Today Gold and sliver news 130

You know, we often talk perfect storm, but I think this is really perfect storm where everything has come together and [music] uh and really helped uh move silver way way beyond what I frankly had had been expecting. I'll be perfectly honest about that. >> You're watching Silver News Daily. Subscribe for more. >> Everyone's talking about gold, but behind the scenes, something much bigger is brewing. Silver isn't just inching higher, it's preparing for liftoff, and Peter Kra is sounding the alarm. He says silver isn't just going to $50 or even $100. It's going to $200. And it could happen as early as the first quarter of 2026. That's not a typo. $200. And if you think that sounds crazy, just wait until you see what's fueling this move. Silver has already surged over 150% in the last year alone. But according to Kra, we haven't seen anything yet. The real breakout hasn't even started. In fact, the forces lining up right now make previous silver rallies look like a warm-up act. This isn't just about inflation or supply deficits. It's about a full-blown global shift, a loss of faith in fiat currency, and a structural demand wave that could blow the lid off the silver market. If you've ever wondered what a true parabolic move looks like, buckle up because by the end of this, you'll understand exactly why Peter Kra believes silver is about to shatter every record in the book. >> A whole lot. I think that, you know, uh the market to some degree probably has gotten um ahead of itself in terms of sort of speculative buying and uh fear of missing out, some some FOMO pushing this even higher. Um, you know, we can talk about all of the drivers, but I think those are the sort of the two main things that uh that really got it uh really crazy volatile in the last few days. And um we are seeing, as you said, a correction this morning. We're down to just under $72 uh last time I checked um in terms of a spot price. So, it's down uh about 9 12% from uh from I believe at least uh yesterday or or Friday's close um closer to $80. So, um, yeah, I mean, um, that's what's going on right now, but there's certainly been a lot of drivers this year that have helped push silver up over about 150% just this calendar year alone and has doubled really in fact in the last 4 months. So, it's been some some exciting times and I think it's, you know, we often talk perfect storm, but I think this is really perfect storm where everything has come together and uh and really helped uh move silver way way beyond what I frankly had had been expecting. I'll be perfectly honest about that. >> Silver is no longer just a precious metal. It's becoming a battlefield where global economic fears and industrial revolutions collide. And Peter Kra is watching it all unfold like clockwork. What makes silver unique, he says, is that it plays two roles at once. It's a monetary safe haven like gold, but it's also a critical industrial component powering the next generation of infrastructure. That dual identity is why the setup in 2026 is unlike anything we've seen before. As governments scramble to print money and devalue their currencies, silver is gaining momentum from investors fleeing fiat. But at the same time, it's riding an industrial wave driven by the green energy boom, EV expansion, and the electrification of everything. Kra sees these forces not just as additive, but multiplicative. They don't just stack, they compound, and that's what creates the potential for parabolic price action. In his latest breakdown, Kra explains that silver isn't acting like a typical asset. It's behaving more like a high beta macro signal. When confidence in currency collapses and energy infrastructure demands spike, silver doesn't just rise, it explodes. And right now, he argues, both of those forces are converging at the exact same time. Investors aren't just betting on silver, they're preparing for it to become the ultimate insurance policy and the engine of innovation in one. That kind of positioning can lead to a market that doesn't move logically. It moves violently. And the opening signs of that movement are already flashing. >> Absolutely. Um, you know, I think one of the things if we could go back just for a quick moment to what might have triggered these last few days of sort of correcting is, um, there was a, you know, I don't want to put too much weight on it, but he does have a big following. Uh, Elon Musk uh, you know, basically put out a tweet, I think this was just after midnight um, overnight and said this is not good. silver is needed in many industrial processes and uh for a guy who's got over 200 million followers uh you know that could start to have some impact. Um and he's he's right that that this does make life difficult for a lot of the industrial uses for for silver. That being said, a lot of the silver goes into u you know electronics and and so on in very very small quantities. So either it's for a while the manufacturer can absorb that extra cost of silver or they can pass it on and it's not a huge difference in the in the cost to the retail um or or to the uh to the buyer of that product whatever it might be. So um I mean all of these again all of these things are coming into play but um you know if you look at all of the drivers there's things like uh sustained high industrial demand uh we have an ongoing supply deficit we have China that has uh has decided back in October right about when the the the silver price correction seemed to be finishing off um I think this was uh end of October they said they were going to restrict exports efforts and that kicks in actually um January 1st. So I think that a lot of that has started to be uh you know factored in. Um so you know that's that's not a surprise. You know these are the kinds of things that we've known about for a couple of months and so um you you would expect that they've been they've ultimately at least gotten baked into the price. Um but as that as those dates approach I guess you know the market gets more antsy about what the effects could be and so uh I think that has also led to the volatility. There's also um Chinese um inventories that have come way way way down um you know since they peaked in early uh uh sort of mid actually sort of late 2020 early 2021. Uh their um silver stocks peaked uh secondary inventories have peaked. We saw that also in London. We saw it in New York. And so the market if anybody you know sort of has doubt about how tight the physical market actually is I think that should erase those doubts. We always we always talk about you know uh perhaps private private uh privately owned silvers silver hordes. Um and I had been saying for the longest time that sure you know this can can come to market and help alleviate uh supply uh issues but um I kept saying that this would only happen at much higher prices. Maybe we finally you know I I had said 6570 and beyond in terms of prices that it would take to see some of that silver come back to market. Maybe we're starting to see some of that happen now as well. Just before we get going, we just launched the official Silver News Daily Telegram. To kick things off, we're running a 10oz silver giveaway. Yes, real physical silver, not a voucher, not digital credits, actual bullion. This Telegram will be our new home for real-time silver discussions, market insights, collection picks, and everything precious metals. It's where the community truly comes alive. Here's how to enter the 10oz silver giveaway. Be subscribed to Silver News Daily on YouTube. Turn on the notification bell. Comment 10 oz giveaway on three separate videos. Be an active member of the Telegram group and say hi. Once we hit 500 active Telegram members will pick one lucky winner to receive 10 ounces of silver shipped directly to you. So get in early, stay active. The silver market didn't just heat up in 2025. It went nuclear. Prices blasted through $83 an ounce, shattering previous records and stunning even seasoned traders. But Peter Kra isn't calling that the top. He's calling it the beginning. What happened in 2025 wasn't a blowoff. It was the ignition. Silver jumped more than 150% in 12 months, driven by a toxic mix of weakening global currencies, historic industrial demand, and a rush into hard assets. But if you zoom out, Kra argues, this was just the first leg of a much bigger move. The key, he says, is to look at the character of the surge. This wasn't a speculative frenzy driven by hype. This was a structural repricing. Silver futures contracts saw multiple CME margin increases, a sign that the market was heating up too fast for regulators to ignore. That's not something you see during a pump and dump. It's what happens when real leveraged demand floods the system. And yet silver remains deeply undervalued when you compare it to historical inflationadjusted highs. Krath sees what most analysts are missing. This rally is different. It's not being driven by one sector or one narrative. It's being powered by a collision of global forces, every one of them bullish for silver. From central banks quietly accumulating physical metal to nations scrambling for industrial supply, the pressure under the surface is immense. And as we enter 2026, the market is beginning to realize that what we saw in 2025 wasn't the peak, it was the warm-up. Yeah. You know what's interesting too for people to keep in mind is that this this odd period that we're in here uh late December between Christmas and the new year and markets really opening up where people uh you know big traders are off and away um this is always a risky time because uh volumes are much lower and it's easier to push prices around uh much more much more quickly and much more dramatically. So um I mean I think that uh these are all sort of things to to to watch for. Um I I think that uh you know you you need to keep all of that in mind when you look at u how the price can behave. The other markets I think are being pushed around in a similar way for for similar reasons in terms of you know low volumes and uh and dramatic recent gains. In fact, um, gold of course has not had such dramatic gains in in such a compact time as silver has, but my understanding and I haven't watched as closely, but platinum and palladium have palladium I think in particular has uh has nearly equaled what silver has done in the last little while. So, um, you know, there's some some profit taking. There's volatility for for low volumes. Again, um these are all things to keep in mind, but um we're all we're talking about inflation hedges here and and uh recognized um safe havens and so I don't I don't see the the picture changing in any way dramatically for uh for these metals. These are uh metals that uh you know um supply is is ongoing uh in in a very tight uh um uh outlook uh in terms of a tight setup and um you know I think that um we're expecting for example rates to continue falling. We're expecting a dovish um uh new Fed chair to come in and take over soon. So, uh there's maybe some um selling the news kind of thing going on. Uh we had been buying the rumor. So, there's some some probably a fair bit of profit taking right now. I don't think that the bottoms in these metals is much lower from from where we are. Um and uh again, these are place these are the these are markets these are uh assets that you want to at least have some exposure to. So, you know, be maybe cautious about adding at this point, but um I I think they'll hold up quite well. >> While headlines celebrated silver's return to all-time highs, Peter Kra was focused on something far more serious. The physical silver shortage that's tightening like a noose around the market. The real story of silver's next leg up isn't just about investor hype. It's about scarcity. Specifically, the kind that's emerging in London, one of the world's most critical silver hubs. According to multiple sources, silver inventories in London vaults have been declining month after month, and Kra warns that we're approaching a tipping point. He explains that the market for physical silver is now dangerously thin. And unlike in previous years, where ETF inflows or futures speculation could inflate prices temporarily, today's rally is being driven by a brutal supply squeeze. Industrial buyers aren't just bidding, they're scrambling. Solar manufacturers, EV producers, and electronics giants all require physical silver, and they're competing with investors who h are waking up to the fact that there may not be enough to go around. What happens when physical supply disappears, but demand doesn't slow down? Prices go vertical. And that's exactly what we've started to see. Even Goldman Sachs has pointed to thinner inventories as the driver behind violent price swings. Krauss sees this as the most important yet least understood factor behind his $200 call. Once silver availability collapses, it won't matter what futures are saying. The only thing that will matter is who can get physical and how much they're willing to pay. >> Don't see that happening. It really is a different market. 2011 um you know was I I don't know specifically for that year but we were looking at surpluses for the most part on average for um I'm going to say almost the 5 to 10 years prior to 2020 and um uh only as of then we started to look at at serious deficits in the silver supply. So um that that is what has made this market you know so different from back then. We've seen um industrial demand really just continue to just plow forward. Uh we've seen the growth uh from from solar for example has continued to plow forward. We talk about things like um being worried about uh you know uh substitution uh in in things like u electronics or or uh in solar in particular that's very very very difficult. I mean um even at these kinds of high prices certainly the margins get squeezed for for solar panel manufacturers but they're still able to make a profit. Uh silver would have to almost double from here for them to for the amount of silver going into a panel to really erase all of the profits for solar panel manufacturers. And uh you know despite this talk about thrifting and the potential to switch over to something like copper um you know that's not something I've seen um being proven sort of on the uh technological side. Instead we're seeing a move towards higher um consumption technologies for solar panels things that take up to 50 to 150% more um per panel uh of silver. So u I don't see any sort of meaningful slowdown in terms of silver consumption and um this an interesting point um in you know if you look at the world silver survey back in that came out in April of this year they had said that they expected uh net physical investment to be somewhere around um 190 million ounces and they then they uh no sorry about 200 million ounces this year and then they revised it down actually in November. number to about 189. So it's not huge. It's about maybe 20 million ounces less. It's really not it's almost a rounding error at these levels. But um what's interesting is the amount of silver flowing into silver ETF ETFs. They thought that that would amount to only about 70 million ounces. And I remember thinking that sounds way off to me. We're going to be a lot closer to 180 200 million ounces. And then >> Peter Kra's $200 silver forecast isn't built on hope. It's built on collapse. specifically the collapse of confidence in fiat currencies and the institutions that back them. In early 2026, the signs of that collapse are everywhere. The December 2025 jobs report was a disaster. Just 50,000 jobs added with unemployment ticking up to 4.4%. The Fed, once hawkish, is now backing off fast, pivoting toward easing just as inflation begins to show its teeth again. According to Kraut, this is the perfect storm for precious metals and silver is leading the charge. He argues that silver thrives in precisely this kind of environment, economic stagnation, monetary confusion, and central banks walking a tight rope between recession and runaway inflation. Every time the Fed flinches, every time real yields fall or the dollar dips, it sends another wave of capital into hard assets. But here's the catch. Gold may be the traditional safe haven, but silver is the amplifier. It responds faster, moves harder, and outpaces gold when panic really sets in. Krath points to historical analoges. 1980 2011 moments when faith in fiat cracked and silver responded with explosive moves. But today's setup is bigger. Global debt is at record highs. Governments are openly embracing deficit spending. And central banks are boxed in with no clean way out. That's why silver isn't just reacting, it's being revalued. Investors aren't just betting on a metal, they're fleeing a system. And Kra believes that's what makes this time fundamentally different. When they put out the revisions in in November, um that was really the number that they came out with. So that um they think that flows of silver into ETFs is going to be closer to 200 million ounces in 2025. So that puts if you look at market balance, so the net deficits with silver flowing including silver flowing into ETFs, we're going to be at the the single largest overall market deficit in silver that uh we have on record for the last 10 years and probably ever. So, um I think I think what people need to do at this point is not rush, not jump in necessarily. Um if they own no silver, frankly, maybe buying even a little bit at 707 $722 wouldn't be necessarily a bad idea. I'm not saying again to go all in, but get your feet wet, own a little bit, and then continue to watch it. I think that uh given the kind of behavior we've had and this is one of those parabolic rises if you look over the last year or so um like I was saying earlier a correction to somewhere around the low60s would not be a surprise and I think that it would make sense to anyone who doesn't who feels it doesn't have enough exposure to to accumulate to start accumulating more um you know around those levels. Um, honestly, I think that uh we're going to see probably higher highs than we've just seen at some point in uh in 2026. So, you know, if you look at uh the high mark around say $80 this year, give or take, I think we could see that repeated easily again um at some point in the first half. And I think we could push closer to the the uh the '9s, even the triple digits in the second half of of 2026. Um, you know, this is this is a really really truly tight market that um I I think that the observers and and participants really didn't believe until recently and I think that's going to continue to play out. We do not have a way to bring significantly more silver to market and mine supply is tight. uh there's no meaningful growth and yet demand is expected to exceed supply to the order in in on the order of about 10 to 15% at least uh this year next year for next several years and the silver institute forecasts record high deficits at some point over the next five years so this is going to remain very very tight and yeah I think it's it's a very very different picture from 2011 >> while the headlines focus on silver's dollar price. Peter Kra is watching the chart that tells the real story. The gold silver ratio. This single metric, how many ounces of silver it takes to buy 1 ounce of gold, has been Krauss's reality check for years. And right now, it's flashing one of the most bullish signals in decades. Historically, when this ratio plunges, it's a sign that silver is entering its acceleration phase. And in early 2026, that ratio is collapsing fast. Kra points out that silver's strength is no longer speculative. It's structural. In late 2025, the ratio dropped below 65, a level not seen since previous bull markets. That doesn't just suggest silver is strong. It suggests gold is lagging behind. And when gold plays catchup, it usually confirms that the entire precious metals complex is in a true breakout. But the bigger insight here is what this ratio reveals about investor psychology. When silver starts to outperform gold, it means fear is turning into urgency. Investors aren't just hedging, they're hunting returns. The ratio also acts as a volatility gauge. Silver being more thinly traded and industrially tied tends to explode in either direction when the ratio moves. Kra believes that this recent breakdown is the market signaling an extreme undervaluation in silver that's finally being corrected. It's not just about demand. It's about repricing an asset that's been suppressed for years. And as this ratio continues to tighten, it opens the door for silver to not only catch up, but to overshoot in spectacular fashion. Look, honestly, it's almost like anything can really happen at this point. It's gotten very volatile. Silver's known to be volatile and um you know, given uh how it's behaved maybe in the last week, to see more spikes up or down wouldn't really be too surprising. I I do actually hope that it gets to correct properly um sufficiently. I mean I was just looking at a chart before we got on um this call uh Elijah and uh you know for silver's been quite overbought if you look at what we call the RSI in on a technical chart and so frankly for it to correct I think reasonably and get closer to its 200 day moving average which would be a lot healthier it would probably need to move down to the low 60s. So let's say $60 $62 and then I think that would be a reasonable correction. Uh would not be a huge surprise given where it was. That would be about a 20% uh correction from close to $80. Um and it's about another say 10% correction from where we are now. So again, that would be very helpful. Um it would adjust a lot of the sentiment and I think that we could actually potentially see it move sideways from from that uh from that level. um you know there's uh the the uh the miners have done extremely well. They haven't quite followed to the same degree that with the same leverage that u they normally would. So I think that there's still actually some fair degree of potential once silver sort of finds it its footing and starts to um uh climb again that uh that the stocks will start to uh properly leverage the silver price again. But it's been it's been fantastic in the miners as well for the past year year and a half. So, how does Peter Kra justify a $200 silver price without sounding like he's chasing a fantasy? Simple. He lays out a framework that's built on cold, hard data, not dreams. First, he starts with the industrial side. Demand from solar, EVs, and nextg electronics is set to eclipse anything we've seen before. By 2026, silver's role in green energy isn't optional. It's essential. And with no scalable substitutes, manufacturers have no choice but to secure long-term supply at any cost. This, Krath explains, creates a floor under the price that's rising faster than most people realize. Then there's the monetary side. Krath believes that silver is being revalued as the credibility of fiat erodess. He points to the massive increase in retail silver purchases, the shrinking comics and London inventories, and a growing number of institutional players who are finally waking up to silver's asymmetric upside. In his words, silver is the last cheap asset left. That's not just a catchy phrase. It's backed by decades of underperformance relative to gold, inflation, and the broader commodities market. And finally, there's the leverage factor. Silver doesn't move slowly. It moves all at once. Once key resistance levels are broken, and many were in late 2025, the price action can go parabolic. Kra highlights that in every major silver bull market, the final surge comes quickly, violently, and without warning. His $200 target isn't based on wishful thinking. It's what you get when industrial supply fails to keep up with monetary demand, when inventory vanishes, and when traders pile in chasing a breakout. If you think $200 is impossible, you haven't done the math. Kra has and the numbers are terrifying. >> In these last thoughts, uh that um volatility will continue. But uh if you look at the overall outlook, the setup going forward um you know geopolitics are not that favorable. Um infl the inflation outlook is not that favorable. Um, economically things are looking challenging in terms of risk of recession, in terms of sustained high inflation. Something to keep in mind, Elijah, is look, before COVID hit, we were averaging barely averaging about 2%. And central banks were desperate to get uh inflation up and kept rates at near zero for the longest time. Um so you know and postcoid after this huge jump in inflation that went up to 9% in mid mid 2022 and then corrected back we even more like averaging 3%. So we're 50% above precoid inflation. The Fed still talks about 2% being its target. We're h we're we're 50% above that and they're cutting rates. So I mean you know this is like a game of chicken where they've they've they've caved. they've given in. Um they've said that uh they will sacrifice the dollar. Um they will sacrifice inflation and uh they will instead look to uh support employment and the economy by by keeping rates low and you know the consumer will have to deal with higher prices. So as I say the setup is there. If anybody thinks um you know they think that it'll it's likely to play out differently, I'd like to hear about you know their their reasoning for it. I can't uh you know I've looked at this from many angles. I can't see why uh it wouldn't continue necessarily on that path. That doesn't mean precious metals move up you know in a in this linear fashion nice straight gradual climb. It will they will likely raise with volatility but the bias will be to the upside. So Peter Kraut's $200 silver forecast isn't some wild outlier. It's a rational outcome of the forces that are now fully in motion. A historic demand surge, a devastating supply crunch, the collapse of fiat confidence, and a technical breakout unlike anything silver has seen in over a decade. These aren't disconnected events. They're converging into a single powerful trajectory. And for those paying attention, Kra's prediction doesn't sound crazy. It sounds inevitable. As we move deeper into 2026, the signs are everywhere. Silver isn't just rising, it's accelerating. Investors are waking up. Institutions are rotating in. And the physical market is on the verge of a full-scale squeeze. The next move won't be linear. It'll be vertical. And if you've made it this far, you understand why. So, if you want to stay ahead of what could be the biggest wealth shift in the metals market in a generation, now's the time to act. Make sure to subscribe so you don't miss what's coming next. And remember, this is not financial advice. Always speak to a professional before making any financial decisions.