Silver is the new GameStop tool

Silver price is at its highest in nearly 11 years

Demand for the precious metal flooded into shares of silver miners and silver bullion dealers.

Silver is rising as online trading shines fueled the rise of unpopular stocks like GameStop on the precious metal.

Read Also: 2021: Outlook for Bitcoin Price and Its Risks

Silver futures jumped more than 10 percent on Monday, the largest in 11 years, after briefly rising above $ 30 an ounce in early trade, after strong gains over the weekend.

On Twitter, #silversqueeze was on its way as investors turned their attention to the latest market strategies to exit the "WallStreetBets" forum on Reddit. 

The army of Reddit traders rushed online over the past week to defend spam companies like GameStop and AMC, defeating hedge funds that had bet that stocks would drop by shorting them, in a startling reflection of the financial strength that is ravaging Wall Street.

Silver is now the latest example of the influence WallStreetBets followers are wielding to target inequality in the global financial system.

If the price rises enough for an extended period of time, as is believed, the big investors who bet on gold and silver will eventually have to reverse those trades, repurchase - and push the price higher. That's what partly helped fuel a massive GameStop boom last week.

The silver market craze also spilled over into physical demand for the metal, as coin dealers reported delivery delays because they were overwhelmed with demand.

“Due to extreme market volatility, we cannot accept any new orders at the moment,” Silver Mountain, the Netherlands-based bullion dealer, said on its website, adding that it hoped to reopen by the afternoon.

Demand has flooded for Australian mining stocks, even companies that have yet to start producing any of the metal. Silver Mines Ltd, which operates on undeveloped deposits, jumped 50 percent on Monday, while other mining stocks on the Australian exchange saw double-digit gains.

3 silver arrows to consider the rapid rise of minerals

Although it is often seen as a safe haven or a hedge against inflation, silver is not just a precious metal.

Unlike gold, silver has many industrial uses. It has the highest conductivity of any element for both electricity and heat and is sensitive to light, making it the best component to use in solar panels. Approximately 0.643 ounces of material silver is used in every solar panel produced.

With the introduction of new environmental policies, this year under President Joe Biden rises in alternative energy stocks could continue into 2021. Over the past twelve months, companies like First Solar Inc. (NASDAQ: FSLR) and Jinko Holdings Solar Co. (NYSE: JKS) share price increases of 100% and 230%, respectively. The Global Silver Miners ETF (NYSE: SIL) has risen 40% since January 2020 and with momentum looks set to deliver even more growth.

Here are three of the silver stocks that have achieved the highest return over the past 12 months and look ready to a momentum through 2021.

Endeavor Silver Corp. (NYSE: EXK) is a Canadian silver mining company from Vancouver B. Endeavor has three mines in Mexico and is focused on sustainability in its operations.

In March 2020, Endeavor shares reached their lowest price in four years and reached a bottom.

The stock has since risen nearly 400%. As the momentum continues, there is still room to go for this stock. It is currently trading at $ 4.95, which is well below the all-time high of $ 13.10.

Fortuna Silver Mines (NYSE: FSM) is another Canadian company operating in Mexico, Peru, and Argentina. Fortuna miners silver and gold and focuses on environmental sustainability and responsibility in its operations.

Fortuna is currently trading 430% up from the all-time low in March 2020 stock price of $ 1.47. At about 20% below its all-time high of $ 9.75, there is room to run up if the metal's momentum continues.

Pan American Silver Corp (NASDAQ: PAAS) is also a Canadian exploration and silver mining company operating across North, Central, and South America, and also to focus on responsibility and sustainability.

Pan-American shares are up just over 200% from their March 2020 lows but still below their all-time highs of around $ 12.

Although the rally in silver has consolidated lately, the momentum may continue to drive stock prices higher.

Once the gold rally resumes, tactical buying will help add to silver's gains. This should help silver outperform gold, which we believe will see the gold/silver ratio continue to decline through 2021.