Silver’s Secret Kicker

With or without speculators driving up the price, silver demand is surging.

The metal has a superior conductive capacity to other metals, making it irreplaceable for industrial uses. Demand is surging for data centers, EVs and the Chinese green tech sector.

Underinvestment in mines and producers for decades has resulted in a severe deficit.

Since 2021, industrial demand has exceeded global production each of the last five years:

Silver has been in a deficit for six years, with soaring demand for the metal exceeding rising production. (Source: Global Markets Investor)

Herein lies the opportunity. Delivery requests have been met with global inventories. But those inventories are running dry.

The metal’s pop to $120 caught a lot of headlines and attracted speculation on the price, fueled by margin debt.

On January 29, 2026, that spike ended with a historic correction. The price fell from $114 to $78 in minutes. Speculators got squeezed out of the trade, hard.

Since then, the silver price has stabilized around $80 while industrial demand continues to surge. For an interesting way to trade silver as global inventories run dry, click here: Shadow Stocks.

~ Addison

P.S. Last week on Grey Swan Live!, we showcased our latest research on Shadow Stocks – volatile stocks that move rapidly up and down beneath the surface of the calm indexes.

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With or without speculators driving up the price, silver demand is surging.

Silver has been in a deficit for six years, with soaring demand for the metal exceeding rising production. (Source: Global Markets Investor)

On January 29, 2026, that spike ended with a historic correction. The price fell from $114 to $78 in minutes. Speculators got squeezed out of the trade, hard.

P.S. Last week on Grey Swan Live!, we showcased our latest research on Shadow Stocks – volatile stocks that move rapidly up and down beneath the surface of the calm indexes.

Copper and resources are sending us a cleaner market signal than AI stocks.

Channeling Ludwig von Mises, we observe this morning that price is not just a number; it’s information. Price reflects what buyers and sellers collectively believe: demand, scarcity, fear, speculation, disappointment, future expectations and available supply.

When prices rise, and inventories fall at the same time, the message is usually straightforward: buyers need the stuff, and there is not enough of it.

A low VIX does not predict disaster. It measures complacency. A serial skeptic will read it as the calm before a storm. We shook off that feeling this morning and opted to pursue an opportunity instead.

Here goes:

A VIX reading below 15 means the market is not pricing in much near-term trouble, even though there are obvious risks still sitting in the room: Iran, oil prices, memory chip speculation, circular financing, high valuations, epic high concentrations, spiking long-term interest rates, a regime change at the Fed, a meltdown in Japan and a historic deficit and rising national debt.

Money is not flowing in a clean, straight line from outside investors to productive businesses. The firms at the top are investing in and buying from each other.

Microsoft and OpenAI are the easiest examples to follow.

Microsoft says OpenAI has contracted to purchase an additional $250 billion in Azure services, while Microsoft continues to account for $13 billion in funding commitments to OpenAI as an investment.

At this stage, it’s a stock picker’s market.