Last week Investors, Traders, Gamblers, and everyone else that heard the news about pumping Silver got their hopes crushed after failing to pump the white metal. All this news circulated from the Reddit page ‘r/wallstreetbets’, however it was later reported to be fake news put in by hedge funds to recover from their Gamestop and AMC losses. After failing to break through $30 (USD/Oz) we started to see the beginning of the decline Silver faced. The risk to reward ratio was too high for precious metals as compared to the equity and treasury markets. Traditional investors chose the cautious route and took profits from what was a failed rally. Another massive factor that investors chose to opt-out of Silver was due to the US Fiscal Stimulus and Vaccines coming very soon. Later on in the week during Thursday’s trading session we saw a huge drop in precious metal prices with Gold prices dropping below $1800 (USD/Oz), which was a huge resistance for the yellow metal. The drop was temporary as Gold recovered from its losses on Friday and broke back above the $1800 (USD/Oz) level. This was Gold’s first lowest price of 2021, which it was unable to hold. This dip in the price of Gold was an excellent entry for those who bought into the yellow metal. Historically, in situations like this, we tend to always see more buying volume coming from smart money when Gold and Silver are at lows. Buying during these dips will get you the best return on your investment. With a weaker US economy, we could see the price of the precious metal go even higher, making now a great time to enter into the market.

The week began with a spike in Gold and Silver prices as a result of the pump and dump news that was circulated over social media. This drove up the demand for precious metals. Early in the week, Gold closed at $1859.44 (USD/Oz) while Silver closed at $28.68 (USD/Oz).

Midweek, precious metals experienced a decline in prices as a result of the failed pump and dump and investors looked to be more cautious with their investments. Midweek, Gold closed at $1834.24 (USD/Oz) while Silver closed at $26.85 (USD/Oz).

End of the week, we saw the massive drop in precious metals prices before its slight recovery on Friday. The recovery resulted from news of a weaker US Economy. To end the week, Gold closed at $1814.14 (USD/Oz) while Silver closed at $26.91 (USD/Oz)