Silver (XAG/USD) has extended its rally above $69.00 per ounce for the first time, powered by broad US dollar weakness and rising safe-haven demand. The US Dollar Index has fallen to multi-month lows, making dollar-denominated commodities cheaper for foreign buyers. Market participants are also pricing in a more dovish Federal Reserve stance, with rate cuts anticipated later this year, reducing the opportunity cost of holding non-yielding hard assets.
David Morgan, known in precious metals circles as the “Silver Guru,” said on SilverTrade that he still believes the broader bull market in precious metals has not ended. Silver reached about $121 in January before falling roughly 55% to around $55. It has since recovered to trade as high as roughly $67, and now above $69. Gold corrected from around $5,600 to roughly $3,900 and has moved back toward $4,500. Morgan expects silver could reach $150 within a couple of years or potentially sooner, with industrial consumption, monetary demand, investment flows, and possible government purchases supporting the outlook.
Morgan highlighted a hypothetical demand shock: the United States could eventually rebuild a strategic silver stockpile. He noted the US previously held about 139 million ounces of silver in its strategic stockpile before it was directed toward the Silver Eagle program, and the stockpile had exceeded 1 billion ounces at one stage. A hypothetical US purchase of 100 million ounces over roughly one year would introduce a major new source of physical silver demand. Morgan made clear no government buying program has been confirmed.
Beyond stockpiling, Morgan argued investment demand could be the bigger catalyst. He cited research showing silver once represented only about 0.02% of financial assets and estimated that just 1% of money market funds could represent more than $65 billion, comparable to about one year of silver supply from mining and recycling combined. Silver ETFs could become an important route if institutional demand accelerates, especially if physical availability tightens.
Technically, silver’s break above $69.00 signals strong bullish momentum. The next resistance is near $70.00, while support sits at $67.50 and then $65.00. Elevated trading volumes and rising open interest in silver futures reflect positive sentiment, though some analysts caution the market may be overbought in the short term. For crypto markets, the same dollar weakness and dovish Fed expectations may support hard-asset narratives, but this news is primarily a precious metals and macro story.
