To The Moon

1. What is driving the recent surge in silver?

Silver has experienced exceptional price appreciation in 2025, significantly outpacing most traditional asset classes and even other metals. According to recent reporting, silver has risen over 130–150% year-to-date as it recorded new nominal highs above $75 per ounce. This move is fuelled by a confluence of factors:

Structural supply deficits. Ongoing deficits with demand exceeding mine supply persist, supported by physical shortages and tight inventories. Estimates suggest multi-year imbalances with industrial demand outpacing supply. 

Industrial demand expansion. Silver is increasingly tied to technology sectors, including clean energy, electric vehicles, and data-centre infrastructure where its conductivity is essential. 

Safe-haven flows. Macro uncertainty, U.S. Federal Reserve rate cut expectations, a weaker US dollar and geopolitical tensions have driven demand for precious metals generally. 

Gold-silver ratio dynamics. The gold-silver ratio has compressed from prior high levels, suggesting stronger relative performance in silver versus gold. 

2. Could silver go “even more parabolic”?

Short-term price action has indeed been steep, but the question of sustained parabolic behaviour hinges on several structural and cyclical factors:

Bullish considerations

Price discovery mode. Breaking above long-standing technical resistance zones signals that silver may be entering a new regime of price discovery, potentially opening targets well above current levels if momentum persists. 

Supply constraints. There is consensus that silver remains in structural deficit, which would support higher price floors absent a significant increase in mining output. 

Risks and constraints

Volatility and mean reversion. Silver is notably more volatile than gold. Sharp rallies can trigger profit-taking and technical corrections even within broader uptrends. 

Macroeconomic shifts. Rising real yields, stronger dollar dynamics or a slowdown in industrial activity could dampen momentum.

3. Can silver break USD100 in 2026?

There is a spectrum of views on this. Some strategists have modelled scenarios where silver could surpass USD100 per ounce in 2026 should the supply deficit stay persistent, inventories remain low, and macro drivers continue to favour commodities. 

From a technical/structural standpoint:

Entering price discovery above long-term resistance implies that technical extensions could target higher zones such as USD72–88 initially, with stretch scenarios beyond that in an expanded bull market. 

Reaching or exceeding USD100 likely requires a continuation of strong demand, further inventory drawdowns, and sustained accommodative monetary conditions or geopolitical risk premiums.

It is plausible, though far from certain.

4. Does “everyone buying” mean it is time to exit?

This is an important behavioural question. In traditional market dynamics:

Strong participation often signals that a move has matured, but it is not inherently a sell signal. Trends can extend beyond expectations if fundamental drivers remain intact.

Caution is appropriate when valuations become extreme or when positioning becomes crowded, as corrections become more likely.

In silver’s case, the rapid run-up and heightened attention do raise the possibility of interim pullbacks or consolidations even amid a larger structural bull.

5. Is silver the “meme stock” of precious metals?

The term “meme stock” implies price moves driven primarily by speculative retail behaviour detached from fundamentals. Silver’s move has elements of strong sentiment and crowd interest, but:

Unlike a classic meme stock, a significant portion of silver’s demand is industrial and investment driven, tied to identifiable structural trends. 

Fundamentals such as supply deficits, industrial demand and safe-haven flows are core elements here, not just social media-driven speculation.

Silver’s narrative is more nuanced than that of a pure meme asset.

Conclusion

Silver’s recent performance reflects a unique confluence of supply constraints, expanding industrial demand, macro uncertainty and technical breakouts. While continuation to USD100 or beyond in 2026 is within the realm of expert forecasts, it is not guaranteed. A measured approach that respects both the structural bullish case and the potential for sharp volatility is most prudent.

Careful risk management and diversification remain essential when positioning around metals that have already exhibited explosive moves.