I just looked again at the silver price development over the past few months — wild what was going on there. At the beginning of 2026, the price literally exploded, first over $121 per ounce, then a 30% crash within two days. I’ve rarely seen anything like that.

If I understand it correctly, the silver price was already crazy in 2025. It rose from about $20-25 to over $70 — almost a 150% increase. Then another 70% in one month in January. Crazy. Many talk about a raw material supercycle, and honestly, it makes sense when you look at how tight the supply is.

However, the analysts are not at all in agreement. Citigroup predicts $150 in three months, other experts expect $50. Goldman Sachs warns of extreme volatility. The Silver Institute reports a structural deficit — the fifth year in a row where demand exceeds supply. That’s actually bullish, but the strong dollar and Fed policies regularly break down the price.

What interests me: industrial demand for silver continues to grow. Solar panels, electric vehicles, AI infrastructure — everywhere this stuff is needed. At the same time, mine supply can hardly keep up. According to the Silver Institute, demand should rise significantly by 2030. That could further drive the silver price in 2025 and beyond.

But the risks are also real. The new Fed chief Warsh is considered a supporter of higher interest rates, which strengthens the dollar and makes silver more expensive for international buyers. Physical demand from Asia has been brutal lately — in Hong Kong, silver bars were sometimes sold out within hours because many see silver as a cheap alternative to gold.

Historically, it’s interesting: in 1980, the Hunt Brothers tried to manipulate the market, the price shot up to $48, then everything collapsed. In 2010/2011, there were allegations against JPMorgan regarding market manipulation. And now, in 2025/2026, the historic rally. Every time, it shows: the silver market can become brutally volatile.

If you want to invest, there are several ways: physical silver, mining stocks, ETFs like SLV or PSLV, leveraged CFDs, futures, or streaming companies. Each method has advantages and disadvantages. Physical is tangible but storage costs money. Mining stocks can rise disproportionately but are also more volatile. ETFs are easy to trade but charge fees.

The big question remains: will the silver price continue to explode in 2025 and 2026 or correct? My observation: as long as inflation remains high, industrial demand grows, and supply stays tight, silver has upside potential. But a strong dollar or tighter monetary policy can push the price down immediately. We’ve seen that live.

Investors should not underestimate the risk. Bank of America warns of “bubble-like” dynamics. My strategy: watch how the dollar and Fed policies develop, and then position accordingly. For long-term investors, the structural deficit and growing demand could be interesting. But in the short term, it’s a casino.