The Bull Market for Silver Is Just Starting – Peter Schiff

Source: Coindoo Original Title: The Bull Market for Silver Is Just Starting – Peter Schiff Original Link: Peter Schiff believes the sharp moves in silver during 2025 marked the beginning of a long-term bull market, not its conclusion.

While many investors point to the recent correction from the highs as proof that silver has already peaked, Schiff argues that the price action, macro backdrop, and positioning tell a very different story.

Key Takeaways

• Schiff views silver’s move above $50 as a historic breakout, not a blow-off top
• The recent correction helped reset sentiment without damaging the long-term trend
• Technical indicators show cooling momentum, not structural weakness
• Supply constraints and lagging silver stocks point to further upside ahead

A Historic Breakout That Changed the Long-Term Structure

Silver ended 2025 near $71 per ounce after surging as high as the $84 area earlier in the year. Even after the pullback, prices remain more than 40% above the long-standing double top around $50 – a level that capped rallies for decades.

Schiff stresses that this move above $50 was not a temporary spike, but a structural breakout. That resistance dates back to 1980, making it one of the most important price levels in silver’s history. The fact that silver paused, consolidated, and then accelerated through it suggests a regime change rather than speculative excess.

He also rejects comparisons to the 1980 and 2011 peaks. In both of those cases, silver topped while the U.S. dollar was strengthening and interest rates were rising. Today, Schiff sees the opposite environment forming, with the dollar weakening and rates moving lower – conditions that historically favor precious metals, not their collapse.

Why the Correction Strengthens the Bull Case

Silver’s pullback from $84 to the low $70s has been widely interpreted as a sign of exhaustion. Schiff disagrees. He argues that part of the volatility was driven by futures exchanges raising margin requirements, which forced leveraged traders to reduce exposure and amplified the downside.

Rather than breaking the trend, the correction cleared speculative excess and reset sentiment. Schiff notes that silver has held above $70 despite heavy selling pressure, suggesting that buyers are stepping in at much higher levels than in previous cycles.

From his perspective, the market already experienced its correction. The opportunity to buy silver at $50 is gone, and the new support zone has shifted meaningfully higher.

Technical Picture: Momentum Cooling, Structure Intact

The chart supports Schiff’s broader thesis. Silver is currently trading around the $72–73 area, consolidating after its sharp advance. Momentum indicators reflect cooling conditions rather than trend failure.

The RSI on the 4-hour chart sits near neutral, around the high-40s to low-50s range. This suggests that silver has worked off overbought conditions without slipping into deeply oversold territory – a typical behavior during bullish consolidations rather than bearish reversals.

MACD has recently turned slightly negative, reflecting short-term downside momentum following the correction. However, the histogram shows signs of stabilization, indicating that selling pressure may be losing intensity. In strong bull markets, Schiff argues, these pullbacks tend to resolve sideways or higher rather than cascade lower.

As long as silver remains above the $70 zone, the broader breakout structure remains intact.

Silver Stocks Lag, Signaling Skepticism Not Euphoria

One of Schiff’s strongest arguments is what has not happened yet. Despite silver’s explosive move, silver mining stocks have barely participated. Investors remain cautious, and capital has not aggressively rotated into the sector.

Schiff draws a parallel to gold, which continued rising for an extended period while gold equities lagged. Eventually, earnings growth and margin expansion forced investors to reprice mining stocks higher. He expects the same dynamic to play out in silver, potentially making 2026 a year when silver equities finally catch up.

In his view, the lack of enthusiasm is bullish. Major tops tend to form when participation is broad and speculative fervor is extreme. Silver, he argues, is nowhere near that stage.

Supply Constraints and the Path Toward $100

Beyond price action, Schiff highlights growing supply-side pressures. China’s recent restrictions on silver exports add to an already tight market, while industrial demand continues to rise across energy, electronics, and infrastructure.

He also warns that short positions remain vulnerable. If silver resumes its advance, forced covering could fuel another sharp leg higher. Schiff has repeatedly stated that once silver decisively cleared $50, a rapid move toward $100 became likely, potentially unfolding faster than many expect.

From his perspective, buyers today are no longer chasing the top. That top, for now, was near $84. The current consolidation above $70 represents positioning for the next phase, not the end of the cycle.