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International silver prices have plummeted. The US individual investors who led the GameStop incident lost their strength after a day of intensive purchases, taking silver as the’second gamestop’.
On the 2nd (local time) on the New York Merchandise Exchange, silver for March delivery closed at $26.402, down 10.3% ($3.02) per ounce from the previous day. On the previous day, it surged more than 9%, reaching the highest level in eight years since February 2013.
Individual investors, grouped around Wall Street Betz, a stock information sharing bulletin board within the online community Reddit, campaigned to buy silver-related products, saying that large banks and the government are holding down the silver market.
The sharp decline is attributed to CME Group, which operates the exchange, raising the margin for silver futures contracts by 18%. It is explained that it is common for exchanges to come up with such measures when prices fluctuate heavily.
In addition, the fact that the US Commodity Futures Trading Commission (CFTC) is closely monitoring the situation regarding the movement of individual investors seems to have had an impact.
Gold prices also fell. The New York Merchandise Exchange’s April deliveries also closed at $1,833.40, a drop of 1.6% ($30.50) per ounce on the same day.
International oil prices are strong every day. West Texas crude oil (WTI) for March delivery on the New York Commercial Exchange (NYMEX) closed at $54.76, an increase of 2.3% ($1.21) per barrel, the highest since January 23rd last year. The fact that the increase in oil production in major countries was slower than expected is interpreted as boosting prices.
Reporter Lee Song-ryul [email protected]
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