Silver’s Historic Breakout Sends Shockwaves Through Markets
After more than four decades of waiting, silver has rewritten history, breaking past the legendary $50 barrier and climbing above $51 an ounce on Thursday - a level untouched since the chaotic trading days of 1980.
The milestone instantly set off debates across trading desks and social media feeds, with many calling it the start of a new chapter for precious metals.
A Flashback to 1980
The last time silver saw such levels, traders were reeling from “Silver Thursday,” when a massive speculative squeeze led by the Hunt brothers sent prices skyrocketing before they collapsed. That event became synonymous with market excess. Today’s rally, however, looks very different – built on structural demand, inflation hedging, and renewed institutional interest.
Veteran economist Peter Schiff didn’t mince words as the rally unfolded. “Buckle up,” he wrote, noting that silver’s breakout above $50.40 not only surpassed its 2011 high but also eclipsed the 1980 intraday record.
Schiff, a long-time precious metals advocate, suggested the market may be on the verge of a historic short squeeze, arguing that bearish traders have underestimated the metal’s strength for too long. “Silver shorts have had this coming,” he said earlier in the week. “Their pain will be our gain.”
Precious Metals Back in the Spotlight
The silver frenzy is unfolding alongside renewed momentum in gold, which remains firmly above $4,000 per ounce. The combination of U.S. rate-cut expectations, geopolitical risk, and fiscal jitters across major economies is reigniting investor demand for hard assets.
UBS analysts highlighted that uncertainty surrounding the U.S. government shutdown and fiscal pressures in Japan and France are fueling safe-haven demand. The shift is reminiscent of the late 1970s, when inflation and political instability pushed metals to record highs.
Adding to the mix, President Donald Trump announced on Truth Social that Israel and Hamas had agreed to a preliminary ceasefire, easing tensions but doing little to cool the appetite for alternative assets.
A Year for the Record Books
Even before silver’s breakout, gold was already having a historic run – up more than 53% year-to-date, on track for its best performance since the 1979 oil crisis. With silver now joining the rally, traders say the precious metals market could be entering a new supercycle, driven not by speculation but by shifting global liquidity and a weakening dollar.
For now, silver’s move past $50 marks more than just a number – it’s a symbolic crossing that has reignited an entire asset class long considered dormant. And if Schiff’s prediction of a short squeeze comes true, the next stop could make even 1980 look modest.
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