And just like that, silver is nearly at $80. Unbelievable. Of course gold has been even more nuts. Platinum too. All the metals are going crazy. But silver has always been the poor man’s precious metal to invest in, so when it goes crazy, we all pay attention.
And now the question is: do we sell or hold? Or, hell, continue to buy in?
I think there are a lot of factors here. There are inflation worries, of course. The Fed is expected to lower rates, and the dollar to grow ever weaker. Trump’s continual floating of the idea of a “tariff dividend” to the American people doesn’t help. If that last stimulus triggered massive inflation, what do you think this next one will do?
That aside, there is growing industrial usage, and this is a major price driver. Solar panels, EVs, AI data centers, and electronics are significant consumers of silver, and inventories have been shrinking. In addition, Samsung has reportedly been experimenting with a new battery technology that uses silver to dramatically increase battery life. It’s not in production yet, but rumors alone are already driving silver speculation.
It’s also worth remembering that silver has been higher before. The Hunt brothers famously drove silver to around $50 in 1980, but when adjusted for inflation, that peak would be well over $150 today. By that measure, even at $80, silver isn’t anywhere near its historical extreme.
I think silver could keep increasing. Inflation is not going to be less of a worry anytime soon — especially if Trump gets his “tariff dividend” — and this increased industrial demand isn’t going anywhere. I’d keep buying if I could afford it! $90 by New Year’s? What do you think?
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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. |
