(Kitco News) - After a parabolic move earlier this year, silver prices have entered a consolidation phase — but the broader bull case, supported by robust retail demand, remains intact, according to one fund manager.
In an interview with Kitco News, Nate Miller, Vice President of Product Development at Amplify ETFs, said that despite heightened volatility in precious metals markets, retail investors do not appear to be panicking.
“From the phones, we’re not hearing it,” he said, noting that while flows have slowed somewhat, there has been no meaningful deterioration in sentiment.
He added that investors who follow the metals space understand silver’s tendency to lag initially during rallies but then move quickly higher. “It may not be the first metal to leave the station during a rally, but it’s the fastest to arrive,” he said, pointing to January’s sharp move to all-time highs as evidence.
Miller said that during the sharp drop last month, Amplify saw buyers step in during the first leg lower in prices. At the same time, the $70 range has produced more two-way trading activity, though overall flows remain positive year to date.
Structurally, Miller believes the fundamental case for silver remains strong. He highlighted the metal’s “two-pronged” support: a structural supply shortage tied to its industrial use, alongside ongoing safe-haven and de-dollarization demand on the investment side.
That said, Miller believes the market may be establishing a new base rather than preparing for another immediate surge.
“It does feel like there’s probably a new floor — call it the $70 to $80 range — and we’re in a consolidation period,” he said.
Although Miller has taken a cautious stance, silver has seen renewed momentum as geopolitical uncertainty drives safe-haven demand for real assets. Spot silver last traded at $90.46 an ounce, up nearly 4% on the day.
He expects the current pause to involve price discovery and a cooling of speculative excess, but said “there’s probably another leg higher at some point.” He noted that open interest in the options market remains skewed toward calls, suggesting investors continue to position their portfolios for another upside breakout.
Looking ahead, Miller said that silver’s next move will continue to depend on the Federal Reserve, particularly as financial markets prepare for new leadership. While market expectations had earlier leaned toward a more dovish stance, he noted that Fed officials have recently signaled the possibility of rate hikes amid resilient economic data.
For now, Miller expects a period of policy “hemming and hawing” that could keep markets range-bound through the summer. If another leg higher does materialize, he suggested it may come in the latter half of the year.
