From a low point of £10.26 per ounce on 18th March 2020, the silver price rose to £18.20 on the 15th January 2021. However, on the 28th January 2021 something extraordinary happened, alerts flashed across trading desks as the silver price began to climb unexpectedly from £18.28 to £19.51, over 6.5%, in the space of just over 7 hours!
Despite dipping below £19 overnight, at the time of writing on 29th January 2021, the price has recovered again to £20.05 per Troy Ounce.
The explanation for this unexpected spike in the silver price appears to be…People Power.
A global army of day traders using sites such as Reddit have recently made headlines in relation to the way in which stock prices can be influenced with concerted action. The fallout from recent trading in GameStop shares has led to some online brokerages preventing clients from buying shares due to market volatility and calls in the US for legislation to prevent such ‘market manipulation’.
It appears that the 4.7 million members of one Reddit group are now turning their attention to silver with reports on the platform referring to silver ETF’s and opportunities to buy in to silver mining companies.
An unexpected 40% jump in share price prompted First Majestic Silver Corp, owners of three silver mines in Mexico, to release a statement declaring that it was ‘not aware of any material, undisclosed information related to the company that would account for the recent increase in the market price and level of trading volume’ of its ordinary shares.
Time to Cash In?
If the recent price rise is tempting you to consider cashing in some, or all, of your silver assets you need look no further than https://www.ukbullion.com/selling.
Smaller consignments, up to the value of £2,500, can be sent to us by fully insured Royal Mail Special Delivery. Royal Mail will even collect consignments from your home if you do not wish to visit a post office. If you wish to use the Royal Mail Home Collection service, we will gladly send you a packing kit and the correct tamper-proof pouch free of charge. Just call us on 0800 090 3256 and we will immediately dispatch a kit to you.
If you wish to sell larger consignments of silver we can arrange to accept delivery in person by clients at our Wolverhampton Offices. Visits are strictly by appointment only and full Covid related precautions will be observed at all times.
Time to Buy In?
Many analysts have been highlighting the potential for silver prices to rise steeply over the last year and this latest spike in prices is seen as the potential catalyst that will release this ‘Sleeping Tiger’ precious metal https://www.ukbullion.com/blog/is-it-silvers-time-to-shine.
We offer a wide choice of silver bullion coins and bars which will be of interest to investors and collectors alike.
VAT Free Silver Bullion
Whilst silver bullion purchased for delivery in the UK is subject to 20% VAT, we have developed a service which allows our customers to buy fully allocated silver bullion bars or coins VAT Free. The assets are held in high security, fully insured UK vaults within the LBMA network. Customers can add to or sell their holding within the vault with no liability for VAT.
Customers can request delivery of stored assets but at the point of exit from the vault, VAT becomes due based on the value of the assets at that time and handling and delivery costs are also charged.
Storage charges are payable after an initial 6 months free storage period.
Keep an Eye on Prices
Whether you are a potential buyer or a potential seller in the silver market, the next days and weeks should be interesting as we see this latest story unfold.
Keep up to date with our silver price charts to help you with your buying and selling decisions.