➡ The article discusses the recent volatility in the silver market, with a significant drop in price followed by a quick recovery. It suggests that this volatility is not a sign of a weak market, but rather a reset before a potential major increase in silver prices. The article also mentions that despite the recent price drop, demand for silver remains high and supply is limited. It concludes by suggesting that we may be at the start of a significant revaluation of silver, with prices potentially reaching much higher than previously thought.
➡ Silver clawed back a third of its losses quickly, showing that capital is being invested while sentiment is still fragile. This rebound hasn’t been driven by new speculation, but by traders covering their short positions. Big institutional money, like hedge funds, are still waiting for a signal that this isn’t just a bounce, but the start of something bigger. Meanwhile, silver is forming a pattern that could lead to a significant increase in value, but it needs to build pressure between $75 and $92 before it can break out.
➡ Silver mining stocks are holding steady despite market debates about silver’s value. There’s a shift of physical silver from forced sellers to institutional vaults, indicating a strategic move. The physical market is tight, with buyers willing to pay more for immediate silver rather than waiting for future delivery, a condition known as backwardation. Despite a recent rebound in silver prices, the futures market participation is still light, suggesting that a confirmed breakout above $92 could attract a wave of capital.
➡ The value of silver is rising, even as the US dollar strengthens, which is unusual as they typically have an inverse relationship. This suggests a strong demand for silver that isn’t just driven by currency fluctuations. The gold-silver ratio, which indicates how many ounces of silver it takes to buy an ounce of gold, is also important. Currently, it’s around 60 and has been declining since mid-February, showing that silver is outperforming gold. However, if the ratio increases, it could slow silver’s momentum and signal a shift back to gold.
➡ The article discusses the current state of the silver market, highlighting that despite a recent crash and rebound, major market players are not heavily involved. This lack of involvement is seen as a positive sign, as it suggests there is potential for significant growth if these players decide to invest. The article also discusses the challenges of managing a logistics operation in the current market, emphasizing the importance of hedging to protect against price fluctuations. Finally, it predicts a period of stability for silver prices, with potential for a strong breakout if the market conditions are right.
➡ Silver News Daily is hosting a giveaway of 10 ounces of real silver. To enter, you need to subscribe to their YouTube channel, comment on three videos, and join their Telegram group. They believe that if the price of silver surpasses $92, it could trigger a market shift, potentially leading to prices over $100. They also discuss the potential decline of globalism and the rise of local currencies, suggesting that this could impact the value of silver and other precious metals.
➡ The big players in the market are controlling the price of silver, which has seen a 47% drop and a 32% rebound, showing real demand. The price of silver is expected to rise from $75 to $92, and then possibly to $100 and $121, as more institutions invest. This is due to silver’s importance in industry and the instability of global money. The increase in price won’t happen immediately, but the signs are there that it’s starting. This isn’t financial advice, but a prediction based on market trends.

Margin hikes don’t end bull markets in metals. In my mind, they usually mark the point where the next leg higher becomes inevitable. Because now it’s in strong hands. You had the one day, biggest one day drop in in silver maybe ever. The very next day, SLV takes in the largest one day metal inflow in years. That’s institutional metal training. You’re watching Silver News daily. Subscribe for more. Everyone thinks the silver story already happened. They think the blow off top at 1:21 dol in January was the climax. The crash to the low 60s was the collapse. And this rebound back into the 80s is just another dead cat bounce before reality sets in.

But what if that entire sequence was not the end of the move? What if it was the reset before the most aggressive repricing silver has ever experienced? Andy Shechtman is now making what may be his most aggressive call yet. Not $100 silver, not even $200 silver. He’s talking about $1,000 silver being inevitable. And before you dismiss that as hype, look at what just happened. A 47% collapse in less than two weeks, then a 32% recovery almost immediately after. That kind of volatility doesn’t happen in sleepy exhausted markets. It happens when pressure is building underneath the surface.

Silver didn’t just drift lower after $121. It was violently forced down to $63.85. Flushing out leverage, liquidating weak hands, shaking out late buyers. That type of washout is what resets positioning. It clears the board. It creates the conditions for something much bigger. And now price is climbing again, pushing back toward the mid-80s. While most investors are still traumatized from the drop. Here’s what makes this moment different. Silver is rising even as the dollar strengthens. Physical demand is tight enough that futures are trading below spot. Hedge funds are barely positioned. Miners are holding up better than the metal itself.

And March is now directly in front of us, with silver pressing against technical levels that historically precede breakouts, not breakdowns. So the real question isn’t whether Silver can revisit $100. The real question is whether we are standing at the early stages of a structural repricing that eventually forces the market to recognize silver not as a twenty dollar metal, not as a $50 metal, not even as a $100 metal, but as something radically undervalued relative to currency debasement, industrial demand and physical scarcity. Because if Andy is right, March isn’t just another month on the calendar. It’s the inflection point and the volatility we just witnessed may look small compared to what’s coming next.

You put a floor under the price and then you zoom out. You look at COMEX registered as the delivery pile, which is massively lower than a few years ago. And the LBMA is being bled dry. You know, demand is rising, supply is constrained, and the world is treating silver like it’s a strategic input. They’re admitting this right now. And so I think that, you know, when governments start stockpiling, the message is simple. The scramble for the real stuff has begun. And if that’s really what they’re going to do, you better clean up your balance sheets. If you’re wickedly short.

Maybe that’s what this was about. But I can tell you that nothing changed. There are no fundamentals that changed at all. In fact, maybe they’re even getting stronger. And what I mean by that last thing, and I’ll take any questions that you have, the March silver contract is really shaping up to be really interesting. Right now, the March silver contract, open interest, meaning contracts that could stand for Delivery, is between 80 million and 81 million. Right around 80,500,000 contracts opened interest. Now, I suppose that kind of sounds abstract until I tell you that each contract is 5,000 ounces of silver.

So that’s over 400 million ounces of paper silver that is tied to the March contract. The first day that they can stand for Delivery is the 27th of this month. So two and a half weeks away. But if you compare that to what is actually sitting in the COMEX, the registered category as of yesterday is 103.5 million ounces registered, meaning ready for delivery. Metal is one out of every four. Is that right? One out of every four ounces, 402 million ounces could stand for delivery, standing against 103.5 million ounces. Now, typically, most of these contracts will roll forward or cash settled.

But if even 10% of the March open interest stands for delivery, that’s 40 million ounces. If 20% stands, that’s 80 million houses. Suddenly, you’re looking at a massive chunk of the registered category and the market has to react. So the bullish bet isn’t that COMEX defaults. I think it’s simpler. I think it’s the price of immediacy rises, backwardation, the spreads tighten and the market has to pay up or pull metal out of the eligible category, which is the other side of COMEX, which right now has 294 million ounces. So we have a Brinks account in New York City.

Jfk, One of our eight Brinks facilities. That’s Comex. It’s the only one of our eight Brinks facilities that is a COMEX facility. And we have plenty of people with thousand ounce bars in those accounts. Those are eligible. They’re not. When silver touched $121 on January 29, the mood was euphoric. Analysts were scrambling to revise targets. Higher retail investors were piling in and headlines were framing it as the beginning of a runaway bull market. But what happened next was brutal. In just days, silver collapsed nearly 47%, plunging to $63.85 by February 6th. Almost half its value erased in less than two weeks.

That kind of move doesn’t just shake confidence, it detonates it. But here’s what most people miss. Violent collapses like that are not random. They serve a purpose. They clear leverage. They wipe out weak hands. They force overextended longs to liquidate and push late buyers out of the market in panic. When a commodity crashes that hard, that fast, it resets positioning in a way slow declines never could. It’s surgical, it’s ruthless. And historically, it’s often the precondition for the next leg higher. Look at past commodity supercycles. The most explosive phases are almost always preceded by a deep, confidence shattering correction.

The market has to break belief before it can rebuild it. And that’s exactly what January and early February did. Anyone who bought into the hype at the highs was punished. Anyone trading on margin was likely wiped out. The froth was burned away. What remains now is something far more interesting. The emotional excess is gone. The leverage is reduced. The narrative has shifted from euphoria to skepticism in record time. And that psychological reset is critical because sustainable, powerful rallies are not built on excitement. They are built on disbelief. The collapse to $63 wasn’t just a price move.

It was a structural reset. It forced the market to reprice risk, to flush out overexposure and to test how much real underlying demand exists. And what happened immediately after that test is what should have everyone paying attention. Instead of drifting lower, silver snapped back hard. The crash was violent, but the rebound was just as telling. And that rebound is where the real story begins. One of the reasons we left our company in Minnesota, our corporate office is even though I’m in Florida where we’ve had this satellite office for 15 years, I could have moved it out of Minnesota, out of the craziness there and so save money.

But I left it there because we’re held to a higher standard through licensing, bonding, continuing Education, compliance. And this has not been brought to my attention anywhere and I’ve looked for it and can’t find it. Now, there are several of these Asian guy channels. The one that I follow that I think has the best information, at least so far. Again, I haven’t followed all of them, but the og, John Agee, the original John ag, he’s one I follow. He didn’t say this. It was someone else that I don’t know. I can’t see in any words, created nothing but anxiety.

And I can’t even figure out why they would have said it other than maybe try to get people to sell before this mandatory reporting comes in. But to my understanding, to my own research, to everything my compliance department has told me, there is no such thing law that has been placed and it’s for whatever reason, misinformation. As far as I can tell, after collapsing to $63.85 on February 6th, silver didn’t drift. It didn’t grind sideways. It didn’t spend months trying to repair the damage. It reversed with force. Within days, buyers stepped in aggressively, and by February 20, the price had surged back toward $84.

That’s roughly a 32% recovery off the lows in a matter of weeks. In most markets, that kind of rebound takes months. In Silver, it happened almost immediately. That speed matters, because fast recoveries after violent liquidations tell you something critical. There was real demand waiting underneath. When a market is fundamentally broken, rebounds are weak, slow, and fade quickly. But when a market is structurally tight, when physical buyers are active and larger players are watching key levels, sharp drops become opportunities. And that’s exactly what this looks like. Think about the psychology. After a 47% collapse, confidence should be shattered.

Traders should be hesitant, momentum should be exhausted. And yet silver clawed back almost a third of its losses in record time. That is not apathy. That is absorption. That is capital stepping in quietly while sentiment remains fragile. But here’s the nuance. This rebound has not yet been fueled by a surge in fresh speculative participation. Open interest on Comex has actually been declining even as price has risen. That means much of this move has been driven by short covering. Traders who were betting on further downside are being forced to buy back positions, adding fuel to the upside.

It’s mechanical, it’s reactive, and it has limits. So we are now in a fascinating transition phase. The forced sellers have been cleared, the shorts are covering. Price is pushing back toward major technical levels around the mid-80s. But the big institutional money, the hedge funds that typically amplify these moves are still largely on the sidelines. They are waiting for confirmation, waiting for structure, waiting for a breakout signal that tells them this isn’t just a bounce, it’s the beginning of something much larger. And that brings us directly to the technical structure forming beneath the surface. Because what silver is building right now is not random noise.

It’s a pattern, one that if confirmed, could act as the launch pad for the next leg. Higher Just before we get going, we just launched the official Silver News Daily Telegram. To kick things off, we’re running a 10 ounce silver giveaway. Yes, real physical silver. Not a voucher, not digital credits, actual bullion. This telegram will be our new home for real time silver discussions, market insights, collection picks and everything. Precious metals. It’s where the community truly comes alive. Here’s how to enter the 10 ounce silver giveaway. Be subscribed to Silver News Daily on YouTube. Turn on the notification bell, comment 10 ounce giveaway on three separate videos, be an active member of the Telegram group and say hi.

Once we hit 500 Active Telegram members, we’ll pick one lucky winner to receive 10 ounces of silver shipped directly to you. So get in early, stay active. I guess it’s just a frosting on top of the BU or the uncirculated. The BU coins that we sell, the commercial strike, I guess just don’t have this frosting, which is nearly impossible to discern between the two. In essence, it’s lipstick on a pig. And there’s no reason to buy the uncirculated coin from the US Mint because the brilliant uncirculated coins, uncirculated being the U in BU that you’re getting from any dealer like myself is just a better value.

I guess if you’re collecting it as part of a set where you’re collecting the proof and the the uncirculated coin as issued by the Mint, one set or whatever each year. Fine. But again, anything that you’re buying from the Mint is not really economical from the standpoint of building your core position. It’s more along the lines of things that you want to collect. And most of those things won’t return their value. Some of them will, I guess. Some of them are made in very small quantities and maybe they will, but certainly that’s kind of the sprinkles and the hot fudge top of the vanilla ice cream, which would be just the normal commercial strike where you’re getting more content rather than frosting.

Now this is where things become technical, but also extremely important. From the November 21st impulse move, all the way up to the January 29th peak at $121.00, silver printed a powerful vertical expansion. That was the cup forming. Then came the brutal retracement, down to $63.85 on February 6, carving out the rounded bottom of that structure. And since then, price has been climbing back toward the mid-80s, approaching what technicians would call the neckline of the formation. Right now, that neckline sits around $84. A clean daily close above that level begins validating the cup structure. But the real trigger, the level that forces institutions to pay attention, sits between $91 and $92.

That’s the previous lower high. That’s where supply overwhelmed price during the initial rebound attempt. And that is the line that separates consolidation from breakout. If Silver pushes through $92 with conviction, especially on rising participation, the entire structure transforms. The cup completes a handle forms through consolidation between roughly $75 and $92. And once that handle resolves upward, the measured move projections begin targeting $100 almost mechanically, not emotionally, not speculatively, structurally. But here’s the subtle warning embedded in the chart. Momentum, as measured by the RSI has been forming a higher high, while price has printed a lower high during this recovery phase.

That’s a hidden, bearish divergence. It doesn’t mean collapse is imminent. What it suggests is, is pause compression, a coiling of energy before the next decisive move. In other words, silver likely needs to spend time between $75 and $92 building pressure. This is not weakness. This is construction. Markets do not explode sustainably without building a base. The wider and more stable that base becomes, the more powerful the breakout tends to be. So when people see consolidation in March, they may interpret it as exhaustion, but in reality, it may be the market assembling the Launchpad. And if $92 breaks with volume and fresh institutional capital stepping in, the shift from short covering rebound to full scale expansion could happen very quickly.

For sale they could be because they are Comex eligible. They’re in the ecosystem. But no one’s going to sell on my side. And all the people that are holding them ineligible, that’s not for sale. So even if all of that metal went in, you’re talking right now 294 and 103. You’re about 99% of open interest right now, and it’s all gone. But most of that eligible stuff isn’t for sale. The point I’m getting at is that you see what’s happening in London. We see that, we’ve had talk to David Jensen, talks about 2 billion ounces of open interest contracts standing against 120 billion doll 20 million ounces of physical.

You see it right here, 103 million ounces of physical that is standing behind 4 million ounces or 400 million ounces of potential delivery. You see the exchanges being bled dry in Shanghai. You’re seeing games being played on the ETFs, you’re seeing margin hikes. And all along the big money doesn’t give a flying. You know what, they just keep standing for delivery. It’s the biggest. The traders who think that they can play in this sandbox with these people who are money doesn’t mean anything to them and you may be very well heeled. Our company is very well heeled with the ability to have a massive inventory and the margin requirements needed for it.

But if it kept going up, how much can we post? At what point does it just destroy the ability to maintain an inventory? So what they’re doing is they’re squeezing out the players who think that they’re big enough to play in this game. And really what is happening is you are seeing a strategic repricing that is forcing out the speculators and putting it into the hands of the big money who is standing for delivery. What more do you need to see but that it’s painful, it’s scary. Fear is a very, very strong emotion, probably the strongest.

And when you see this fall, you get emotional. This is why there’s Elliott Wave theory and Kendra. The mass emotions of the herd. Separate yourself from your emotions and look at the reality. Nothing’s changed. In fact, every day it’s getting more and more and more obvious that this is where you need to be now. What just happened was contrived. It’s bs. Should have never. While silver itself has been rebuilding its structure, something even more telling has been happening beneath the surface. The mining stocks moved first. The Global x Silver Miners ETF trading above $107 recently actually peaked at $119 on January 26th.

Three days before spot silver topped at $121. That detail matters more than most people realize. Miners are not just leveraged bets on the metal. They are forward looking businesses. They see order flows, they see industrial contracts, they see supply constraints and production costs in real time. When miners lead on the way up and then refuse to completely collapse during a correction, it sends a message. It suggests that the underlying fundamentals remain intact even if price temporarily disconnects. During the crash, from $121 down to the low 60s, miners did not disintegrate in the way you would expect if the bull market was truly over.

Yes, they pulled back, but they held structure far better than the metal itself. And now as silver consolidates in the 80s, miners are already stabilizing and attempting to turn higher again. Historically, this sequence is important. In past bull cycles, miners often begin outperforming before the most aggressive phase of the metals move. They are like an early warning system when capital quietly rotates into mining equities before a confirmed breakout and spot, it suggests that smart money is positioning ahead of the crowd. And think about the leverage embedded here. If silver moves from $80 to $100, that’s a meaningful gain.

But if silver moves from $80 to $120 or higher, miners don’t just rise proportionally. Their margins expand exponentially. Production costs stay relatively fixed, while revenue per ounce increases dramatically. That operating leverage can turn a 20% move in the metal into a 50 or 100% move in select equities. So while the market is debating whether silver can even hold the eighty dollar level, mining stocks are quietly holding their ground. They peaked early, they absorbed the crash, and now they are stabilizing before spot has even confirmed a breakout above $92. That is not random behavior. That is leadership.

And leadership in bull markets tends to precede acceleration, not collapse. The only one who can create those shares, and they can only do so by delivering physical metal first. So think about really what that means. Silver gets smashed and immediately after the smash, tens of millions of ounces show up inside the etf. This tells you that someone with a real balance sheet used the forced liquidation, this margin event, to source physical metal cheap and park it where they control it, and they control it inside of the ETFs. And this is metal migrating from forced sellers to the institutional vaults.

Because these institutionals can do what’s called share redemption and they can redeem their, their shares. If you’re an authorized participant in metal, and it’s far more opaque than it is transparent, and it’s just another mechanism they have to drain physical metal out of the ecosystem. But when, when you line up the delivery pressure that we’re seeing, the tightness in the registered inventories, which I want to talk about in a moment, the all of this stuff, including what’s going on in the ETFs. This is not normal flow. That’s inventory reshuffling under what I think is major stress.

And Richard Russell used to say something like this to me. He used to say that markets don’t reveal themselves during the violence. They Only reveal themselves after and where price is the weapon freaks everyone out. But the inventory is the confession, the confessions. We really don’t have it. But we need to freak everyone out by flushing them out with price and margin increases. But nothing has changed. In fact, now you get into this project vault that’s come up where you got the US government that is acting very much like silver is not plentiful. It’s acting like it’s strategic.

Of course they call it a strategic metal. Right now we’ve had six straight years of a deficit. Of course it’s been added to the critical mineral list. But now you got this project vault, a brand new US critical mineral reserve. It’s obvious that they’re worried about disruptions and they call it a public private structure designed to stockpile essential raw materials inside the United States to protect supply chains. That means they want to incentivize domestic mining also. Now we move into one of the most underappreciated signals in this entire setup. And that’s what’s happening between the physical market and the futures market.

Right now. Comex silver futures are trading below the spot price. Spot has been hovering around $84 while futures contracts are closer to $82. That condition is called backwardation. And in silver, it’s rare. Normally, futures trade at a premium to spot because of storage costs, financing and time value. That’s the natural state of commodity markets. But when futures fall below spot, it signals something unusual. It signals urgency. It tells you that buyers are willing to pay more to secure physical silver now rather than wait for future delivery. That’s not a paper phenomenon, that’s a supply signal. Backwardation tends to appear when there’s tightness in the physical supply chain.

When refiners, manufacturers or large buyers need metal immediately, they bid up spot relative to futures. And that dynamic creates stress beneath the surface. It suggests that while traders may be hesitant in the paper market, real world demand hasn’t disappeared. But there’s another layer to this. At the same time, silver has been rebounding from $63 to the low 80s. Open interest on Comex has been steadily declining. Rising price with falling open interest is the textbook signature of short covering. Traders who were aggressively short after the crash are buying back positions, pushing price higher. But without fresh speculative money entering, this creates a temporary ceiling.

Short covering rallies can be powerful, but they are self limiting. Once the shorts are finished covering, the market needs new buyers to take control. And that’s where we are right now. The physical market is tight. Spot is commanding a premium. But the Futures market participation is still light. That divergence is critical because when you have physical stress building at the same time institutional money is underexposed, you create a scenario where a confirmed breakout above $92 doesn’t just attract incremental buyers, it attracts a wave of capital that suddenly realizes it’s behind. Backwardation is the whisper. A breakout would be the shout.

Margin hikes don’t stop physical demand. What they stop is paper leverage. And they force the weak hands out and they reduce the ability to run giant positions just on thin collateral where you can control massive positions by having a small margin account. And so yes, you will get a paper flush when this is implemented like we saw. And futures can and did drop when the leverage traders are forced to liquidate. But that’s not the end of the bull market. That’s the shakeout. And the people that have been standing for delivery as I’ve been really screaming about for quite some time now, for 15 straight months, they’re not using margin.

And so these are the big money, the banks. Could it have been a one last attempt to bail out some of these US banks who still had. Now we’ve been talking about the commitment of traders report that said the US banks are net long. We’ve talked about the report that came out of the Economic Times that said the banks are net long. But being net long doesn’t mean long only that means you have more long than you do short. Now, could this massive price rise and all of this attention that we’ve been seeing on silver precipitate some concerns by some very big players in the coordinated fashion they raise margins and smack the crap out of it? Yes, but what they really did was they chased leverage out of gold and silver.

And when you do that, you don’t make those that are holding said metal weaker. In my opinion, you’re putting it into stronger hands. And so that’s kind of the tell to me. Margin hikes don’t end bull markets in metals. In my mind, they usually mark the point where the next leg higher becomes inevitable because now it’s in strong hands and the price is now moving up. I want to give you kind of what I mean by that too. So this is kind of one of the moments where the market confesses and you had the biggest one day drop in silver maybe ever.

And everyone got emotional. People are screaming and panic and they assume demand vanished. But this is how these idiots work, okay? The very next day, SLV takes in the largest one day metal inflow in years. Dunnigan, that’s not panic buying. That’s institutional metal transferring at a discounted price. And what I mean by that is that you had 550 million shares outstanding the day before, it dropped. The day after, it goes to 587 million. So that’s a 36.3 million new shares that were created at roughly 0.905 ounces per share. That’s about 33 million ounces of silver added in one day.

And the authorized participants. Here’s where the transition becomes critical. The rebound from $63 to the low 80s has largely been fueled by short covering. Traders who piled into short positions during the crash were forced to buy back contracts as price stabilized and began climbing. That mechanical buying pressure can create sharp upside moves, but it has a ceiling. Once the shorts are out, that fuel runs dry. And the data confirms this. Open interest on Comex has been declining even as silver has risen. That tells us new speculative longs are not aggressively entering. Yet the big hedge funds, the commodity trading advisors, the institutional players who drove silver toward $121 in January, are still largely on the sidelines.

Managed money net longs are sitting near just over 5,000 contracts, a fraction of what we saw during the run to the highs. This is not overcrowding. This is underexposure. Now think about what that means structurally. If silver were already extended heavily long and driven by euphoric positioning, the risk would be obvious. But we’re looking at a market that just flushed leverage, cleared weak hands, and now sits with minimal speculative participation. The next sustained push, higher, cannot rely on short covering. It requires fresh capital. And fresh capital doesn’t move quietly. It waits for confirmation. That confirmation likely sits above $92.

That’s where the cup formation completes. That’s where the narrative shifts from dead cat bounce to confirmed breakout. And when that level breaks, hedge funds that are currently underweight will not trickle in. They will reallocate aggressively to avoid being left behind. This is the difference between a reactive rally and an expansion phase. Short covering is reactive, institutional accumulation is proactive, and we are sitting right on the threshold between the two. If new money steps in while physical tightness remains and miners are already stabilizing, the market dynamic changes completely. The ceiling disappears. And that’s when silver stops behaving like a volatile commodity and starts behaving like an asset in repricing mode.

Yet it was 83 and a half last time I looked. 83.97 I show right now, up 571. And gold at 5081. 50, up 110 bucks. At 84 bucks. I mean, we were at 65 on Friday night. So here we are. You know what, that’s over 30%. Right back the. I think what people need to understand is first of all, the CME group raised margins to all time highs. Raising margins is, first of all, people think it’s very bearish. In my mind, it’s not bearish. It’s the exchange telling you that this move is real and it’s getting violent.

It’s bearish at first because the amount of money needed to hedge positions increases exponentially. They’ve raised it twice. Right around Christmas, a few days before and the day after it was like $18,000 to hedge 5,000 ounces of silver. Right around Christmas time. The day after it went to 27,000 ounces. And now we’re above 53, 54, $55,000 to hedge 5,000 ounces. For a company like ours, normally have 2 million ounces of silver in the warehouse becomes very expensive. You better have $50 million in your margin account or you’re not going to keep much in the way of hedged inventory of gold and silver.

But this is also true of speculators. And the margins are a percentage of the contract’s value. So when gold and silver go up, the contract gets bigger and the margin requirement goes up automatically. That’s a new thing. It used to be a fixed rate. Now they’re making it a percentage. So you know, the math does this as the price goes higher, okay, that’s fine. But they’re also adding volatility into the equation. And when the market starts getting swinging like we’re seeing up $30.30, they can raise the percentage that you need on margin. And that’s when it really bites.

And because now you’re getting squeezed from both sides, higher prices and higher margin rates. But here’s why it’s bullish. And to me it’s bullish. Because now this is where the macro layer starts to complicate the picture and at the same time strengthen the bullish case. The US dollar index has been trading above 97, rising steadily since mid February. Normally, a strengthening dollar puts downward pressure on precious metals. Silver, like gold, is typically priced inversely to the dollar. When the dollar rises, metals struggle. That’s the historical relationship. But over the past several sessions, something unusual happened. Since around February 17, silver began rising alongside the dollar, not collapsing under it, not stalling, rising with it.

That kind of divergence is powerful because when an asset appreciates despite a traditional headwind, it signals underlying demand that Is not purely currency driven. It suggests buyers want exposure regardless of what the dollar is doing. And that’s not a normal condition. That’s structural interest. If silver were simply reacting to dollar weakness, the move would be fragile. It would depend on macro tailwinds staying perfectly aligned. But if silver is climbing even as the dollar firms, it means the bid underneath is deeper. It means industrial demand. Physical tightness and positioning dynamics are exerting more influence than currency fluctuations.

Now imagine what happens if the dollar stalls or pulls back even slightly. If silver can rise during dollar strength, a pause in dollar momentum could remove one of the final headwinds. That’s when acceleration becomes possible. Of course, there is a flip side. If the dollar index surges above 100 decisively, it could reassert pressure across commodities and temporarily cap silver’s advance. But that risk is precisely what makes this current divergence so important. Silver is already proving resilient before that test even arrives. Markets reveal strength not when conditions are perfect, but when they advance despite resistance. And silver climbing while the dollar strengthens is exactly that kind of signal.

It tells us this move is not fragile, it’s persistent. And persistence, especially at key technical levels, is often the prelude to breakout. That’s a huge piece of wisdom. And this, you know, we live in a world of immediacy where everything is at the touch of your, you know, tip of your fingers, and you get it. Immediate, instant gratification is not quick enough. And it’s important to understand with physical metal that there is a certain level of logistics involved with it, which is becoming kind of log jammed right now. It’s the exception, it’s not the rule. But this market has, this industry, over the last five years since I’ve known you, done again, it really has a habit of going from 0 to 100 and then back to 20, and then back to 150 and then back to.

There’s these moments of craziness coupled with moments of boredom, quiet, maybe I’ll play golf today instead of coming into the office kind of thing. It’s been more of the former rather than the latter lately. But, you know, I think it’s wise advice to prepare when you don’t need to prepare and so you don’t have to worry about it and scramble at the 12th hour. Very, very, very good advice. Now we have to talk about the gold silver ratio, because this is where both the risk and the opportunity sit at the same time. The ratio is currently hovering around 60.

That means it takes roughly 60 ounces of silver to buy one ounce of gold. Historically, that level isn’t extreme, but it is important. And what’s more important than the number itself is the pattern it’s forming. Since mid February, the ratio has been declining, which means silver has been outperforming gold. That’s exactly what you want to see in the early stages of an aggressive silver phase. In strong bull cycles, gold moves first, but silver eventually takes over. When the ratio falls, it signals that silver is gaining strength relative to its more conservative counterpart. But here’s where caution enters.

The ratio isn’t collapsing freely. It’s consolidating inside what technicians would call a bullish flag pattern. If that flag breaks upward, the ratio could push back towards 70 or higher. And if that happens, gold would begin outperforming silver again. That would likely slow silver’s momentum or even trigger a temporary pullback. So this is the balancing act. As long as the ratio remains contained and does not break decisively, higher, silver’s outperformance can continue. But if the ratio surges, it would signal a rotation back into gold’s safe haven. Dominance. That doesn’t necessarily end the broader silver bull case, but it would delay acceleration.

And here’s the strategic layer most people overlook. Silver thrives when markets move from fear into inflationary stress. Gold dominates during pure fear. When capital shifts from defensive preservation to aggressive real asset accumulation, silver becomes the outperformer. The ratio tells us where we are in that transition. Right now, we are in the middle of that tug of war. Silver is trying to assert leadership. Gold is attempting to maintain dominance. And the resolution of that ratio pattern will act as a pressure valve for March. If the ratio breaks down, silver doesn’t just grind higher, it accelerates. If it breaks up, consolidation likely extends.

Either way, this ratio is one of the most critical signals to watch because it determines whether silver becomes the star of this cycle or remains in gold’s shadow Just a little longer, you’re out of business. You’re never going to work again. Well, you have to hedge it. So what you sold short went up $80 million. And it’s very costly. So when people say, can we renegotiate, Understand that we hedge everything and that we’re not making more money when the price falls, we’re sharing that risk with you. But understand this as well. That. But all of the logistics, in and out and hedging and accumulating and the panic, I mean, it’s magnified at a level I’ve never seen before.

What we did in the month of January, the closest I can explain to it would have been when Silicon Valley bank failed during the pandemic. It was the closest I’ve seen to it and I know you’ll attest to that. So all I would say is that yeah, people should be patient even if they’re not working with Miles Franklin. Every dealer is experiencing this right now and it’s a good problem to have, but it’s very stressful. We’re doing the best we can to keep up with it for sure. This is with less than 1% of the public invested in metals, what happens? We’ve talked about the chief analyst for bank of America, Michael Hartnett saying you should have 25% in gold silver.

We’ve talked about the chief investment officer at Morgan Stanley says 20% or Jeffrey Gundlach, the bond king. 25% is underweight. Well, if just a fraction of that institutional big money starts to move into this stuff, what we saw here over the last couple of weeks will be child’s play. And I think you’ll see that. I do. I don’t know what will precipitate it, but we’re a long ways away from this bull market being over. And the desperate acts that we saw last week, to me only, only underscore that. So this is why they say there’s no bull market like a gold bull market.

When it goes up, people are not letting go of anything because they’re reinforced. The market will reinforce their concerns of what’s wrong behind the scenes. I don’t think we’ve seen anything yet. So yeah, you’re wise to say to do it before it gets crazy. My mind, it is already crazy now. This is where the fuel for the next phase becomes undeniable. According to the latest Commitment of traders report dated February 17, managed money hedge funds and commodity trading advisors are sitting on a net long position of just over 5,400. 400 contracts. During the surge toward $121 in January, that number was multiple times higher.

Let that sink in. Silver ran to all time highs with significantly larger speculative participation. Today, after a 47% crash and a 32% rebound, the largest momentum players in the market are barely involved. They are not aggressively long. They are not overcrowded. They are waiting. And that’s precisely what makes this setup so asymmetric. When hedge funds are already heavily positioned, upside becomes limited because most of the buying power is already deployed. But when they’re underexposed, the opposite is true. It means there is dry powder on the sidelines. It means the breakout above $92 if it comes won’t be chasing exhausted momentum, it will be triggering fresh allocation.

Institutions do not buy hope, they buy confirmation. They wait for structure to complete. They wait for resistance to break. And once it does, they scale in aggressively because they are benchmarked against performance. If Silver starts accelerating without them, they cannot afford to ignore it. This is why the low positioning is simultaneously the most bullish medium term signal and the reason for near term consolidation. Funds want stability before committing capital. They want to see that $75 holds. They want to see that the neckline breaks. They want to see rising participation, confirming the move. Once that happens, the shift is not gradual, it’s mechanical.

Allocation models adjust risk desks approve exposure momentum systems trigger entries. And suddenly the market that felt sleepy in the 80s begins moving with urgency. Right now, Silver is rebuilding with hedge funds largely absent. But absence today can become aggressive participation tomorrow. And when you combine underexposure with physical tightness, minor leadership and a developing breakout structure, the potential energy in this market becomes extremely difficult to ignore. Glad you brought that up because we get a lot of people aggravated. I’m sure you’re getting them too. Where’s my stuff? Where’s my, you know, Look, I normally don’t talk about how much business we do, but I’m just going to be open book here.

We did almost 900 million in sales last year and we did 300 million in January. So we did one third of what we did all of last year in the month of January. But that’s everybody. And the overburdened isn’t even funny. I mean, you’re talking running a logistics operation where not only are you constantly buying product from around the world and dealers and the public, you’re hedging, you’re running everything coming in and out, you’re checking things in, you’re validating that it’s real, you’re inventorying, you’re sending it back out. I mean, it’s insane what’s happening right now.

And every dealer in America is way behind. And it’s not. No one’s playing with anybody’s money. This is absolute insanity. And then you get some of the people who find it appropriate to say, well, the price is down. Can I get a new price? Which really irks me because we hedge everything. And people don’t understand the risk that goes into locking in an order on someone’s verbal handshake. And the price goes down and you have it hedged. If you don’t hedge your metal. This is the whole idea of what we’re talking about here with the hedging, then you are dead, right? If you have 5 million ounces of silver that was worth, you know what, what was that worth? $500 million.

Is that right? Yeah, that would be right when it was 100 bucks an ounce. If you have 500 million ounces of silver and you’re hedging it and the price goes down by $10, how dead are you? And you’re never going to get that money back, so you have to hedge it. So one goes up, one goes down, commensurate. And we would normally have 2,3 million ounces of silver in the warehouse and hedging it. If the price of 2 million ounces and the price fell by $50 or $40, do you see the math? That’s $80 million. You’re done.

So what does all of this mean for March? Specifically, it means we are likely entering a controlled compression phase between $75 on the downside and roughly $92 on the upside. That range is not random. It’s structural. It’s the zone where silver either builds a launch paddle or loses its footing. The $75 level is critical because it represents the integrity of the cup structure. As long as price holds above that threshold on a daily closing basis, the bullish architecture remains intact. A dip into the mid-70s would not be catastrophic. In fact, it would likely shake out the last weak hands before a breakout attempt.

But a sustained break below $75 begins to fracture the formation and invites a retest of deeper support levels. On the upside, $84 is the neckline that needs to hold on daily closes. Silver is pressing into that region right now. But the true ignition point sits between $91 and $92. That’s where prior supply overwhelmed demand. That’s where hesitation emerged. And that’s the line that hedge funds are watching. March, then, is not necessarily about instant explosion. It’s about base construction. It’s about allowing time for short covering to exhaust itself while stronger hands accumulate quietly. It’s about compressing volatility inside a defined range until the market has built enough stored energy to resolve decisively.

This is how large moves begin. Not with fireworks, with frustration, with sideways drift that convinces participants nothing is happening. The longer silver stabilizes between $75 and $92 without collapsing, the stronger the breakout tends to be once it finally arrives. And remember, the wider the base, the higher the space. If March is spent absorbing supply, tightening structure, and holding above key support while miners remain firm and physical markets stay tight, the next move will not be random. It will be the release of weeks of compressed pressure. The market right now looks calm compared to January’s chaos. But underneath that calm, structure is forming.

And structure is what precedes expansion. Purchases of Treasuries, well, chips away at the reserve status. So this is a slow little by little process. But I do think that that is exactly what is happening, is that you will see a world that embraces gold as a settlement vehicle and at some point and real price will matter. And if you’re trying to accumulate it, you just play the game of the West. Go ahead, be stupid enough to knock it down. We’ll stand for delivery. And if you’re not going to deliver to us, we’ll incentivize you through massive arbitrage by having a price that is much higher than it is in the West.

So you’ll think twice when you can deliver me 50 million ounces of silver at a huge vig and then go buy yourself a couple of yachts and live in Tahiti forever. Because that arbitrage is significant and it’s unrelenting. They’re not letting it go away. Normally arbitrage is settled when the business will flow to the arbitrage and it’ll balance out. But they’re leaving it there. They’re taking all of their dollars that they’re choking on and saying, fine, we’ll still keep the price higher here for delivery in Shanghai. And people say, well, oh, there’s this tax that’s involved.

They don’t know what the hell they’re talking about. It’s not true. The tax is eaten by the Chinese. The tax, when it is delivered onto the Shanghai Metals Exchange, there is no tax. It is when it is taken off the Shanghai exchange where there is this excise tax or they’re talking of this import tax or whatever the VAT tax that everyone says, well, you add the VAT tax into the metal price. Well, there’s not that much of an arbitrage. Not true. When the dummies in the west buy paper and deliver the physical there that tax belongs to is paid by the recipient of the medal when he pulls it off of the said exchange.

So it’s happening to your point. Done again. And the west is being exploited for their stupidity for playing these games and they have been for a long time. And you and I have been talking about that since 2020 to 1 degree or another. And now it’s kind of getting to the end game. So if there are still some players offside that the west doesn’t want offside well, an event like we saw a 50% retracement or 45% retracement in a couple of days. As contrived and disgusting as it is, it’s already come back 30%. Still a long way to go.

But yeah, it was done for these reasons. And when that happens, well, the players around the world say hey, thanks, thanks. We’ll stay on for delivery on some more and watch what happens on the March delivery. You’re already seeing big volume on the February delivery. So you know these are and March is a primary delivery month. So I expect some fireworks leading up to March and that’s why I think we have a chance to see much higher price. Just before we get going, we just launched the official Silver News Daily Telegram. To kick things off, we’re running a 10 ounce silver giveaway.

Yes, real physical silver. Not a voucher, not digital credits, actual bullion. This telegram will be our new home for real time silver discussions, market insights, collection picks and everything precious metals. It’s where the community truly comes alive. Here’s how to enter the 10 ounce silver giveaway. Be subscribed to Silver News Daily on YouTube. Turn on the notification bell, comment 10 ounce giveaway on three separate videos. Be an active member of the Telegram group and say hi. Once we hit 500 Active Telegram members, we’ll pick one lucky winner to receive 10 ounces of silver shipped directly to you.

So get in early, stay active. If silver breaks above $92 with conviction, the psychology of this market changes instantly. That level is not just another resistance line. It is the confirmation point that transforms this entire recovery from short covering bounce into structural breakout. And once that confirmation prints on a daily close, the first magnet becomes obvious. $100 triple digit silver is not just technical, it’s psychological. Markets accelerate around round numbers because they capture attention. Media headlines shift, retail interest returns momentum. Funds that operate on breakout models begin scaling in. And what looked like a slow grind through the 80s suddenly feels urgent.

From a measured move perspective, a confirmed cup and handle breakout projects beyond $100. Almost mechanically, the depth of the cup from roughly $121 down to $63 creates the amplitude. When that amplitude is applied to the neckline region, it doesn’t just point to a marginal breakout, it opens the door toward a retest of $121. And here’s where things become explosive. If silver reclaims $121, the entire narrative resets. That prior high becomes support. Instead of resistance, traders who sold the top and watched the crash will be forced to reassess. Hedge funds that waited for confirmation will already be positioned.

And momentum traders who missed the initial move will will begin chasing strength beyond $121. Extension targets begin appearing around $136 based on Fibonacci projections from the prior impulse wave. Those levels are not fantasies. They are derived from structural mathematics embedded in the chart. And markets that break all time highs often overshoot initial targets because supply above previous peaks is minimal. So March may not deliver $1,000 overnight. But a clean breakout above $92 initiates a chain reaction. $100 becomes probable, $121 becomes realistic, $136 becomes measurable. And once silver establishes a pattern of making higher highs in open territory, the ceiling that once felt immovable begins to disappear entirely.

This is how repricing cycles unfold. First comes disbelief in the 80s, then acceptance at $100. Then acceleration beyond prior highs. Each level conditions the market for the next. And if the breakout structure completes, the progression from double digits to triple digits may happen far faster than most expect. I think globalism is dying. We’re becoming more mercantile where it’s about protect your home. I think that’s what this is all about to a degree. Globalism isn’t working for us so well. And I think that’s why you’re seeing the rise of all of these exchanges and the idea of what the brics are talking about and for people who poo poo the brics, I’m tired of it.

In fact, I talked about it at Vancouver Resource Investment Conference and I had Nomi Princess backstage saying, you’re right and she’s one smart lady. And she said right there on stage with me too, and that is that all of these countries are using their local currencies over things like enbridge or the SIPs, the Cross bank or what is it, the Cross Interbank Payment System, something like that. Both of these things, both of these platforms are free from swift intervention. And when you get institutional or entities like the Asian countries, A S E A N the acronym, those countries in Southeast Asia that have 800 million people, that have twice the population of the US, that are China’s largest trading partner by far, 30 plus percent of global GDP using these systems, well, you’re no longer settling in dollars if you’re using these systems by a massive entity of people.

And then at the same time, and maybe they’re, they are some dollar settlement, but a lot of it is now going elsewhere. Which begs the bigger question. When you have all of these transactions being done in Dollars, you have reserves. Those reserves are then usually put into Treasuries to make interest on those reserves with safety and liquidity. But now they’re not doing that because they don’t have the reserves. They’re using other currencies, so they’re not buying bonds. And instead what are they all settling imbalances in throughout the BRICs and the expansion of all these vaults. And that is the whole premise of their new system payment system is to trade local currencies over Enbridge or sips or any of the other payment systems that they’ve all designed that are free from swift intervention and settle imbalances, whether it be currency or trade in gold through a set of multi jurisdictional vaults.

Moscow, Shanghai, Singapore, Dubai, all of them at the BRICS vaults. And all those that will be built, the one that was just built in Hong Kong and now the one being built in Saudi Arabia, well they’re all for the same game. Trade your own currencies, defend your own ecosystem, build your own monetary future from within instead of strengthening that of the United States. Settle in balances in gold instead of Treasuries. The settling outside of dollars chips away at the dollar settlement status makes the dollar fall. And, and the lack of. Now we step back from the short term structure and ask the bigger question.

Why would Andy Schectman go as far as saying $1,000 silver is inevitable? Because what we have discussed so far is just the setup. The real argument is structural. Silver is not just a trading vehicle. It sits at the intersection of monetary instability and industrial dependency. On the industrial side alone, demand is relentless. Solar panel production continues expanding globally. Electric vehicle manufacturing is accelerating. 5G infrastructure, advanced electronics, AI data centers, military applications, all of it requires silver. And unlike many other metals, silver has limited substitution at high efficiency levels. When industries need conductivity and reliability, they reach for silver.

At the same time, global mine supply is not expanding meaningfully. Major new discoveries are rare, permitting timelines are longer. Production costs are rising. And much of silver production is a byproduct of mining for other metals like copper and zinc. That means silver output doesn’t ramp up simply because price rises. Supply is relatively inelastic layer on top of that, the monetary backdrop. Central banks around the world continue operating in a system built on expanding debt and currency debasement. Even when inflation cools temporarily, structural deficits remain. Governments cannot sustainably reduce debt loads without financial repression or currency devaluation.

Gold has already responded to that reality. Silver historically lags and then overcorrects. And here’s the dynamic that makes the one thousand dollar argument more than just hyperbole. The physical silver market is tiny compared to global capital flows. If institutional investors decide to allocate even a small percentage of portfolios into physical silver or silver backed vehicles during a monetary crisis, the available float can disappear quickly. We saw a glimpse of this in prior squeezes, but those were retail driven spikes up. Coordinated institutional allocation wave would be something entirely different. When you combine persistent industrial deficits, constrained supply growth, underexposed hedge funds, structural monetary instability and the technical architecture forming right now, you don’t get a normal cyclical rally.

You get the early phase of repricing. And repricing cycles don’t stop at round numbers because they feel large. They stop when capital rebalances against scarcity. If fiat currencies continue losing purchasing power and industrial demand continues tightening supply, the dollar value of silver has to adjust dramatically over time. So when andy talks about $1,000 silver, he isn’t necessarily predicting a straight line. He’s describing an end game scenario where silver is revalued in a world of strained supply chains and structurally weakened currencies. And if March becomes the month where this breakout structure confirms and institutional capital begins flowing back in, we may look back at $80 silver the same way people once looked at $8 silver as the quiet accumulation zone before the real move began.

The circuit breakers. Oh, they have reasons why it didn’t. And they’re using the millisecond thing, a bunch of nonsense, right? They stop it when they want. This was contrived, it was done to I think probably either at the same time flesh out all the speculators and bail out some of the short positions by the big money. You can’t keep doing that when delivery. When you see this huge arbitrage going on in China, you can’t do it. All of that metal will arbitrage away from the comex, from the lbma. If I had to guess now, I’m really stupid to say this and I’m actually reluctant to say it, but I will say it.

If I had to guess by March you’ll see silver back at all time highs. If I had to guess now, what do I know? But based upon what I see, the 30 plus percent swing back today, boom. Why aren’t people freaking out when it goes back up 30%? Yeah, we’ll get back up there and I think it’ll be buyer before March. If I had to guess and all that happened is that the metal went from weak speculative hands who were holding lots of Leverage to the big money that says thank you so much for that discount, by the way.

I won’t be standing for any margin. I’m just going to pay cash for it. And if you look who covered almost 700 contracts at 5,000 ounces apiece at the very, very bottom. Oh, that’s right, it was JP Morgan. How foolish of me to think otherwise. Do you get it? The big money is still in control. But they are showing you where this is going. Not ending the bull market, just kind of showing the big traders who’s really in charge. And that is the big money. Until things get to a point where it’s no longer about the ability to control things on paper, it’s more about really who’s got the physical.

But there has to be a transition to get there. And I think that’s what we’re seeing right now. So here’s where everything converges. We’ve seen the 47% collapse flush out leverage and reset sentiment. We’ve watched the 32% rebound prove there is real demand underneath this market. We’ve identified the cup formation building between $75 and $92, the miners leading quietly, the rare backwardation signaling physical tightness, the dollar divergence showing resilience, the gold silver ratio sitting at a tipping point and hedge funds still dramatically underexposed. That is not a tired market, that is a compressed market. March now becomes the inflection window.

If Silver holds above $75 and confirms above $92, the transition from short covering rally to institutional expansion begins. $100 becomes psychological fuel, $121 becomes structural magnetism. And once prior highs fall, price discovery takes over. That’s when volatility expands, participation increases and narratives shift from skepticism to urgency. But beyond the technical breakout lies the deeper story. Silver is sitting at the crossroads of industrial necessity and monetary instability. Supply growth is constrained, demand is persistent, global debt is expanding, currencies are being diluted, and the physical market is tiny relative to the capital that could move into it during a confidence shock.

That is the foundation behind Andy Schectman’s $1,000 inevitability thesis. Not a straight line prediction, not a one month spike, but a structural repricing cycle that unfolds as capital searches for scarce tangible assets in an increasingly fragile financial system. March may not deliver four digit silver overnight, but it may deliver the confirmation that the next major leg has begun. And if that breakout structure completes, the quiet consolidation we’re witnessing right now could be remembered as the final accumulation phase before silver re enters price discovery in a way most investors are not prepared for. If you want to stay ahead of these shifts in the silver market, make sure you subscribe and stay connected, because the next few weeks could define the trajectory for the rest of this cycle.

This is not financial advice, and you should always speak to a qualified professional before making any financial decisions.
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