Silver price increases by 32% since the beginning of the year and 4.89% in the past month, far exceeding gold with prospects of reaching 50-100 USD.
The precious metals market is witnessing an impressive comeback of silver, as for the first time in 14 years, its price has touched 38 USD/ounce. While gold quietly adjusted down by 0.07% in the past month, silver has attracted all attention with a 4.89% increase in the same 30-day period. The last time silver fluctuated around or above this level was during the legendary price surge in 2011.
Currently trading at 38 USD/ounce for .999 pure silver, the metal has made an impressive recovery, increasing by over 32% against the US dollar since the beginning of the year. This strong upward trend has sparked optimism in the precious metals investment community, with many experts believing that the new price cycle has just begun.
Precious metal enthusiasts believe this increase is not yet over. Some predict silver will exceed 50 USD, while veteran analyst Michael Oliver – founder of MSA Research – even suggests silver could reach beyond 100 USD. "What is happening now is that silver is making up for a long period of being suppressed by forces trying to keep prices from rising," Oliver shared with King World News this week.
Short Squeeze and Capital Flow Shift
According to Oliver, the main issue lies in the fact that as silver prices rise, those holding short positions become trapped and are forced to exit their increasingly vulnerable positions. This "short squeeze" phenomenon is considered one of the primary drivers pushing silver prices up recently.
It has been 14 years since silver was last at this price level – in March 2011, silver prices exceeded 47 USD/ounce. Earlier, during the price surge in early 1980, silver also surpassed 35 USD. However, between these two milestones, silver prices were largely suppressed and even fell below 14 USD in March 2020.
Philip Streible, chief market strategist at Blue Line Futures, notes that now is silver's time to shine. "Platinum is experiencing a strong surge, and gold remains steady above 3,300 USD, so the shift of funds towards silver is understandable – now is silver's moment," Streible told Kitco News.
Veteran gold investor Peter Schiff also supports this view, repeatedly arguing that bitcoin's new price peak is merely a "distraction" and emphasizing that silver is the true highlight of the current market. "Even though bitcoin reached a new peak today, if you had followed yesterday's advice to sell bitcoin and buy silver, you would be better off today. Moreover, you would have avoided many risks," Schiff stated.
