Silver to $39.50: Up 9.4% Past 30 Days
Silver is making headlines once again, breaking through barriers that have held it down for years. Recently, silver hit a remarkable 14-year high, closing at an impressive $39.33 per ounce. Many investors are now asking the critical question: What’s driving this surge, and can it continue? There’s a few major factors:
Physical Demand Skyrocketing: On the COMEX, deliveries of physical silver are surging to nearly 2 million ounces per day — matching global daily production. This unprecedented demand underscores a looming supply squeeze as industries, investors, and short-sellers compete fiercely for limited resources.
Critically Low Inventories: London Bullion Market Association (LBMA) silver reserves are dwindling, currently standing at a historic low of just 155 million ounces. With vaults drying up, the physical market’s tension is becoming increasingly evident.
Global Market Turmoil and Supply Chain Shocks
Geopolitical tensions are adding fuel to silver’s fiery rally. The recent imposition of a 30% tariff by the United States on silver imports from Mexico and the European Union — key suppliers accounting for over 25% of US imports — could lead to supply chain disruptions, amplifying fears of shortage and driving prices higher.
Institutional Investors Taking Notice
Institutional and retail investors alike are waking up to silver’s compelling story: tight supply, strong industrial demand, limited mining capacity, and historically undervalued prices compared to gold. As speculative capital floods the market, the fear of missing out (FOMO) is becoming palpable, further pushing prices upward.
Unsustainable Short Positions
Alarmingly, 483 million ounces of silver were recently dumped into the market in just an hour — a desperate attempt by banks holding short positions to curb the metal’s price breakout. Yet, this move has left these financial institutions underwater, intensifying the pressure as they scramble to source the physical metal needed to cover their shorts.
Future Demand in Solar Panels
Silver’s role in renewable energy is becoming increasingly significant. The silver content in solar panels is expected to consume 25% of global supply by 2030, up from 16% today. Even a modest price increase won’t deter solar manufacturers significantly. However, Maloney cautions that extreme price levels, say around $700 per ounce, could prompt efforts to conserve silver usage or even slow down solar panel adoption.
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Silver’s True Value
Adjusted for currency supply (M2), silver today would be valued around $520 per ounce based on its historical peak from January 1980. Even more dramatically, using John Williams’ Shadow Government Statistics — which correct government inflation calculations — silver’s true valuation could reach staggering levels, possibly $2,000 an ounce or more.
What’s Next for Silver?
Silver’s resurgence isn’t just a market blip — it represents a profound shift that savvy investors have anticipated for years. With supply shortages, rising industrial demand, geopolitical tensions, and the awakening of institutional investment, silver’s trajectory seems poised for potentially historic highs. Mike Maloney’s decades of foresight into precious metals investing underscore this moment as an extraordinary opportunity.
The question now isn’t if silver prices will continue to rise, but how far they’ll go. Are you positioned for this silver awakening?
