The Reddit revolutionaries have moved on from GameStop (NYSE: GME). That “meme” is so…yesterday. The mob’s new target: silver.

The concerted effort in recent days of amateur investors to push up the price of silver is yet another example of the outsized influence wielded by Reddit channel r/wallstreetbets. However, as I explain below, silver just so happens to be a shrewd investment now.

The most actively traded silver futures surged by more than 9% on Monday, hitting five-month highs. That comes in the wake of a 6% rally in silver prices last week. Spot silver surpassed $30 per ounce Monday from $25 on Thursday morning. Silver mining stocks and exchange-traded funds are on a tear, posting double-digit gains.

Sites that sell physical silver are warning customers that they can’t meet soaring demand for silver bars and coins. But silver is more than a temporary fad. I think silver prices have further to run, not just over the near term but for 2021 and beyond.

Storm the Bastille!

The now-infamous Reddit forum sent GameStop and other heavily shorted stocks soaring last week, roiling markets and battering hedge funds that had bet against those ailing companies. But on Monday, high-flying GameStop fell to earth, plunging by 30.8%.

Watch This Video: GameStop and the Investor Insurrection

The “hive mind” on r/wallstreetbets has turned its attentions to silver. In addition to seeking profits, the Reddit vigilantes say they want to hurt big financial institutions. They claim the big banks are manipulating commodities markets and artificially suppressing precious metals prices, especially for silver. By making big bets on silver, they’re sticking it to the establishment. That’s their reasoning, anyway.

Unlike previous GameStop machinations, the silver-buying frenzy hasn’t spooked the broader market. On Monday, the Dow Jones Industrial Average jumped 229.29 points (+0.76%), the S&P 500 rose 59.62 points (+1.61%), and the tech-heavy NASDAQ soared 332.70 points (+2.55%). In pre-market futures trading Tuesday, all three main U.S. indices were sharply higher. The Reddit dogs bark, but the stock market caravan moves on.

Why silver makes sense…

The Reddit-induced mania in the silver market is likely to be short-lived but the development underscores silver as a reliable, long-term opportunity.

Industrial demand plays a key role in silver’s bullish story. Both gold and silver are used in several industrial processes and consumer products, but silver is far more prevalent and crucial.

According to the Silver Institute, about 46% of world silver supply is used in industrial applications. Silver is a superb conductor of heat and electricity, making it an integral component in medicine, electronics, automobiles, food processing, solar energy, textiles, and radiography, to cite only a few industries.

Silver is found in computers, televisions, batteries, smartphones, calculators, cameras, conventional and electric vehicles, rockets, airplanes, watches, clocks, microwave ovens… the list goes on.

The unstoppable momentum of solar energy is a powerful tailwind for silver, because the metal is vital for the production of photovoltaic cells. Another boost for the “white metal” is demand for silver-zinc batteries, which are widely used in missile, space launch, and electric vehicle (EV) applications.

Due to global efforts to combat climate change, we’ll witness increasing electrification that will boost silver demand, especially in sectors such as automotive manufacturing (see chart).

In another bullish development for silver, automotive giant General Motors (NYSE: GM) announced last week a switch to only EVs by 2035.

These indispensable uses for silver will continue increasing, especially under the economic and environmental policies of the new Biden administration. Fiscal stimulus, combined with an emphasis on renewable energy, should provide a tailwind for silver prices this year.

As the coronavirus pandemic continues to give investors the jitters, gold and silver are showing considerable luster. Amid the alarming emergence of new COVID-19 variants, you can expect further price appreciation of precious metals.

Gold and silver are traditional safe havens during times of market anxiety. But when gold prices rise, silver tends to rise even higher. Silver is considerably cheaper per ounce than gold. As gold climbs in price, traders perceive a bigger bang for their buck with silver.

Also fueling the recent rise in silver prices is a growing shortage that resulted from cutbacks in production among miners in recent years, as the price of the metal slipped. It doesn’t take a genius in economics to figure it out: when demand for a commodity increases but supply has dwindled, prices will soar. The price of silver is projected to rise 39% in 2021.

The pandemic, geopolitical tensions, supply shortages, the prospect of faster economic growth, massive fiscal and monetary stimulus, and growing signs of inflation all add up to bullish conditions for silver.

A prudent move now would be to increase your exposure to silver. Not because of the stock market wiseguys on r/wallstreetbets, but because of fundamental conditions.

Editor’s Note: There’s another commodity that’s vital to modern industrial society and it’s poised to soar in price, too. However, unlike silver, this metal isn’t making big headlines. That’s good news for you. For details about this undervalued commodity and how to profit from it, click here.

John Persinos is the editorial director of Investing Daily. You can reach John at: mailbag@investingdaily.com. To subscribe to his video channel, follow this link.