“Structural deficits are colliding with a demand boom we’ve not seen in decades,” Hansen explains. “A decisive break above $50 clears the runway straight back to $54.50. Once that ceiling shatters, the path towards $75 or even $100 – become the next long-term Supercycle targets.”
The Dollar’s Decline Is Supercharging The Rally
The macro backdrop is turning into rocket fuel. The U.S. dollar is down more than 11% in 2025 – its steepest annual decline since the early 1970s. Analysts at Morgan Stanley expect a further 10% slide by 2026 as fiscal deficits expand and political pressure mounts on the Federal Reserve.
Trump’s “Liberation Day” economic agenda, combined with deteriorating confidence in Washington’s policy direction, has fractured the dollar’s safe-haven appeal.
In a recent note, The Gold & Silver Club highlighted:
“The U.S. dollar has entered a long-term bear market, igniting a seismic shift into hard assets. Gold and Silver cannot be printed, devalued or politically manipulated.”
In periods of currency debasement, capital historically floods into scarce assets. Silver is now at the centre of that flow.
Silver Upgraded to Strategic National Resource Status
In a major policy shift, the U.S government recently elevated Silver, Copper and Uranium to its official critical minerals list – a classification typically reserved for materials essential to national security and technological independence.
“This reclassification opens the door to stockpiling, subsidies and investment incentives,” Hansen notes. “With more than 70% of U.S Silver refined overseas – and China dominating capacity – this shift introduces a powerful new geopolitical catalyst.”
Silver has now moved into the same strategic category as Lithium and Rare Earth metals. The implications for long-term price support are profound.
Saudi Arabia Makes Its First-Ever Silver Purchase
Another bullish wildcard emerged this summer. Saudi Arabia’s central bank quietly added Silver to its reserves for the first time in history.
Central banks have been net buyers of Gold for years – but Silver entering the equation represents a tectonic shift. Sovereign diversification could tighten the market in ways not yet fully priced in.
At the same time, the Kingdom is investing billions in AI-driven mega-data-centres along both coasts, intending to export computing power globally. Executives from OpenAI, Google, Intel, Qualcomm and Oracle are already engaged in high-level talks.
Silver’s role in high-performance electronics makes it a strategic beneficiary of this build-out.
Supply Is Shrinking – And the Market Is Tightening Fast
Mining output continues to decline. New projects are limited. Global supply deficits are compounding.
Silver is facing a perfect storm: surging demand, tightening supply, accelerating investment flows and structural macro support.
Everything points in one direction – higher prices.
The Time to Position Is Now
With rate cuts approaching, the dollar weakening, sovereign interest rising and industrial demand exploding, Silver is entering its most compelling accumulation phase since the Global Financial Crisis in 2008.
From now to year-end could be one of the most lucrative periods for precious metals seen in over a decade.
The last time Silver traded at these levels during a structural deficit, it doubled within months.
“This is the moment decisive traders have been waiting for,” Hansen concludes. “The next historic move in Silver is already unfolding – and those still waiting on the sidelines won’t just miss a rally – they’ll miss the greatest wealth transfer of our generation”.
