Silver has achieved a historic milestone, with its price surging above $90 per ounce for the first time ever, while its total market capitalization has officially surpassed $5 trillion. According to data from The Kobeissi Letter, this represents a year-to-date gain of over 25%, driven by a potent mix of speculative fervor and macroeconomic forces.
The rally is underpinned by severe supply constraints. Keith Neumeyer, CEO of mining company First Majestic Silver, has stated that silver prices are poised to exceed $100 per ounce in the coming months due to these shortages and heightened industrial demand. The situation has become so acute that the U.S. Mint has reportedly paused sales, a move analysts interpret as a sign that overwhelming physical demand is overwhelming the system. Market analyst Echo X commented, "This is not normal. At all…When the Mint pauses sales, it means physical demand is overwhelming the system, and the paper price is no longer accurately reflecting the market value. This is how every silver squeeze starts."
This supply-demand imbalance is creating significant volatility and procurement challenges for technology and manufacturing sectors reliant on silver. The U.S. Geological Survey's (USGS) upcoming 2025 critical minerals list is expected to further influence industry dynamics.
Analysts are also drawing parallels to historical cryptocurrency market cycles. Crypto analyst CRYPTOWZRD highlighted that in past cycles, such as April 2016 and July 2020, breakouts in the price of silver against gold (XAG/XAU) preceded major rallies in Bitcoin ($BTC) and other cryptocurrencies. The current setup suggests that if history repeats, silver's bull run could signal an impending explosive move for the broader crypto market.
