Why Silver Is Set Up for a Major Move Higher: A Bullion Dealer’s Deep Dive
By a Precious Metals Dealer on the Front Lines of Physical Demand
For years, silver has been one of the most misunderstood assets in the financial markets. It’s dismissed as volatile, manipulated, or “too industrial” to be monetary—yet simultaneously too monetary to be treated like a base metal. As a bullion dealer who deals with real metal, real inventory, real premiums, and real customer demand, I can tell you this: silver is not behaving like a normal commodity anymore.
A recent video making the rounds claims that a major financial institution has reversed its positioning in silver. Whether or not that specific claim proves accurate is almost beside the point. What matters is why so many experienced investors, institutions, and physical buyers are suddenly focused on silver again.
This article is not hype. It’s not a price prediction. It’s an education. And it’s written from the perspective of someone who sees the physical market daily—not just futures charts.
Let’s break down why silver is structurally undervalued, strategically critical, and increasingly scarce—and why that combination matters more now than at any time in modern history.
Silver is unique because it lives in two worlds simultaneously:
Gold is hoarded. Copper is consumed.
Silver is both hoarded and consumed.
This distinction is critical.
Unlike gold—where nearly all metal ever mined still exists—most silver mined throughout history has been consumed and lost. It’s in landfills, electronics, solar panels, medical devices, and chemical processes where recovery is uneconomical.
As a dealer, I can source gold with consistency. Silver? It’s getting harder—and more expensive—to replace inventory during demand spikes.
Silver’s price is largely determined in the paper futures market, not the physical market. This creates a dangerous disconnect.
Paper Silver:
Physical Silver:
As a bullion dealer, I’ve watched silver prices fall on paper while physical premiums exploded. That is not a healthy market—it’s a sign of stress.
When futures prices say silver is cheap but physical buyers can’t source metal without paying massive premiums, the price signal is broken.
Broken price signals don’t last forever.
Here’s a reality most investors don’t understand:
🔹 Silver Is Mostly a Byproduct Metal
Over 70% of silver production comes as a byproduct of mining:
That means silver supply does not respond quickly to price increases.
If silver doubles tomorrow:
At the same time…
🔹 Mine Grades Are Declining
Silver ore grades have been falling for decades. Mines must process more rock for less metal, increasing costs and reducing output.
🔹 Capital Is Scarce
Mining investment has been choked by:
As a dealer, I don’t need to speculate on supply. I see it in delivery delays, rising wholesale costs, and tightening availability.
Silver is essential. Not optional. Not replaceable.
Key Demand Drivers:
Solar alone is consuming a rapidly growing share of annual silver production—and that silver is not recycled.
Governments worldwide are mandating:
That creates price-insensitive demand. Manufacturers buy silver regardless of price because they must.
As a bullion dealer, I’m competing with industry for the same ounces.
That never ends well for price suppression.
For thousands of years, the gold-to-silver ratio hovered between 10:1 and 20:1.
Today?
That implies one of two things:
History overwhelmingly suggests silver is the laggard.
Whenever the ratio normalizes—even partially—silver outperforms gold dramatically.
As a dealer, I’ve watched this cycle repeatedly:
Silver doesn’t whisper. It moves violently.
This is one of the most important shifts—and it doesn’t show up in charts.
Retail buyers today are:
Institutional buyers are:
Every time silver dips, physical demand surges. Every time it rises, supply disappears.
As a dealer, I care less about spot price and more about inventory turnover and replacement cost.
Replacement cost is rising.
That’s the signal.
Silver is not just an industrial metal—it’s also monetary insurance.
Consider the backdrop:
Gold gets the headlines—but silver historically outperforms in inflationary monetary resets because it’s accessible to the public.
When confidence cracks:
That demand is reflexive, emotional, and explosive.
Here’s something Wall Street rarely tells you:
Premiums are the real signal.
When premiums rise:
When premiums disconnect from spot:
In recent years, we’ve seen:
That’s not a bearish setup.
That’s a pressure cooker.
Silver doesn’t need everyone to believe.
It only needs:
When that happens, futures pricing becomes irrelevant.
Silver reprices in the physical market first.
And when that dam breaks, price doesn’t move in dollars—it moves in multiples.
I don’t know when silver will move. No honest dealer does.
But I know this:
Markets can stay irrational longer than expected—but they cannot defy physical reality forever.
As a bullion dealer, I prepare for shortages, not headlines.
Silver doesn’t need hype.
It needs time.
And time is running out.