Why Silver Has Become Unhinged By Larry Benedict, editor, Trading With Larry Benedict Silver just scored its best annual gain in over 45 years. At one point in 2025, silver prices were up as much as 174%. The metal marched to new record highs along the way, blowing past its prior peak. Silver prices have only touched $50 per ounce two times before in history – in 1981 and 2011. Each time, they sharply pulled back. Today, silver trades at $80 per ounce and has sustained new high ground. For as much attention as the artificial intelligence (AI) trade received last year, the 20% gain in the tech- and AI-heavy Nasdaq pales in comparison to the gains in silver. The relentless rise is captivating investors anxious to get in. But investors should be questioning the transformation behind silver’s demand. There’s a reason for the parabolic move higher. But don’t count on it to last… | Recommended Links Double-Digit Gains from Wild Stock Swings Former hedge fund manager Larry Benedict has discovered a unique way to grab repeated double-digit gains from both the wild up-swings… and nasty downturns… so common in the markets today, like: - Apple → 27% in 1 day… 29% in 2 days… and 57% in 12 days
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And on Thursday, January 15, 8 p.m. ET, for the first time ever, Larry is going public with his new findings in a new event called Get Rich Slow. Click here for more details. (When you click the link, your email address will automatically be added to Larry's guest list.) The Small Stock Powering Apple, Meta, and Amazon This little-known company doesn’t make chips… It designs the blueprints Big Tech can't live without. Apple, Meta, Amazon, and Google all license its architecture to power next-gen AI. And it’s quietly expanding into servers, autonomous cars, and AI factories. Click here to discover this under-the-radar AI supplier >>> | Record Supply Deficits Along with gold, silver has traditionally been coveted by investors as a store of value. That reputation receives a boost during times of easy money (i.e., Federal Reserve rate cuts) or when inflation fears impact the market. Historically, silver and gold had limited industrial uses. Neither pays interest or a dividend, and they don’t have any sort of earnings. Instead, the value resides in their relative scarcity and the difficulty of extracting more out of the ground. But at least for silver, that’s all changing. Demand for physical silver is soaring. The demand is so strong that the key London market nearly ran out of physical silver at one point last year. Global inventories are plunging all over the world. Silver has been in a supply deficit since 2020. But over the past couple of years, the situation has grown worse. Total silver demand is currently outpacing production by about 800 million ounces. Prices are suddenly spiking higher as silver faces the largest supply deficit ever. The reason for soaring demand is simple: Silver has become another AI play. Tune in to Trading With Larry Live  Each week, Market Wizard Larry Benedict goes live to share his thoughts on what’s impacting the markets. Whether you’re a novice or expert trader, you won’t want to miss Larry’s insights and analysis. Even better, it’s free to watch. Simply visit us on YouTube at 8:30 a.m. ET, Monday through Thursday, to catch the latest. | AI’s Silver Transformation Silver is transforming into a major industrial commodity. It is an excellent electrical conductor, which makes it well-suited for a variety of uses in data centers that are running AI applications, assisting in everything from semiconductors to power distribution. Demand for silver content used in data centers was estimated at 25 million ounces in 2024. That figure is projected to increase by 80% over the next few years as data center investment explodes higher. Silver is just the latest to benefit as AI-driven investments are taking over the economy. Through the first half of 2025, AI-related spending accounted for 92% of total gross domestic product (GDP) growth. By some estimates, AI-driven capital spending could top $1 trillion in 2026 alone. AI spending is causing a major transformation everywhere you look. The massive sums being spent are distorting prices across various markets… everything from Nvidia (NVDA) chips to silver. The impact of the AI spending boom is driving a record concentration in the S&P 500, with some of the most excessive stock market valuations in history. And now silver prices are going parabolic too. That’s what’s making me nervous. As I pointed out above, each time silver hit $50 in the past, it couldn’t sustain the move for long. Now we’re far past that price point, yet few seem concerned about a pullback. I’ve been trading for over 40 years. While this isn’t the first time I’ve seen a transformative technology send asset prices into overdrive, it’s certainly one of the biggest transitions I’ve witnessed. And just like in the past, the boom will usher in a new era of volatility that no one is prepared for. The gains look easy to come by for now. But as quickly as silver has risen, it could return to earth, especially if the AI bubble deflates. And it’s not the only area of the market where volatility is brewing. Of course, that’s good news for traders who know how to take advantage. I’ve turned these types of volatile setups into double-digit gains over and over again in mere days or weeks during recent years. And I’ve helped my followers make serious gains even during market pullbacks like 2008 and 2022. That’s why I’m preparing my Get Rich Slow event just days from now, on January 15 at 8 p.m. ET. There, I’ll reveal the full picture of this market shift that’s occurring… as well as my favorite way to tap into the income stream it’s creating. If you’d like to learn about my favorite strategy for these moments, be sure to RSVP here right now with one click. I’ll look forward to seeing you there! Happy Trading, Larry Benedict Editor, Trading With Larry Benedict Free Trading Resources Have you checked out Larry’s free trading resources on his website? It contains a full trading glossary to help kickstart your trading career – at zero cost to you. Just click here to check it out. | |
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