Analysis: This round of silver price increases may be mainly driven by speculative activities, and there is a risk of a sharp correction.

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According to BlockBeats, on January 27, a strong surge in silver prices pushed trading volume in the iShares Silver Trust to nearly $40 billion on Monday, a volume comparable to the S&P 500 ETF and surpassing that of Nvidia and Tesla.

Since 2025, silver prices have more than doubled, with a nearly 60% increase this month, marking the largest monthly gain since 1979. Gold and mining stocks are also rising in tandem, but insufficient liquidity suggests that speculation is the main driver of this rally, increasing the risk of a sharp price reversal.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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