PRECIOUS-Silver 8-year-old peak blades as sales blitz continues

* Advanced long-term investors for money analyst

* Chinese investors jump on money

* India reduces import tax on gold, silver by 5%

* Gold-silver ratio drops to multi-year low (Repeat, add comments, update prices)

February 1 (Reuters) – Silver extended its rally to third session Monday, jumping as much as 11.2% to a nearly eight-year level as retail investors continued to focus on the metal in euphoria of selling in GameStop style.

Spot silver jumped 8.4% to $ 29.27 an ounce before 10:33m EST (1533 GMT), after peaking since February 2013 at $ 30.03.

Paving the way for a 19% rise in prices since Thursday, posts began circulating on Reddit appealing to small investors to buy money mining stock and trade currencies (ETFs) backed by cash bars physical, in pressure in GameStop style.

“This profiteering on social media is at an early stage for money and there is uncertainty about what we can be,” added Edward Moya, OANDA’s senior market analyst, adding due to positive foundations , that there will be additional new investors positive long-term for money.

“Eventually, the money bubble is likely to pop and you will have those precious metal dealers who will find the ones with physical coins.”

Data from iShares Silver Trust ETF, the largest cash-backed ETF, showed that its cash holdings jumped to a record 37 million shares from Thursday to Friday alone, each representing an ounce of cash.

Currency prices could rise to the highest level captured in 2011, said Michael Matousek, chief trader at US Global Investors, adding that paper demand could enter the corporate market as well.

Spot gold jumped 1% to $ 1,864.47 an ounce, while U.S. gold prices rose 1.1% to $ 1,869.70.

Experts warn that near-gold performance indicates that a money rally may not last long. An ounce of gold currently buys 63.6 ounces of silver, compared to 73.3 ounces on Jan. 25.

Platinum gained 4.4% to $ 1,119.96 and palladium rose 0.6% to $ 2,239.78.