"Disappearing like Cinderella": analysts warned of risk of silver price collapse

Silver has risen sharply in recent months and on January 27 set another record, exceeding $110 per troy ounce. According to German firm Heraeus, the rise in prices for the precious metal has become the most extreme since 1980, when American billionaires Hunt brothers tried to monopolize the market. At the same time, leading experts are increasingly warning that silver's rally could collapse in the coming weeks or even days.

- head of EMEA and Asia market analysis at StoneX, Rona O'Connell, told pv magazine that further appreciation in silver is unlikely: "$100 is already quite implausible and I don't believe this level is sustainable." "I call silver a Cinderella. She spends a long time 'in the kitchen', usually when gold is flat, but when she goes to the ball - usually thanks to a rising gold price - she charms everyone. At midnight, however, she disappears faster than she arrived. And that's how the price of silver almost always works. When it starts to decline, the fall can be as precipitous as the rise - those almost vertical movements we're seeing now," O'Connell said.

- Mike McGlone, Bloomberg's senior commodities strategist, believes that silver prices will set a record in 2026 that will "last for years to come." He says the high cost of the precious metal could dampen demand from producers, spur supply growth and trigger the closing of speculative positions, turning a perceived shortage into a surplus. "The devil's metal (this is the nickname financiers have given to silver because of its unpredictability - Oninvest) seems poised to hurt shorts and upside players alike," McGlone told pv magazine.

- Baird market strategist Mike Antonelli in his X post compared silver to the securities of US video game and geek retailer GameStop - a classic example of a "meme" stock whose price soared not because of the company's real successes, but thanks to hype and coordinated actions of private investors on social networks. "How is silver different from, say, GameStop? Isn't that a Ma now?" - Antonelli wrote. He emphasized that the industrial application of silver does not explain the 65% jump in quotes over the past month, as there have been no fundamental changes in the industry in that short period of time.

- former JPMorgan Chase chief market strategist Marko Kolanovic, one of the most ardent "bears" on Wall Street, called what is happening the result of "meme traders trying to take control of the market," Seeking Alpha reports. Current prices "won't hold - silver should trade at about half of current values later this year," according to the analyst, who left JPMorgan in 2024 after a series of failed forecasts.

This article was AI-translated and verified by a human editor