Over the past week, silver prices have seen wild swings. We have seen some of the most volatile sessions since the 1980s. Analysts believe that the price fluctuation for silver is mostly driven by mismatches between the demand and supply of silver.
Experts have noted that several factors are at play. The nomination of Kevin Warsh as the next chair of the US Federal Reserve, the US Dollar gaining strength, tech equities falling, boosted the risk-off sentiment and added to the price volatility.
Here is a quick wrap of what key industry and market experts have to say about silver price volatility and where they think the future trajectory of the white metal will go.
#1 Peter Schiff advises on buying silver as long as available
American economist Peter Schiff pointed out that the steep decline in cryptocurrencies added to the downfall for silver. He urged investors to opt for physical silver and buy it while the bars and coins are still available.
He emphasised that the physical supply of silver remains limited in comparison to its demand.
#2 Jim Bianco flags leveraged bets as the driver for volatility in silver
According to Wall Street forecaster Jim Bianco, the collapse of silver comes from its heavy leveraging in the markets. Analysts had noted that speculative bets on silver pushed the prices to record high levels, and the collapse in silver prices is part of its technical corrections.
He flags that silver was one of the most vulnerable commodities in the markets and its collapse is somewhat similar to the killing of highly leveraged and structurally fragile markets at the beginning of the 2020 Covid era.
#3 Vijay Kedia says metals melt when overheated
Indian bull Vijay Kedia, in a video posted on X, remarked that punters are essentially driving the silver market. He added that in 1985, during the time of the Hunt brothers, silver crossed the $50/oz mark, which was followed by a very sharp decline to the $6/oz mark.
In his remarks, he added that a similar scenario occurred in 2011, and the white metal also crossed the $50/oz mark in 2025 owing to a successful gamble. He noted that since the shining metal reached its peak, the rally was broken, and now the prices are on their way towards a technical correction.
He sarcastically remarked that young investors are trying to cope with their steep losses, further adding that “metal is meant to melt.” Kedia said that over the long run, he believes silver is on the right track.
#4 Porinju Veliyath sees no regrets in avoiding silver
Indian fund manager Porinju Veliyath says he has no regrets over avoiding assets like gold, silver, and Bitcoin, and further cited them as “speculative” in nature.
He has advised investors to maintain caution over these assets, adding that they have no underlying fundamental values and are being driven by market sentiment and frenzy.
#5 Ed Bradford says silver a rental
US government bond trader Ed Bradford highlighted that in his 32 years of trading, he has never witnessed price action as volatile as what is happening with silver over the past few weeks.
Replying to a tweet, he noted that silver has always been a “rental,” underscoring the asset as more of a short-term trading instrument.
Conclusion
Overall most experts pointed out that the demand-supply mismatch is primarily responsible for the sharp volatility in prices. They further believe that the bulk of speculative trades are now done as a result of the current price action.