Silver’s Gone Nuts! Should You Buy the Dip?

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Oy vey! Silver, that shiny little metal, just did a pratfall off a cliff. Plummeted, I tell ya, plummeted! Thirty-three percent in recent weeks. It’s like watching a vaudeville performer try to hold onto a greased ladder. A year ago, it was the belle of the ball, soaring to $115 an ounce. Then…poof! Down to $77. It’s enough to give a nice financial analyst a heart attack! But don’t you worry, folks, I’ve seen worse. I once invested in a yak farm. Don’t ask.

The so-called experts – and believe me, I’ve met a few who couldn’t tell a bond from a bagel – are blaming everything. A slightly grumpy dollar, a little less demand – you know, the usual suspects. And now they’re worried about AI. AI! As if the robots are going to start hoarding silver to build…what? Robot dentures? It’s madness, I tell ya, madness!

And let’s not forget China. They’ve been buying silver like it’s going out of style, which, frankly, it almost did for a little while. All that speculation makes the price bounce around like a rubber chicken. Silver’s always been a bit of a wild child, though. Smaller market, bigger swings. It’s the difference between a poodle and an elephant, see? One’s gonna trip over its own feet, the other… well, it’ll just flatten you.

Now, it’s bounced back a bit, hovering around $80. Still a long way from the high life, but… is it time to pounce? I say, yes! Absolutely! The fundamentals are still there, despite all the hullabaloo. It’s like a comedian who bombs on stage – you don’t throw him away, you give him another shot!

A Weaker Dollar and Lower Rates? Fuggedaboutit!

First, the dollar. It’s been sinking faster than the Titanic. The Federal Reserve’s been slashing interest rates, and, let’s be honest, they’ve been practically begging for a weaker dollar. It’s like they’re saying, “Please, please, depreciate!” And the trend is likely to continue. Those futures traders are betting on more cuts, and with Trump’s new Fed pick coming in, I wouldn’t be surprised if they go even further. Kevin Warsh, that hawk, is suddenly singing a different tune. Go figure.

But here’s the kicker: silver is now an AI play! Apparently, all those fancy AI data centers need a whole lotta silver. I mean, who knew? All this talk about artificial intelligence, and it turns out it’s powered by…shiny metal. The hyperscalers are planning to spend $625 billion on this stuff. That’s a lot of shekels, folks. A lot of shekels.

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If you’re thinking of diving in, the iShares Silver Trust (SLV +3.81%) is a pretty safe bet. They stash the silver in vaults guarded by JPMorgan Chase. Solid, dependable…like a good accountant. They’ve got about $51 billion worth of the stuff. Enough to build a very, very shiny fort.

Despite the recent tumble, SLV is still up almost 9% this year. Beating the S&P 500 hands down! And over the past 52 weeks? A whopping 158%! It’s like finding a winning lottery ticket…except you have to store it in a vault. And it’s heavy. But hey, who’s complaining?

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2026-02-11 22:23