Retail investors put nearly $500 million into silver last week
They seized the opportunity to buy an attractive asset cheaper: at the end of January, silver fell in price by almost 30%
On the day the price of silver collapsed 27% investors poured more than $100 million into it / Photo: Lee Charlie / Shutterstock.com
For six trading days, ending on Thursday, February 5, investors have invested $430 million in SLV - the largest exchange-traded fund of silver, writes the Financial Times with reference to the data of Vanda Research. In particular, on January 30, when the price of precious metal collapsed by 27%, the fund received $100 million, the publication reports.
Silver's appeal only increased after a "huge sell-off" that some investors saw as a buying opportunity on the downturn, StoneX analyst Rona O'Connell explained. "People are attracted by the 'sex appeal' of this asset," she said.
Precious metals soared in January in a rally fueled by speculative momentum, geopolitical instability and concerns that the U.S. Federal Reserve might lose its independence from the White House. That meteoric rise came to an abrupt halt in late January, when silver suffered its biggest collapse in history and the fall in gold prices was the sharpest since 2013. Quotes remained extremely volatile last week: on February 5, for example, silver fell by 16%, reversing the gains of the previous two days.
On Monday, February 9, the spot silver price jumped 5% to $82 an ounce.
This article was AI-translated and verified by a human editor
