAQ) by 30.7%. Wheaton Precious Metals (NYSE: WPM), Fortuna Silver Mines (NYSE: FSM), and Silvercorp Metals Inc (NYSE: SVM) also saw significant profits starting from Thursday.
Reddit forum members decided to turn to silver as they got restricted by brokerages to trade popular stocks. Therefore, the sudden interest in silver caused the price to go up to its eight-year record. Reddit traders have moved the demand already; however, it is unclear whether it will continue to affect the silver prices directly.
Mohamed El-Erian, the Allianz chief economic advisor on CNBC's, said that the fact that one can move a large market like silver indicates that new technicals need to be taken seriously. The CEO of silver miner Manuka Resources, Dennis Karp, believes that Reddit's push is not the only reason for the silver price surge. He thinks that the rising inflation expectations are what helps the silver go even higher.