Friday's technical breakout in silver sets up a perfect storm where several drivers could continue to push this market back to the all-time highs seen in April 2011 and beyond to $60. Many factors, including supply and demand imbalances, a technical breakout, and economic conditions, point in the same direction.
Most recently, the U.S. Geological Survey and the Department of the Interior formally proposed adding silver to the list of critical minerals. This decision highlights the growing strategic and national security significance of silver at a time when industries such as solar energy and artificial intelligence are expanding, driving an increase in demand for silver. This heightened consumption puts additional pressure on the already limited supply, leading to a greater imbalance.
Daily Silver Chart
With economic stagflation projected for September (characterized by declining economic growth and rising inflation), investors should continue to seek safe-haven assets. We anticipate that GDP growth will slow to 1.1% by the end of 2025, and unemployment is expected to rise to 4.4%. Weakness in the U.S. Dollar should continue as economic data softens and the Fed begins to ease monetary policy in September. Having the flexibility to enter and exit the market quickly makes it essential for Precious Metals investors to have a futures trading account alongside their core Physical Precious Metals holdings. If you are interested in speculating on the rise and fall of the price of Precious Metals on a shorter-term basis, such as two weeks or two months, or If you have never traded futures or commodities, check out this new educational guide that answers all your questions on transferring your current investing skills into trading "real assets," such as the 1000 oz Silver futures contract. You can request yours here: Trade Metals, Transition your Experience Book.
Daily U.S. Dollar Chart
Example Silver Options Strategy
We firmly believe that a "Commodities Supercycle" is currently underway and Silver is now facing its fifth consecutive year of deficit and a squeeze could be underway. To prepare we are constructing long-dated call spreads in the Silver market for our clients.
For example purposes, one could purchase the January 2026 Silver futures $50.00 call option while selling a January 2026 Silver futures $60.00 call against it. The plan will create a calculated risk Bull Call spread and costs $2,500 plus any commissions and fees, while your maximum gain would be $50,000, less your initial cost, if silver futures close above $60.00/oz at expiration on December 23, 2025. We believe this strategy achieves a low-risk high reward profile. Staying ahead of the Silver market has never been easier. Get the Blue Line Futures Precious Metals Chart Pack today by registering here: Get Precious Metals Chart Pack
