Silver’s Wipeout & the AI Hype Cycle

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So, Wall Street’s been on a winning streak, right? Everything’s up, everyone’s a genius. Artificial intelligence is going to solve all our problems, quantum computing will… well, eventually solve problems, and silver? Silver was having a moment. Like, a really aggressive, “I’m shiny and valuable!” moment. It was all very…enthusiastic. And that, my friends, is always a warning sign. It’s like when your coworker starts referring to themselves in the third person – time to back away slowly.

Last week, silver decided to stage a dramatic exit. A 31% drop in a single day. That’s the kind of performance that makes even seasoned traders reach for the stress-baking supplies. It hasn’t had a day like that since 1980, which, let’s be honest, was a different era. Shoulder pads were bigger, hair was higher, and apparently, silver was more stable.

Silver’s Meltdown: A Cautionary Tale

Before the plummet, silver had basically decided it was going to be the next Bitcoin. It was up nearly 300% in a year. Now, there were reasons. Silver is used in solar panels and electric vehicle batteries, which is good, because we all want a greener future. And during the pandemic, everyone was printing money like it was going out of style, which, to be fair, it kind of was. Finite supply versus infinite printing? It’s basic economics, people. But mostly, it was FOMO. Fear Of Missing Out. It’s the reason people buy avocado toast and start TikTok accounts.

A replay of the 30% crash on Silver pic.twitter.com/q2vxMiU6zK

Goshawk Trades (@GoshawkTrades) January 31, 2026

The silver bubble popped, and it was…messy. Some blamed manipulation, others blamed Kevin Warsh (whoever that is). But really, it was just a classic case of something getting too hot, too fast. Which brings us to AI and quantum computing. Because, naturally, we haven’t learned a thing.

The AI & Quantum Hype Train

Analysts are predicting trillions in economic value from AI. Trillions! That’s a lot of zeroes. Quantum computing is supposed to add hundreds of billions. It’s enough to make you want to sell everything and invest in…well, something. Companies like Palantir are seeing their stock prices go vertical. It’s enough to make you question reality.

Palantir, for those of you who haven’t been following, is up, like, a gazillion percent since 2023. It’s basically the tech equivalent of a lottery winner. And quantum computing stocks? They’re soaring. IonQ, Rigetti, D-Wave, Quantum Computing Inc. – they’re all having a moment. It’s like a tech company convention, but everyone’s wearing lab coats and talking about superposition.

But here’s the thing about these game-changing technologies: investors consistently overestimate how quickly they’ll actually change things. Adoption is happening, sure, but optimization? That’s a whole other ball game. AI infrastructure sales are “otherworldly,” which is a phrase I suspect was invented by a marketing department. But turning that infrastructure into actual profits? That takes time. And Palantir’s price-to-sales ratio is…let’s just say it’s ambitious.

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Quantum computing is even further out. These companies are still in the “early stages of commercialization,” which is corporate-speak for “we have a cool idea, but no actual product.” And even when they do have products, they might not be more cost-effective than regular computers. It’s a bit like building a rocket ship to drive to the grocery store. It’s technically possible, but probably not practical.

So, investors are getting excited about AI and quantum computing, and the stock prices are going up. But history suggests that this excitement is…unrealistic. The silver crash is a reminder that FOMO is a dangerous game. And it suggests that a bubble-bursting event in the AI and quantum computing space is…likely. Just saying. Maybe it’s time to diversify. Or, you know, learn to bake. It’s always good to have a backup plan.

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2026-02-03 11:53