➡ Silver is becoming increasingly important due to its use in solar cells, electric vehicles, artificial intelligence, 5G infrastructure, and smart devices. As these industries grow, so does the demand for silver, which is causing a strain on the supply. Despite the high demand, the physical silver market is showing signs of stress, indicating that silver is becoming harder to find. This could lead to a supply crisis, where even well-connected buyers may struggle to find silver.

➡ Silver’s value is increasing due to economic instability and uncertainty, making it a safe investment choice. This is because silver is not only a hedge against inflation but also against unpredictability and systemic cracks in the economy. Institutions are quietly buying up physical silver, anticipating chaos. The increasing demand for silver is causing its price to rise, and it’s predicted to continue to do so as more capital shifts into it.

➡ Silver’s price increase isn’t just about to happen, it has already started.

We’re high enough in the silver price for it to have very little upside resistance and to be able to just move, move and move some more. And it hasn’t started yet. And that’s got me scratching my head somewhat. You know, I again think it all. You’re watching Silver News Daily. Subscribe for more. Everything is converging. Surging industrial demand, geopolitical turmoil, tightening supply, and the quiet accumulation by deep pocketed institutions. Silver isn’t preparing for a move. It’s already in motion. And according to David Morgan, what’s coming next could rewrite everything we thought we knew about this market.

$50 isn’t a stretch, it’s a floor. When the short squeeze detonates and the market finally acknowledges the true value of silver, we could be looking at a rally that makes 2011 look tame by comparison. And it won’t be driven by hype. It’ll be driven by necessity, by the realization that silver is no longer just a fringe play, but a foundational asset in a world spinning out of monetary control. The window to act is rapidly narrowing. Once this breakout gains speed, the chance to get in below $35 will be gone, maybe forever. So if you’ve been waiting for the right moment, understand this.

It may already be behind you. Because silver’s breakout isn’t a prediction anymore. It’s a process unfolding in real time. And when the final piece falls into place, the rush won’t be subtle, it’ll be seismic. If you want to stay ahead of this unfolding story, make sure to subscribe so you don’t miss the next critical update. And remember, this is not financial advice. Always speak to a professional before making any investment decisions. Well, I put out a, an update for the premium service or paid subscribers and it was a view of gold as the, as the constant.

And what it showed was the S&P 500 and it showed the stock market be by that metric the s and P500 peaking around the year 2000. And it was a massive head and shoulders formation over know couple decade and a half or so. And what it indicated to me is that the asset allocation is starting to shift. Mike Maloney refers to it as wealth cycles. If you timed it, you wouldn’t have to time it perfectly. But it takes timing. Where you sell your gold, let’s say in 1980, you sell your gold at, at the top where the gold Dow ratio was one to one.

You invest all that money in the stock market and you ride the stock market from that 850, 873 whatever was low all the way up to, you know, X. And then at that point you sell your stocks and you buy gold and you write it, or you can use real estate or whatever. So the point I’m making is when there’s a massive reallocation of capital where most of it’s invested in equities and that moves into, let’s say, commodities, that shift usually is years in length. And I think that we may be starting that. Remember, I think I, I’m so sure I said it on your show, Liberty and Finance, probably, I’m going to guess maybe as far as two years ago.

And I said the run to gold has started. And what I meant was in those markets and there’s a, a curve that’s theoretical and also empirical, but it’s the idealized curve, I should say. It shows like how market’s operating. There’s a stealth phase where the early money comes in and accumulates, doesn’t really move the price. No one’s interested in that particular market. And then once the accumulation phase is over, it starts to be marked up and that’s where maybe some more, you know, smart money comes in. So the point I’m making is that central banks have been buying gold like crazy over the last couple years.

And now most people that are involved in the gold and silver markets are aware of that. And now this markup is starting to happen. And at the same time where I’m forecasting, you’re going to see a rollover in the equity markets. And that will force some people and some people be ahead of the curve, moving out of that, that element into commodities, with the money mills being lead, or at least gold being the lead. So that’s how I see it. That’s the big picture, that’s the one to pay attention to. Because if I’m correct, then this last phase of the gold market, which we entered once we broke around 3,000 or so, could have, you know, a few years left and it could be very dramatic.

Usually the last leg up of any market, real estate, stock market, commodities, is the biggest gain, percentage wise, usually in a short amount of time, relatively short amount of time. So we’ll see. And this is exactly the kind of setup that makes a short squeeze not just possible, but inevitable. For years, silver has been one of the most heavily shorted commodities in the world. Banks, institutions and leveraged traders have treated it like a controlled asset. Managing price with paper contracts, suppressing rallies with strategic selling, and keeping the illusion of abundance alive. But here’s the truth. That illusion is starting to break.

Rick Rule has called it out. Clearly, those who are too short, silver related vehicles like PSLV could be in for a religious experience. And history backs them up. We’ve seen this movie before in previous cycles. Once the physical market starts to tighten, an investor sentiment flips. Those short positions become untenable. You get forced liquidations, margin calls, a domino effect that turns an orderly market into a runaway train. And we’re already seeing the early warning signs. Backwardation, spiking lease rates, rising premiums, and swelling institutional interest. These are the footprints of stress. The shorts can manage price until they can’t.

And once that tipping point is reached, the entire dynamic reverses. Sellers become buyers. Shorts scramble to cover. And the price doesn’t just rise, it explodes. But there’s another layer. Retail investors, burned by false starts in the past, have grown complacent. They’ve tuned out the noise. They don’t realize that while they’ve stepped back, institutions have stepped in. That shift in positioning from weak hands to strong is the final ingredient. Because when the squeeze begins, it won’t just be a technical event, It’ll be a sentiment shock. A moment where the world wakes up and realizes that silver isn’t just undervalued, it’s unsustainably suppressed.

And when that realization hits, the scramble for physical metal will begin in earnest. Premiums will surge, supply will vanish, and the paper market will struggle to keep up with reality. The this is the moment everything changes. This is the setup. And the pressure is reaching its breaking point. More stagflation. I think, you know, I don’t think the tariffs are really a great idea. Some do. I don’t. I think that, you know, there’s going to be a deterioration in global economy. I’ve said for the last couple years we’ve seen more or less a contraction in the global economy.

And I think that will be the main trend. Within that trend, you may see a rebuild in the United States because of tariffs and bringing industry and manufacturing back into the United States because it makes more sense and it will revitalize, you know, the United States internally. I think that’s true, but I don’t think it’s to the level that maybe the administration anticipates. I just heard a great lecture. I forget the number, but if something like, I Forget it was 1500 industries that moved east, but they only expected like 10 or 20% would come back. I don’t know where they got those numbers, but I, I go along with that idea.

I don’t have any idea, if the numbers are correct. But the idea is that, you know, I don’t think Apple Computer is going to bring everything back in the United States. You just have too much time, effort and too good a well trained labor force force to manufacture what they do in China. In China, and then final assembly wherever they do it. So that’s how I see it. And if you look again at one more thing, and I put this out three or four times the last couple years on Twitter, you look at the amount of retail closures in the United States.

Not only like chain restaurants, like the, you know, Applebee’s and then the Bed and Bre or Bed, Bath and Beyond and all kinds of, you know, even stalwarts like Nordstrom’s, Macy’s. The amount of contraction in retail across the board, be it, you know, bathware, be it clothing, restaurants, it’s huge. And you just don’t come back from that kind of a trend by bringing back, you know, businesses that do better by manufacturing or producing the United States. It’ll help, but I think it’s not going to be measurable from the big, big picture. In other words, whatever happens two years from now will not be where the United States was at peak production.

And while the physical market strains under pressure, another relentless force is fanning the flames. Industrial demand. This isn’t the kind of demand you can simply slow down. It’s structural, it’s accelerating, and it’s being baked into the future of the global economy. Silver isn’t just a monetary metal anymore. It’s a critical industrial asset. And in 2025, that role is becoming impossible to ignore. Let’s start with solar. Silver is essential to photovoltaic cells. No substitute comes close in terms of efficiency. And as global mandates for net zero emissions tighten, solar production is being pushed into overdrive. The International Energy Agency estimates that solar capacity could triple in the next five years.

That’s not a forecast, it’s a mission. And silver is at the heart of it. Already the solar industry eats up nearly 20% of global silver supply. And that number is only rising. Then there’s electric vehicles. The EV boom isn’t coming. It’s here. And every EV contains more silver than a traditional gas powered car. Batteries, onboard electronics, charging stations, all of it requires silver. Multiply that by the global race toward electrification and you’ve got a surge in consumption that mines simply can’t keep up with. And we haven’t even touched on artificial intelligence, 5G infrastructure, or the rapid scaling of smart devices.

These aren’t future Trends, they’re present day realities. Each one of them leans heavily on silver’s unmatched conductivity, reliability and performance under thermal stress. Which means as these industries scale, so does the pressure on silver. What we’re witnessing is a transformation of silver’s demand profile. It’s no longer just a shiny hedge for nervous investors. It’s the backbone of the new industrial age. And that demand isn’t optional. It’s embedded in everything from climate policy to consumer tech. This is what makes today’s supply tightness so dangerous. You can’t throttle demand when the world is being built on it. And once the market realizes that, the retail markets really almost dead at this point for both gold and silver, particularly silver.

I talked to them and you know, talking to one major dealer, wholesaler doesn’t mean that I’ve talked to them all but I’ve talked to a few and you know, gold for example at the wholesale, I’ve been at Krugerrand for like you know, five or ten bucks over spot. I mean ridiculously cheap just because they rather get the cash and not not have to carry the loan that they’re required to get from the bank to carry the inventory. Anyway, back on point, Elijah, I think Silver Squeeze 1.0 was pretty successful. Moved the market started to make a lot of ripples in the market.

A lot of people on X were talking about it and then Roth and Benham came out and said you know, tamp down at silver market. And then things kind of subsided. This time my take Monday will tell. I don’t think there’s going to be much to it could be, might be surprised but the, a lot of retails either selling back or sitting on their hands either think that you know, 34 silver’s too expensive or they bought it at 25 with a high premium, you know, a year or two ago and now they’re seeing well okay, I got a, you know, four dollar profit.

You know, I don’t think it’s going any higher. I’m going to sell whatever. I don’t, can’t read everyone’s minds but I can see, I know what the market’s doing very little on the retail side. On the other hand banks just keep buying you know, gold particularly, you know, even Russia announced what a couple months ago they’re buying silver for a strategic asset, I don’t have to use that word but they’re buying the other metals. They’re buying platinum plated and silver. So there is a market for, for it. And it’s unusual to see you know strength in these metals prices without retail participation.

And what usually happens is that there’s a oh my, that my, my moment, oh my, look, gold’s really going, I don’t have any, I’m gonna have to buy some or I sold the house, I don’t know where to put the money. I’ll buy gold or that type of thing. So I think we will see a re entry into the markets, the precious metals markets via the retail side. But I think it’s going to take some type of shift in thinking. I think the people that are in it are more or less burnt out or just holding on to their gains waiting to see how high it’ll go.

And we need new, a new input into the market which I just outlined here will be because a lot of these stock investors that made big profits or starting to lose now got in late and say you know what? And gold keeps moving up. They’re going to go well you know what? I know what’s moving up. Gold is so it will come back. I just don’t know when. SA but here’s where the story takes a more urgent turn. Because while demand is surging, the physical silver market is flashing stress signals that are impossible to ignore. Let’s start with lease rates.

The one month lease rate in London is still sitting above 5% down from its February spike, but historically elevated nonetheless. That kind of number doesn’t happen in a healthy market. It’s a sign that physical silver is getting harder to come by fast. And then there’s backwardation. For anyone not familiar, that’s when the spot price of silver trades higher than future delivery contracts. It’s rare, it’s extreme and it’s happening now. Why does that matter? Because it tells us that buyers are willing to pay more to get silver today than wait even a few months. That screams one thing.

Immediate scarcity. Even the warehouse data, which on the surface looks like a 47% year to date increase in stockpiles, tells a different story. When you dig deeper, that silver isn’t surplus. It’s defensive positioning, front loaded inventory building ahead of geopolitical shocks. Arbitrage flows from overseas. It’s not the kind of stockpiling that eases pressure. It’s the kind that tightens the noose. And here’s the kicker. High quality bars are commanding elevated premiums. Physical dealers are starting to struggle to meet demand. This isn’t just a supply issue, it’s a trust issue. Investors are moving away from paper claims and toward real metal in hand.

They’re waking up to the fact that in a stressed system possession isn’t just nine tenths of the law is the whole game. And if the current trend holds we’re heading toward a full blown supply crisis. A point where even the most well connected buyers start asking where’s the silver? I think it’s going to go higher. I think it will catch up with gold eventually. Silver squeezed 2.0 I’m calling it. I don’t know, there was one on X, I can’t find it. But some gentleman, I guess he’s a tech entrepreneur, made a pretty big physical purchase and it was on, on my feed on Twitter this morning or X, however you say it, which is one big slug but it’s not enough to move a market.

But I don’t know, I don’t think, I think we have some waiting for the retail market. As I said earlier, we’re basically free. I mean we’re high enough in the silver price for it to have very little upside resistance and be able to just move, move and move some more. And it hasn’t started yet. And that’s got me scratching my head somewhat. But you know, I again think it will take place and it may come out of the blue, you know, maybe waiting for the tariff thing to, you know, assert what’s the real truth. You know, if you’re a Canadian company, you mine in Mexico, silver comes across the border, is it, you know, tax it or tariff to 25% probably, I don’t know but no one knows for sure.

That’s the problem. We really haven’t had a great definition. And then you know, they put the tariff on and then they take it off. So again, quite wishy washy. Yeah, that’s a signal and the retail will come back. It’s just when, and I think it’s what I said earlier when the, you know, if they get tired of losses in the stock market or maybe, you know, I’m starting to lose some of my gains, I think I’m going to shift people look for what’s moving. And the gold market’s really gotten a lot of news in the mainstream press over the last few months.

New high, new high, new high. And so this will start to creep into the consciousness of the average investor that’s never thought about gold before and they will come into the market. Volume. I just need to see, you know, volume in the market that when I talk to these wholesalers they’re saying yeah, you know, we’re getting seen, things are picking up, start people are starting to buy, people are moving IRAs out of, you know, maybe they had a real estate investment trust in their IRA and they sold that, and now they want to move into gold, you know, that type of thing.

But, you know, to the best of my ability, speaking today with you, Elijah, it hasn’t happened or it’s not started. It’s not started significantly enough to be able to measure it. Now throw geopolitics into the mix and you’ve got the spark that could ignite this entire setup. Over the weekend, Trump reignited fears of a global trade war, announcing a sweeping new round of tariffs set to hit by Wednesday. Markets are already rattled, but here’s what most people miss. Aggressive tariff policies don’t just stir up inflation. They also hammer the dollar. And when the dollar takes a hit, silver surges.

Why? Because silver is priced in dollars. The weaker the dollar, the, the more valuable silver becomes in global terms. But it goes deeper. These tariffs are more than just policy moves. They’re economic pressure points. They trigger retaliations, they ripple through global supply chains. And in the middle of all that chaos, investors start to panic. They flee risk, they run to safety. And this time, that safe haven isn’t just gold. It’s silver. Why? Because silver is not just a hedge against inflation. It’s a hedge against uncertainty, against instability, against the kind of systemic cracks we’re watching open in real time.

And we’re not talking theory. We’re already seeing Silver Climb $34.35 and rising as these geopolitical tensions unfold. That’s not random. That’s the market reacting before the headlines even catch up. This isn’t just some minor uptick in safe haven flows. It’s a warning shot. It’s the market saying the world is becoming unpredictable and silver is the place to hide. And the more this geopolitical chaos spreads, the more pressure it puts on currencies, on central banks, and on the fragile confidence holding this whole system together. Silver isn’t just reacting, it’s preparing. And that preparation is about to go parabolic.

Usually the, you know, government that governs least governs best. I mean, we do need some regulations and some ground rules and some objectives. But I think that the more convoluted it gets, the more it gets wrapped around the axle becomes more and more cumbersome. So, for example, I talked to some Canadian friends yesterday, and the last couple liquor stores he went into, the proprietors have removed all the United States based liquor. It’s all Canadian whiskey. There’s no US Whiskey and whatever else. So it gets to be you know, I call a trade war for a reason.

And so this really doesn’t help. There are ways to, to make it better. And the whole thing is, you know, have we really implemented these tariffs? And the answer is, well, it’s been kind of wishy washy so far. And is it going to be, you know, aluminum and steel and it’s not going to be the precious metals? We really don’t know. It really has been well defined. And then if something is manufactured in the United States, final assembly takes place in Europe and then it’s imported in the United States, do you have to pay a tariff on that? I mean, it’s going to get, I think, very interesting going forward to see what really happens and what the blowback and the unintended consequences that come to the fore will be and what the administration may be backpedaling, let’s say six months from now.

Elijah say, well, wait a minute, you know, we didn’t mean for this to occur. Therefore this tariff is going to be, you know, we did this or it’ll be, won’t happen or whatever. I like a level playing field, but as I just mentioned previously, those are almost impossible in today’s world. Behind the scenes, the real story isn’t in the headlines. It’s in the hands doing the buying. And right now, those hands belong to institutions. Quietly, methodically, they’re scooping up physical silver, loading up on PSLV and positioning themselves before the chaos becomes visible to the masses. David Morgan’s been tracking this pattern for years and now it’s accelerating.

The big money is getting in, not with flashy announcements, but with silent conviction. Take PSLV for example, the Sprott Physical Silver Trust. While retail investors are busy watching price charts, institutional players are accumulating, creating pressure on the physical supply without triggering retail panic. Rick Rule even warned that if traders remain too short on pslv, they could be in for what he calls a religious experience. A violent short trap that punishes the complacent. That’s not hyperbole, it’s history repeating itself. We’ve seen this with Pan American Silver, Silver Standard and others. When the shorts get too confident, silver doesn’t just climb, it detonates.

This kind of stealth buying isn’t happening by accident. It a strategic front running of what’s coming next. The industrial demand is visible, the monetary chaos is visible. But the repositioning of capital from traditional assets into physical silver, that’s the quiet storm. Institutions aren’t gambling. They’re hedging against a system they no longer trust. And as more capital shifts into silver, the supply gets tighter, the premiums rise and the fuse shortens. Once retail wakes up, the move will already be underway and the price won’t be anywhere near $34. Well, it’ll be perceived that way. I mean whatever tariffs are enacted and actually come to fruition, they’ll be passed on the consumer.

So if I’m an importer of glassware and I got a 25% tariff, then when I do a stained glass job for a church, I’m just going to factor that into the cost of doing business and the customer is going to have to pay for it. And they’ll see that as inflation, that the price went up. Well, it really came from a tariff, but all they see is an increase in price of 25% and, and they’ll call it inflation. So it doesn’t help. There’s some, maybe rare cases you can make at point. But being, you know, pretty much geared to the Austrian school, I mean I’m not a hundred percent.

I think there’s flaws in all these systems. I think the Austrian system is the most fair and objective as far as telling the truth about how an economy really works. But you know, if you say okay David, what do you want? I said, well I want a free market. But what’s a free market these days? If you look at the Chinese building these electric cars cheaper than anybody else. But why? Well one is a very efficient. But another reason is they’re subsidized. So if you’re subsidized, that’s kind of an anti tariff. So now if they’re able to put out a product for make a ridiculous number, 15,000 for brand new EV and Tesla can only do it for 40,000, you know who was subsidized the most? Tesla was subsidized because of the green energy credits.

China was subsidized by the government. So what’s the true free market price? It’s hard to determine, but if you were able to determine that, that would be the fairest for everybody. Because the idea of free market capitalism is that if you make a better X than I do, then you’re going to win in the marketplace because it’s a superior product. It costs less, it lasts longer and people like it more. But those days are pretty much gone with planned obsolescence, subsidies, as I mentioned, tariffs, etc. So it’s a tough one for me to say other than from an intellectual exercise, what works? Because in the real world none of that’s really taking place.

Silver isn’t just volatile, it’s explosive. And that’s exactly what gives it the edge. Unlike gold, which tends to move with calculated precision, silver has a history of erupting out of nowhere, blindsiding the market, and delivering gains that make gold look tame. David Morgan and Rick Rule have both pointed out this very trait. Silver is the high octane cousin in the precious metals family. Rule calls it a speculative instrument. And he’s right. When silver moves, it moves late, but violently. And that’s not a coincidence. That’s how silver behaves in every bull market. Think back to 1980 and 2011.

Gold broke out first, grabbing headlines and investor attention. But silver. Silver lagged. And then it launched. In just a matter of months, it went from under $10 to nearly $50. This isn’t just historical trivia, it’s the roadmap. And right now, we’re following that same path. Gold has already surged to new highs. Silver, once again, is the forgotten player, the underdog. Until it isn’t. This kind of delayed reaction is exactly what sets the stage for an explosive rally. Because while gold draws in the cautious, silver lures in the bold. And when that generalist money comes flooding in, when funds and traders start rotating into silver as the next play, that’s when the fireworks begin.

But here’s the kicker. This time, the conditions aren’t just similar. They’re more extreme. The gold to silver ratio is still hovering above 90, signaling a massive undervaluation. And every time this ratio has reverted to the mean, silver has gone parabolic. It’s not a question of if anymore. It’s a question of when. It’s happening again, but this time, it’s bigger, faster, and far more dangerous. The silver market is winding tighter and tighter, and the pressure building beneath the surface is unlike anything we’ve seen in over a decade. Prices are surging toward $35, institutions are quietly loading up, and central banks are creating chaos in every direction.

But here’s the thing. They don’t want you to see what’s coming. David Morgan has been warning about this for years. Now the dominoes are lined up, and just one spark could trigger a short squeeze so violent, it would shatter $50 like glass. From trade war tremors to a tightening physical supply chain, the signals are blinking red. So why are the biggest players suddenly diving into silver? What do they know that the mainstream media refuses to talk about? And more importantly, why could retail investors be caught completely off guard right before the explosion? Stay with me, because by the end of this, you’ll understand exactly why Silver’s rally isn’t just coming, it’s already begun.
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