Goldman Sachs commodity strategists Lina Thomas and Daan Struyven have warned that significant price swings in silver are likely to persist. In a recent note, they advised volatility-averse investors to exercise caution amidst ongoing market dynamics. Silver prices experienced a remarkable surge in 2025, climbing 138 per cent. This was the largest annual gain since 1979, when the Hunt brothers famously attempted to corner the silver market. Currently, silver is trading in the high $70s.
The strategists highlighted the dislocation of silver in the US market and the lack of restored liquidity in London. They stated that if investor enthusiasm remains high, prices could potentially rise even further. ETF holdings are still below their 2021 peak, suggesting room for growth. Further increases are anticipated due to potential Federal Reserve cuts and a ‘diversification’ theme.
Net managed money on COMEX is below historical averages. This indicates that investor demand, despite the substantial 138 per cent rally in 2025, is not yet overstretched. Recent trading saw spot silver fall 3.6 per cent to $US78.13 an ounce at 2.54pm in New York trading on Wednesday (Thursday AEDT).
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