Silver has rocketed higher in recent weeks, but many analysts say the rise is more hype than substance.
Why the Rally Looks Like a Bubble
Market strategist Amit Goel compares today’s silver move to the oil frenzy of 2008 and the tech boom of 1999‑2000. He says the metal is reacting to the tiniest bits of good news, just like stocks did during those historic manias.
What the Data Shows
- Silver ETFs have recorded net outflows despite the price jump.
- Price moves are not linked to the dollar index, equity markets, or any clear economic factor.
- Even with a recent pull‑back, no clear top has been confirmed.
Potential Price Path
Goel sees a solid support zone around $70‑$71 per ounce. He expects a short‑term range of $70‑$84 before another attempt to push higher. While he thinks silver could test $90‑$100 in January, he warns that any peak reached now is unlikely to be sustained for long.
What Investors Should Do
- Stay wary of further upside – the rally may be driven mainly by speculation.
- Consider protecting positions if silver breaks below $70, as a 50‑60% correction could follow within 12‑18 months.
- Watch the gold‑silver ratio; a sharp decline often signals a broader commodity bubble.
Remember, this is perspective, not a prediction. Do your own research and consider your risk tolerance before making any moves.