Silver Surges to $31 per Ounce, Outperforms Gold
The past week has been a boon for precious metals enthusiasts as both gold and silver have experienced a significant increase in value. On Saturday, May 18, a troy ounce of gold was trading at $2,414.71, while silver was priced at $31.49 per ounce. While gold's 2.3% increase was well-received, it was overshadowed by silver's remarkable 11.8% rise against the U.S. dollar.
Peter Schiff, a fervent supporter of precious metals, expressed his excitement about silver's performance, stating, "Silver is up over 30% so far in 2024, trading at its highest price since Feb. 2013. Silver is both a precious and an industrial metal. It's an even better indicator than gold that inflation is accelerating. The Fed is wrong and investors are delusional. Prepare for a crisis."
Market analysts and observers claim that they had predicted this moment. One commodities analyst wrote on X, "Been saying lately that silver will break out soon above the $30 level. Now it has. Realize that your future life depends upon making the most of this precious metals bull market. Then it is extremely important to also really understand that nothing matters but price. Absolutely nothing."
There are signs of a potential silver squeeze brewing, and social media platforms are abuzz with discussions on the topic. With silver expected to experience its fourth consecutive annual supply deficit in 2024, driven by the high demand for solar panels, the gold-silver ratio has decreased, indicating increased investor interest in silver as an alternative to gold.
"I've been waiting 13 years for this moment. #silver #silversqueeze," one person wrote on X. Interestingly, the spike in silver prices and the hashtag #silversqueeze emerged during the meme stock frenzy and Wall Street Bets era in 2021. The recent surge in meme stocks and the return of the so-called 'Roaring Kitty' seem to have rekindled the ambitions for a silver squeeze. Social media users have also taken note of this recurring trend.
While some, like Schiff, view the spike in silver prices as a warning sign of an impending crisis, others see it as a long-awaited opportunity in a robust precious metals bull market. The latest silver saga has captivated market observers and reignited the possibility of a coordinated squeeze reminiscent of the meme stock frenzy in 2021, adding an intriguing element to the unfolding narrative.
What are your thoughts on the alleged silver squeeze? Let us know in the comments section below.