Silver dropped nearly $3 to just above $36/oz, prompting Peter Schiff to see opportunity: “buy some silver today,” pointing to a potential long-term breakout in the metal.
Market Snapshot: Silver’s Sharp Pullback
Spot silver recently fell to $36.76 per troy ounce, marking a 2.3% decline, approximately a dollar down from recent levels above $39. This sell-off brought silver to levels not seen since early 2012.
Meanwhile, spot gold remains resilient near $3,364/oz, with almost flat weekly gains despite mild pressure from rising market risk sentiment and trade optimism.
In a widely circulated post, economist Peter Schiff wrote:
He has previously warned that silver equities remain muted and speculators may be overlooking the metal’s breakout potential.
Silver is currently trading near $36.76/oz, hitting levels last seen in September 2011, and up roughly 36% year‑to‑date, outpacing gold’s ~31% gain. Analysts cite persistent industrial demand, especially from renewable energy, technology, and defense sectors, combined with shrinking supply, driving a tightening market.
Annual demand for silver now stands at over 1.16 billion ounces (2024), compared to a supply of roughly 1.02 billion ounces, a deficit that has persisted for five straight years and supports upward price pressure. While silver is more volatile than gold, this dip may offer a strategic entry point. Silver flirting with $38, the highest price since March 2012, could signal a setup that investors are underestimating.
Analysts recently observed that mild profit-taking amid trade optimism weighed on precious metals, but a weaker U.S. dollar and expectations of Federal Reserve rate cuts continue to support gold, and by extension, silver.
Industry watchers also highlight silver’s improving gold–silver ratio, which recently dropped to around 87:1 from 105:1 in April, indicating silver is recovering ground relative to gold.
A roughly $1 drop in silver spot price has not shaken structural optimism. From Peter Schiff’s urging to buy into the weakness, to supply deficits and strong industrial demand, the current dip may offer a rare entry point for long-term investors. With silver sitting near $38/oz, discipline and timing could reward those watching the setup closely.
