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The price of XAG rose above $90 per ounce for the first time in history, bringing the price of US Silver Eagles to more than $100 per coin in dealers.
The move prompted the US Mint to take the unprecedented decision to suspend all sales of silver coins to collectors.
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The sale of the US mint has been suspended amid the growing demand for silver
Officials cited extreme price volatility and the inability to price products accurately, citing a crisis in the current supply of silver rather than excessive speculation.
Echo financial commentary This is the beginning of all silver price pressures: sales stop, spreads explode, and availability disappears.
This historical price discovery reflects a combination of:
Citigroup analysts and industry leaders, such as Keith Niemeyer, CEO of First Majestic Silver, have predicted that silver could exceed $100 per ounce in the coming months.
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Market mechanics intensified the movement. Sunil Reddy explained that the silver market is structurally short versus the physical metal. CME spread increases, typically used to slow leverage-driven rallies, increased rather than eased pressure on short sellers.
Producers and banks with an interest in precious metals, which are tied to delivery rather than market valuation risk, have been forced to hedge their positions more quickly, leading to time pressure and higher prices. Futures markets are separating from the physical market, spreads are increasing and liquidity is decreasing.
Reddy said spreads kill leverage, not scarcity.
Investors brace for silver to hit $100 amid systematic supply pressure
Long-time precious metals investors point to a structural flaw that has been building over decades in this context.
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Peter Spina said that there are fewer sellers now and that there is a hungry race for available stocks. He emphasized that for those who have held silver as a means of salvation for years, they are unlikely to sell soon. He considered that this event is only once in a lifetime.
This increase comes amid wider financial pressures. JP Morgan’s latest earnings report highlighted postponed bond issuances, a weak labor market and growing pressures on corporate debt, all of which point to early signs of tightening credit conditions.
Analysts like Jeffrey Snyder argue that this confirms that the silver rally is more than a speculative wave, but rather a sign of underlying market tension.
Some industry experts warn of strategic pressures behind the scenes, with Jim Ferguson quoting Miles Franklin’s Andy Schectman explaining a coordinated extraction before physical silver:
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- Central banks
- Sovereign wealth funds, and
- Commercial traders.
The system is heavily leveraged with approximately 2 billion ounces of paper promises backed by only 140 million ounces of physical metal.
Ferguson highlighted China’s recent moves to limit silver exports and emphasized the metal’s vital role as a national security asset used in high-tech weapons, artificial intelligence architectures and solar power systems.
Ferguson added that what is happening is not a trade, but a quiet collapse of the dominance of paper contracts over physical silver, and the situation is that the public is left in the dark.
Market participants indicate that as silver continues its historic rise, $100 silver may no longer be the inevitable next stage, and this comes at a time when the US Mint has ceased and physical demand has increased beyond paper markets.
