Silver is on fire—and this Time, it’s not just another Fleeting Rally.

by Jon Little intern Mr. Carmine Lombardi

Silver is on fire—and this time, it’s not just another fleeting rally. After years of playing second fiddle to gold, silver has exploded through the $32–$35 resistance zone, surging toward $39 per ounce and signaling a seismic shift in the precious metals landscape. But what’s really driving this move, and why should you care? More importantly, what happens next?

There is No Magical Switch For Increasing Silver Production.

Unlike crude oil, silver cannot simply ramp up production to meet surging demand. There’s no OPEC for silver, no taps to open wider. The world’s silver mines are already running at full tilt, yet supply keeps falling short. So, what happens when a market can’t stabilize itself with more production? Isn’t a supply crisis inevitable?

The Supply Squeeze: How Bad Is It?

For the fourth year in a row, the silver market faces a stubborn supply deficit. Industrial demand is breaking records, fueled by the relentless growth in solar panel manufacturing, electric vehicles, and high-tech electronics. Above-ground reserves are vanishing as mine output fails to keep up. If the world keeps using more silver than it produces, how long before the shelves go bare?

• Declining mine production: Major silver-producing countries are reporting stagnant or falling output.

• No surplus capacity: Unlike oil, there’s no “spare” silver waiting in the wings.

• Inventories dwindling: Above-ground stocks are being drawn down at an alarming rate.

• Mexico Pause: The Worlds #1 Silver producer is no longer under US blackmail terms. Amid Trump turmoil China has stepped up and offered Mexico a lifeline and Mexico’s Morena party is more ideologically aligned with China than US which publishes hostile and racist rhetoric against the citizens of Mexico. Moreover, Russia has entered into a joint venture with Mexico to increase PEMEX production and supply Mexico with LNG so Mexico doesn’t have to kow-tow to US leverage.

If supply keeps shrinking while demand explodes, what’s going to stop prices from going parabolic?

Industrial and Monetary Demand: A Perfect Storm?

Silver isn’t just a precious metal—it’s an industrial workhorse and a monetary asset. Solar panels, 5G networks, and electric vehicles are devouring silver at unprecedented rates. Meanwhile, investors and central banks are snapping up physical silver as a hedge against inflation and economic uncertainty. With both industrial and monetary demand soaring, can the market handle this two-pronged assault?

• Industrial demand: Solar, electronics, and green tech are insatiable.

• Monetary demand: Investors and central banks are hoarding silver as fiat currencies wobble.

When both factories and investors want the same ounce of silver, who wins?

The Paper Silver Time Bomb

Here’s the dirty secret: most of the “silver” traded on global markets doesn’t actually exist. The paper silver market—futures, ETFs, and derivatives—dwarfs the physical supply, sometimes by a factor of 100 to 1. This system has kept prices artificially low for years. But what happens if everyone suddenly demands delivery? Could we see a historic short squeeze that sends prices into the stratosphere?

• Hundreds of paper ounces for every physical ounce

• Short sellers at risk of being squeezed

• Potential for a runaway price spike

If the paper promises can’t be fulfilled, what’s the real price of silver?

Macro Tailwinds: Is the Dollar’s Decline Silver’s Gain?

The U.S. dollar is weakening, with the Dollar Index breaking down and inflation fears mounting. Historically, a falling dollar has been rocket fuel for silver and gold. Central banks are buying gold hand over fist, and by extension, supporting the entire precious metals complex. With fiat currencies on shaky ground, is silver about to reclaim its status as the ultimate store of value?

• Dollar weakness boosts commodity prices

• Central bank gold buying spills over to silver

• Inflation makes hard assets more attractive

If central banks are hedging with metals, shouldn’t you be, too?

Is Silver Still Cheap Compared to Gold?

Despite its recent rally, silver remains historically undervalued relative to gold. The gold-to-silver ratio is still elevated, suggesting silver has plenty of room to run. Inflation-adjusted, silver is nowhere near its all-time highs. If the ratio reverts to the mean, how high could silver go?

• Gold-to-silver ratio remains high

• Inflation-adjusted silver price lags historical peaks

If silver is still cheap, isn’t now the time to act?

The Outlook: How High Can Silver Fly?

Technical analysis points to targets of $42–$44, with some calling for $48–$50 if momentum continues. In a true supply crunch or short squeeze, triple-digit silver is not out of the question. But make no mistake: volatility will be fierce, and corrections are part of the ride. Are you ready for the rollercoaster?

Silver Stocks: The Leverage Play

Silver mining stocks, especially those in ETFs like SIL and SILJ, are breaking out from years-long slumber. These equities offer amplified gains—but also bigger risks. If silver’s bull market continues, could miners be the ultimate leverage play?

Silver Academy endorses 5 Silver miners (top 3 listed below, more on the other two later this week)

These 3 miners are all in production and are pure silver plays not silver as a by product. They are endorsed using 4 point grading system of ore grade, metallurgy, jurisdiction, volume of ounces in pipeline (aka Mineral Resource Estimate)

1. Andean Precious Metals: TSXV: APM, OTCQX: ANPMF
   

2. Aya Gold & Silver: TSX: AYA, OTCQX: AYASF
   

3. Kuya Silver: CSE: KUYA, OTCQB: KUYAF
   
   Conclusion: Does It Take a Genius to See What’s Coming?

Silver’s bull market is no accident. It’s the result of years of supply neglect, surging industrial and monetary demand, and a dangerously overleveraged paper market. The setup is explosive. The opportunity is here. The only question left: will you seize it before the crowd does?