There has been a tremendous amount of speculative conversation about the potential for a silver break out to new all time highs but there has been one thing missing to trigger that price reaction.
Panic.
While many of us old time silver bulls long for the days of buying one ounce coins and bars under $10 the reality is that before every major economic shift or event, the price skyrockets in parallel with gold. The gold panic has already quietly begun with central banks buying more gold this year than last as faith in the traditional economic and monetary systems erode on a global scale.
This means that much like shares of Berkshire or Bitcoin which reach astronomic levels resulting in retail buyers shopping for cheaper stocks or alternative coins. Once gold became unaffordable to the masses they will start to look for alternative precious metals or the proverbial poor man’s gold, aka, silver. This morning’s surge in silver prices prompted by overseas buying provides a snapshot into what the start of a panic would look like.
What is causing this sudden surge once we broke and closed above $36 as these pages predicted? As yours truly wrote about last week in IF You’re Complaining About the Quarter End Silver Slam Please Read This Article, I stated the following:
With this breakout the all time highs are now quite potentially a layup as the so-called “new new” approach to monetary policy is beginning to look a lot like the Janet Yellen Modern Monetary Theory idealism that was supposedly abandoned with the election of President Trump.
There is no indication of economic stability in either monetary or trade policy being displayed or promoted by this White House. It is also quite obvious that other nations are tiring of our geopolitical demands and gamesmanship as they are actively seeking alternative currencies and commodities to use for bilateral trade instead of the dollar.
With that being said, watch for the next breakout above $40, probably by the end of next week, a rocket ship to the $48 area and then prepare for the Silver Panicans to take the price to insane levels as shorts and retail realize they have contracted FOMO disease.
(title picture courtesy of Google Gemini AI)