Following an incredible run in the Gold market, where it has gained over 51% year to date, Silver’s impressive 73% run-up is now capturing headlines, approaching $50/oz for the first time since 1980 and 2011. While reaching $50/oz is a milestone in itself, the case for $100/oz is possible with the right conditions. Staying ahead of the Silver market has never been easier. 

Daily Silver Chart

Ideally, reaching triple-digit Silver prices would require a “perfect storm” of industrial and investor demand, coupled with the right economic conditions. There are five key factors contributing to this scenario. First, the growing industrial demand is significant, as over 50% of silver demand comes from industrial applications. Silver plays a critical role in green energy technologies such as solar panels and electric vehicles, as well as in electronics and 5G technology. The global push for electrification and renewables is expected to drive up demand further. Moreover, persistent supply deficits have plagued the silver market for five consecutive years, where demand has consistently outstripped mine production. Since Silver is primarily a byproduct of mining other metals like copper and zinc, higher prices do not lead to an immediate increase in silver supply.

Monthly Silver Chart

In addition to industrial demand and supply issues, safe-haven demand can further influence Silver’s price. Like Gold, Silver is viewed as a hedge against inflation and economic uncertainty. During times of geopolitical instability, currency devaluation, or stock market volatility, investor demand tends to rise.

When looking at the Gold/Silver ratio (currently 84:1), we believe that Silver is currently undervalued when compared to Gold, indicating that a return to the historical average of 60:1 in the Gold/Silver ratio could lead to significantly higher Silver prices. Additionally, a weakening U.S. Dollar makes Silver more affordable for foreign buyers, which can increase demand. Furthermore, we are in the early stages of the Fed rate cutting cycle, where low interest rates diminish the opportunity cost of holding non-yielding assets like Silver, making it a more appealing investment during uncertain economic conditions

Example Silver Options Strategy

We firmly believe that a “Commodities Supercycle” is currently underway and Silver is now facing its fifth consecutive year of deficit and a squeeze could be underway. To prepare we are constructing long-dated call spreads in the Silver market for our clients. For example purposes, one could purchase the July 2026 Silver futures $80.00 call option while selling a July 2026 Silver futures $100.00 call against it. The plan will create a calculated risk Bull Call spread and costs $2,000 plus any commissions and fees, while your maximum gain would be $100,000, less your initial cost, if silver futures close above $100.00/oz at expiration on June 25, 2026. We believe this strategy achieves a low-risk high reward profile. Staying ahead of the Silver market has never been easier. 

CHECK OUT THE CHARTS TO THIS ARTICLE HERE: One Way to Position for $100 Silver - Blue Line Futures

Futures trading involves substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.

With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third party application. Blue Line Futures employees use only firm authorized email addresses and phone numbers. If you are contacted by any person and want to confirm identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500

Performance Disclaimer

Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.

One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.