I started buying silver at around $24 an oz. Since then the price has climbed to $86+ per oz. The return on silver since then has been remarkable, but only for people who actually sell the silver to cash and close out their position. That’s not something I will do. Silver is money’s final form for me, it is where money goes and stays, it’s what I’ll pass on, or use in an emergency. It’s cold, hard, cash. Untraceable, anonymous, doesn’t require a bank or other custodian, can be stored at home or hidden someplace. As great as it is, I’ve been around long enough to know that when prices spike like this, it is unsustainable, and will eventually come crashing down. I’ve seen it with stocks, bitcoin, real estate, etc.

The problem with volatility is there is no way to predict where the top of subsequent bottom will be. When buying assets, you want to buy when prices are flat, or in other words during times of low volatility.

Buying now, the price may move up to $140 or so. Silver has never moved like this in our lifetimes, so we are fully in uncharted waters. The demand driving the price is industrial demand for use in electronics, the defense industry, automotive industry, for the power industry, etc. however industrial demand has caps. If it is not economical to buy silver at these prices, then manufacturers will not buy it. The price is also probably driven by speculators in the banking industry, and when incentives change – they will short it and dump their holdings to crash the market.

Personally I won’t be buying at these prices and I won’t be selling either.