Alright, today we are going to look at what the hell has been happening over the last few days with the price of silver, and why we need to be extremely careful.
For those who have not noticed, the price of silver has skyrocketed and is now sitting at 72 dollars per ounce. In recent days, silver has been at the center of an unprecedented investment frenzy, fueled by the media, social networks, and of course the fear that “if you do not get in now, you miss the opportunity of a lifetime.”
Everywhere you look there are headlines about “metal shortages,” short squeezes, and geopolitical moves that are creating imbalances in the market.
WHAT IS HAPPENING WITH SILVER?
The price of silver has reached 72 dollars per ounce, recording an increase of 162 percent in 2025 alone. In fact, last weekend it even exceeded 86 dollars due to a short squeeze. For those unfamiliar with the term, a short squeeze happens when a sudden rise in price forces those betting on a decline to urgently close their positions, which pushes the price even higher. This phenomenon is not rare, but when it happens at such speed, it is a clear sign of an overheated market.
This explosive move is due to two main reasons:
Increase in demand: The energy transition, technology, and electric vehicles are constantly increasing demand for silver. Silver is used in solar panels, circuits, electronics, medical applications, and much more.
Decrease in supply: China reduced exports to pressure the United States. The United States responded by labeling silver a “critical metal” and also reduced its exports. The result was a significant drop in global supply.
So supply went down while demand went up. As we know, when both happen at the same time, prices explode. Up to this point, everything makes sense. The problem starts when gamblers enter the game.
The market is now full of people buying silver purely and only because they see the price going up. Without knowing what they are buying, without calculating risk. A classic case of frenzy. It is the same pattern we saw with meme stocks, with crypto, and even with shares of companies that had no real substance. Hype creates more hype, and that is how bubbles are formed.
And as always in such cases, a correction follows. The day before yesterday, we saw a drop of 14 percent in a single day, the largest in five years. And no one knows whether that was just the beginning or if a much bigger collapse is coming.
History is ruthless:
In 1980, after the silver rally, the price collapsed. Investors were trapped for decades.
In 2011, silver reached 50 dollars and just a few months later lost more than 60 percent of its value. Those who bought into the hype back then needed years just to break even.
Having said that I believe the rally is not over yet.
