Why Silver Could Outshine Gold in Today’s Market
In the latest episode of Live from the Vault, Andrew Maguire and Dave Kranzler explore why silver may be positioned for a dramatic revaluation as global markets undergo profound structural change. Mounting financial pressures are driving investors toward physical precious metals, explaining why silver, in particular, stands out as both a defensive asset and a high-potential opportunity in today’s environment.
Why Silver Appears Undervalued
A central point is that silver remains historically undervalued relative to its long-term median price and its traditional ratio to gold. Despite its essential role in industrial applications, technological demand and monetary history, the metal trades at levels that do not reflect its importance. Continuous currency debasement means that precious metals prices appear to rise not because the metals change, but because fiat currency relies on ever greater issuance to sustain the system. Against this backdrop, owning physical silver becomes a strategy of wealth protection.
Silver’s Systemic Suppression
Andrew Maguire argues that there are mechanisms that have kept silver artificially cheap for years. A legacy pricing structure built on the LBMA and CME allows extensive paper dilution, enabling major bullion banks to suppress price discovery through entrenched shorting and the creation of synthetic supply.
These positions are becoming increasingly untenable as the physical market tightens. ETF products such as SLV, which rely on sourcing large quantities of metal on demand, may face severe strain if widespread conversions or redemptions occur in a period of physical scarcity.
A Shift Towards Physical-Driven Pricing
One of the most important developments is the shift in global pricing power from West to East. China’s exchanges are becoming dominant forces in physical price discovery, reducing the influence of Western paper markets.
This shift supports a more accurate reflection of physical supply and demand conditions, particularly as silver inventories decline and export controls restrict access to new supply. As Eastern markets assert greater authority, synthetic suppression becomes harder to maintain.
Is the Silver Revaluation Approaching?
With silver’s physical supply increasingly constrained, the market may be nearing a point where much higher prices are required to balance demand. Liquidity providers and wholesalers report persistent shortages, and the cost of obtaining large quantities of metal is rising. The potential upside is comparable to the explosive gains of the dot-com era, showing that silver’s reversion toward fair value could be swift once key thresholds are breached.
Silver’s Role in the Times of Crisis
There are vulnerabilities facing modern society. The fragility of global infrastructure, heightened geopolitical tensions and financial instability highlight the importance of assets that retain value under stress. Silver stands out as a practical tool in crisis scenarios. Small denominations, recognisability and ease of exchange make it a functional medium of exchange when conventional systems falter or when fiat currencies face rapid loss of purchasing power.
Silver’s portability and divisibility make it particularly useful for everyday transactions in emergencies. Whether through severe inflation or disruptions to banking systems, silver has historically played a role as barter money, and remains uniquely suited for this purpose today.
Silver in the Mining Sector
Mining stocks provide additional context for understanding the metal’s price potential. As silver prices rise above the industry’s all-in sustaining costs, profits can increase sharply. However, navigating the mining sector requires specialised expertise, as financial statements often conceal risks in footnotes. Understanding which companies offer genuine leverage to rising silver prices is essential for investors seeking exposure to the sector’s potential upside.
Physical Demand Driving the Market
The current rally is driven by physical demand rather than speculative paper flows. As more investors seek tangible assets to hedge financial instability, physical silver becomes increasingly scarce. This shift away from Western derivative markets towards Eastern physical hubs strengthens the trend and builds pressure that could ultimately break the longstanding disconnect between price and fundamentals.
Silver’s undervaluation, tightening physical supply, rising geopolitical risk and transition to physical-led price discovery all point to a metal on the cusp of a major repricing. By seeking reliable information and preparing for systemic uncertainty, individuals can position themselves for a future in which silver finally reflects its true value.
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The opinions, analyses, and predictions expressed by Andrew Maguire and any guests in this content are their own and do not necessarily reflect the views, positions, or official policies of Kinesis.
This information is provided for informational purposes only and should not be considered financial advice. Kinesis assumes no responsibility for any investment or financial decisions made based on the information provided. Please consult with a qualified financial advisor for personalised guidance.
