Silver just blasted past $46 an ounce. We're rich!!
...or are we?
This increase isn't quite the same vertical rocket gold has been on these past few years, but it's still pretty crazy. Anyone who stacked even a little is looking at a very different portfolio than they had just a year ago.
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So why the surge? A few possible factors come to mind. Some of you may be able to add more.
- Monetary uncertainty: Central banks have been adding gold, and silver tends to follow. When people get nervous about inflation, debt, or currency weakness, silver demand jumps. And people have been very worried about this, especially since COVID. Like him or hate him, Trump has only caused this fear to increase even more.
- Industrial demand: Silver is more than a shiny coin: it’s critical in electronics, solar panels, and medical uses. Rising demand there supports price pressure.
- Speculation and FOMO: Once silver starts climbing, momentum players pile in, exaggerating the swings.
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But let’s be careful; remember this isn’t free money. The stock market is in a huge bubble and I have warned about that several times (as have many others on Hive) and the same thing applies here.
A few things worth keeping in mind:
- Volatility: Silver is far more volatile than gold. Gains can vanish overnight.
- Paper vs. physical: ETFs and futures often drive the price, not physical coin shortages. That can mean exaggerated swings.
- Not a one-way bet: Just because it’s flying now doesn’t mean it can’t drop back to $30 (or lower) just as quickly.
The temptation is to ape in, imagining $100 silver is just around the corner. Maybe it is. (I think all of us here in SGS hope this.) But maybe it isn’t. If you’re buying at these levels, do it with a cool head, not a gambler’s rush.
Precaution is worth more than regret.
Silver isn't my main investment — Bitcoin is — so this warning isn't for myself as much. I am continuing to invest in silver as I always have been, with coins and rounds every now and then. It's a slow approach that leans more collecting than stacking.
How about you guys? Are you stacking more at these prices, holding steady, or selling into strength?
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David is an American teacher and translator lost in Japan, trying to capture the beauty of this country one photo at a time and searching for the perfect haiku. He blogs here and at laspina.org. Write him on Bluesky. |