Silver is getting attention again. Not because it is shiny. But because several big forces are pushing on the market at the same time. Felix Prehn, founder of Goat Academy, explains this as a “perfect storm.” That means multiple events are happening together, and they can amplify each other.
1) Money printing and weaker currency
One key idea is currency debasement. This is a simple concept: when a central bank creates a lot of new money, each unit of money can lose value over time. People often look for “hard assets” in those moments. Hard assets are physical things like metals that cannot be created with a keyboard.
2) A long supply problem
Silver supply is also tight. The world has been using more silver than it produces for several years. That is called a supply deficit. A deficit means demand is higher than supply, so stockpiles can shrink.
A tricky part is that much of the world’s silver is not mined on purpose. It is a byproduct. That means it is produced while mining other metals like copper, zinc, or lead. So even if silver prices rise, miners cannot quickly “turn on” more silver production. Building a new mine can also take many years.
3) Growing industrial demand
Silver is not only a store of value. It is also an industrial metal. It is highly conductive, meaning it moves electricity very well. That matters for modern life. Silver is used in solar panels, electric vehicles, electronics, and many other devices.
Felix Prehn also points out that demand can be inelastic. This means demand does not drop much even if prices rise, at least for a while. Many manufacturers still need silver to build products people keep buying.
4) A simple price framework: the gold-silver ratio
One popular way to compare prices is the gold-silver ratio. It shows how many ounces of silver it takes to buy one ounce of gold. If the ratio falls, silver is rising faster than gold.
5) Risks still matter
Silver can move fast. Mining stocks can move even faster, both up and down. Risk management matters because big price swings are common in this sector.
For more context on Felix Prehn and the education focus behind Goat Academy, readers can visit Felix Prehn Goat Academy.