The wallstreetbets phenomena has resulted in silver gaining as the Reddit group highlighted silver as a next potential target. The difference between the gains in silver and the increase in stocks like GME and AMC is that silver has some big investment groups who see higher prices ahead. So, it is not a case of the little guy vs the big guys in silver gains. It is a more mixed portfolio of players who are bullish on silver. Also, some of the wallstreetbets group are wanting to distance themselves from silver buying. Silver also has a strong seasonal time of year on industrial demand.

Major investment firms fuel silver gains

  • Goldman Sachs calls silver its, ‘preferred’ precious metal and has a 12 month target of $30/oz. The rationale is that it benefits from USD falls and green tech demand. Makes sense.
  • Citi see more silver upside and see it peaking at $28-$30 oz on a demand recovery.
  • UBS are making a case for silver at $30 by the end of Q1.

Silver seasonals

Seasonal demand is very good for silver around the first half of February. In the last 25 years silver has gained a total of 16 times between January 31 and February 18. The largest gain was in 2009 with a +15.13% gain. The largest fall was in 2001 with a -7.79% loss.

So, with all these bullish factors for silver there is a good case for buying silver on the dips.