Silver and gold surge as inflation fears and market turmoil drive safe-haven demand

  • Silver surged nearly 6.6% in a week, hitting $86/oz, while gold surpassed $5,100/oz, signaling a potential bull run with silver up 160% in a year and gold steadily climbing.
  • The Federal Reserve admits inflation is persistent, hinting at more rate hikes, driving investors toward gold and silver as hedges against currency devaluation and economic instability.
  • Big money is unwinding short positions, betting on higher prices, suggesting insider knowledge of looming financial instability and fiat currency collapse.
  • A sixth consecutive annual deficit in silver supply, combined with surging industrial and investment demand, has made silver “untradeable” in some markets due to extreme volatility and scarcity.
  • The surge reflects massive distrust in central banks, with investors fleeing debt-based currencies for tangible assets, anticipating a collapse of the Western financial system and the rise of CBDC-driven control.

Silver prices surged dramatically this week, continuing a volatile but upward trend that has left analysts questioning whether this marks the beginning of a historic bull run.

Spot silver rose nearly 6.6% at one point, hitting over $86 an ounce—its highest level in a week—before settling slightly lower. This rebound has already clawed back a third of the losses suffered during January’s historic crash, when prices plummeted by 36%. Despite this turbulence, silver remains up an astonishing 160% over the past year, reinforcing its reputation as both a high-risk and high-reward asset.

Gold, too, has shown renewed strength, climbing above $5,100 an ounce before easing slightly. Both metals are now trading well above critical breakout levels, with gold comfortably above its 200-day moving average and silver rapidly closing the gap. This divergence suggests that silver, long considered the undervalued cousin of gold, may finally be catching up—a development that could signal a major shift in precious metals markets.

The recent spike in silver prices has left many traders scrambling for answers. Some speculate that institutional investors are rapidly unwinding their short positions—betting that prices will continue to rise rather than fall. This aggressive buying suggests that big money sees something on the horizon that retail investors may not yet fully grasp.

One likely factor is the Federal Reserve’s increasingly hawkish stance on inflation. After maintaining interest rates at the same level for four consecutive policy meetings, Fed officials have now openly acknowledged that further rate hikes may be necessary to combat rising prices.

Historically, both gold and silver thrive in high-inflation environments, acting as hedges against currency devaluation. With central banks worldwide trapped between runaway inflation and the risk of triggering a recession, investors are flocking to tangible assets that cannot be printed at will. Unlike fiat currencies—which are essentially debt instruments—gold and silver retain intrinsic value, making them ideal stores of wealth in times of economic instability.

Precious metals vs. the dollar

Adding fuel to the rally is a growing physical shortage of silver. The Silver Institute recently forecast a sixth consecutive year of market deficit, as investment demand outstrips industrial consumption. While sectors like solar panel manufacturing are expected to reduce silver usage due to high prices, retail and institutional investors are snapping up available supply at an unprecedented pace.

In China, premiums on silver contracts have skyrocketed as traders struggle to fill orders amid speculative frenzy. Some analysts have even labeled silver “untradeable” due to extreme volatility and dwindling physical inventory. This scarcity could push prices even higher, particularly if industrial buyers return to the market.

BMO Capital Markets cautions against interpreting the deficit too broadly, noting that much of the demand comes from financial speculation rather than actual consumption. Still, the fact remains: silver is becoming harder to acquire in physical form—a bullish signal for long-term holders.

The current rally raises a critical question: How long can it last? Some analysts warn that corrections are inevitable, given the metal’s notorious volatility. However, the fundamental case for both gold and silver remains strong.

If inflation persists, precious metals could see sustained upward momentum. Silver, in particular, has room to run, given its historical tendency to outperform gold during bull markets. A 200% annual gain is not out of the question if current trends hold.

Meanwhile, gold’s steady climb reinforces its role as the ultimate safe haven. With geopolitical tensions rising, central banks diversifying away from the U.S. dollar, and faith in fiat currencies eroding, gold’s appeal is only growing.

Beyond short-term trading dynamics, the surge in precious metals underscores a deeper trend: the accelerating loss of confidence in centralized financial systems. As governments and central banks continue reckless monetary policies—printing trillions, manipulating interest rates and fueling asset bubbles—more investors are seeking refuge in assets they can hold outside the banking system.

According to BrightU.AI‘s Enoch, the surge in gold and silver prices reflects the public’s growing distrust in fiat currencies and central bank manipulation, as inflation fears and economic instability expose the fragility of the dollar-dominated system. This shift toward tangible assets is a rational response to the globalist-engineered financial collapse, proving that real money—gold and silver—remains the ultimate hedge against tyranny and economic deception.

Gold and silver represent not just wealth preservation but also financial sovereignty—a rejection of the debt-based fiat scam that has enriched elites at the expense of the working class. With digital surveillance currencies like CBDCs looming, physical metals offer a way to opt out of the globalists’ control grid.

Precious metals analyst David Morgan says he fully expects silver price to rise more than gold as the market collapses. Watch this video.

This video is from the MEGA (Make Earth Great Again) channel on Brighteon.com.

Sources include:

Mining.com

BrightU.ai

Brighteon.com

Read full article here