Silver prices proceed to hit recent highs amid a precious metals market boom, with the asset trading in a really crypto-like manner with strong volatility over the weekend.
Silver hit a brand new all-time high of nearly $84 on Sunday, with demand for gold also driving the value to recent highs of around $4,530. Meanwhile, the crypto market continues to sputter.
As highlighted in a post by market publication The Kobeissi Letter on Sunday, silver experienced extreme volatility over the weekend, rising 6% after which falling 10% inside an hour.
“Absolute madness in silver straight away: At 6:20 p.m. ET, just 20 minutes after futures opened, silver prices rose to a record high of $83.75, up +6%. At 7:30 p.m. ET, silver prices fell to a low of $75.15, wiping out -10% of their value in 70 minutes,” the Kobeissi letter said.
Silver fluctuates like BTC
While precious metals like silver and gold are generally considered to have a more stable price, silver is the more volatile of the 2.
With a brand new Federal Reserve chairman set to exchange Jerome Powell in 2026, larger rate of interest cuts are expected under a less hawkish and more President Trump-aligned chairman.
Lower rates of interest indicate lower returns from investing in bonds, with investors then more likely to take a position in commodities equivalent to gold and silver.
In addition, demand for silver can also be bolstered by its industrial use to supply a wide selection of products and is a component of the “devaluation trade,” which refers to declining long-term confidence within the U.S. dollar attributable to currency inflation.
Bitcoin still has to recuperate
While silver and gold are rising partially attributable to expected rate of interest cuts, Bitcoin (BTC) and the crypto market remained flat in December, with BTC falling 0.5% over the past 30 days and at $90,160 on the time of writing, based on CoinGecko data.
Overall, it has been a difficult 12 months, and despite hitting a high of $120,000 in early October, BTC now needs a 6.5% increase to finish the 12 months within the green.
