Huge surge in silver is about to end and the metal will plunge 50%, warns former JPMorgan expert
The rocket ride of silver prices has to end sometime, but one expert sees it plunging in reverse.
Silver hit the $120 per ounce before dropping like a rock and bouncing up to around $114 in a wild day for the precious metal. But one silver watcher sounded alarm bells on Tuesday.
'Silver is almost guaranteed to drop ~50% from these levels within a year or so,' Marko Kolanovic, a former JPMorgan managing director, wrote on X.
'Unlike purely fictitious assets like NFTs, bubble in commodity can't last long - industry demand dries up, supply e.g. recycling increases, and new production is hedged,' he added.
The commodity has been trading at all time highs along with gold, a metal it tends to trade closely to in terms of ups and downs. Gold itself has been trading above an all-time high of $5,000.
Skyrocketing prices have led a range of people from pop financial guru Robert Kiyosaki to the billionaire founder of the world's largest hedge fund, Ray Dalio, to offer support for gold as an investment.
When Kiyosaki excitedly predicted an eye-popping $27,000 future for gold, Andrew Glass of Avatar Commodities pointed out that gold would be a 'rising tide that would lift all boats,' like silver, copper, palladium and more.
Like silver, all of those metals have been trading higher and higher amid the gold surge, and the upward trend hasn't show many signs of slowing in an era of high tariffs and geopolitical tensions.
Silver briefly hit its all-time high of $120 on Thursday, January 29.
Marko Kolanovic, a former managing director at JPMorgan, turned very bullish on silver on X.
Yet, like Kolanovic, not everyone is convinced this surge can last for much longer, as he reposted stock trader and author Mark Minervini, who called for silver owners to start selling.
'Could it go higher? Maybe. But it’s clearly gone parabolic and is entering a climax run,' he wrote. 'That’s your best opportunity to sell into strength and avoid the sharp volatility that always follows.'
Even CNBC's Jim Cramer had something to say.
'The unwind of gold? I think silver is way overvalued,' he posted.
But the warnings seem to be going unheeded by the average investor, still afraid of US debt, the weakening dollar and all kinds of global economic risks.
'There's always the risk of a correction after a large run-up, whether it's in stocks, crypto, real estate, precious metals, etc, but our retail buyers and wholesale contacts don't appear to be overly concerned,' Hunter Rhodes of Atlanta Gold & Coin Buyers told the Daily Mail.
