If you are sitting on some that is. Otherwise, the question is, should I buy now?
My reading of the situation is that silver at 110 dollars an ounce is a play with limited downside and unlimited upside. So it's a Buy even at these levels.
But, but,
The prices have gone up 250 percent in one year.
It is highly volatile.
True. But the market does not price past moves, it prices future expectations. And volatility is different from risk.
Why is it a play with limited downside?
The industrial demand, including new uses
The classification of silver as a critical mineral by the US
China introducing export controls
The de-dollarisation process that is underway
Increasing geopolitical uncertainty
The ratio of gold to silver prices compared to historical levels
Why is it a play with unlimited upside?
All the factors I listed above, plus
The fact that silver is being rediscovered as a monetary metal. It has been a monetary metal for 5000 years, but we have forgotten that
The fact that retail investors are just beginning to discover it
The short squeeze on the big billion banks that is imminent and in fact underway
The scarcity of above ground available stocks
The fact that most silver that is consumed for industrial use does not come back
The fact that eighty percent of silver being mined currently is accounted for by industrial needs, and the balance twenty percent is not sufficient to meet investment demand
The fact that the price of silver has been kept suppressed for fifty years. What we are seeing now is not a routine upmove but a structural repricing, a move to a new reality
The fact that it is cheap when looking at the gold -silver ratio, the Dow-silver ratio, and the inflation adjusted price for the 1980 and 2011 highs
What about Gold then?
Gold is the mother ship. When you sell your silver, shift into gold.
And when would that be?
When the gold silver ratio drops below 30
And when would that be?
Soon
What about stocks?
Are you sure you want too much of stocks in your portfolio right now? Exit, and move to metals
What about other metals?
Copper, lead, zinc, uranium, are all good. They are all only possible in Futures in the Indian market, or in related stocks. Uranium is not possible to invest in In the Indian market.
Anything else?
Energy stocks, oil futures
What if I am already in silver and want to book some profits, say, exit twenty percent of my position?
Sure, not a bad idea to do that
If I exit, and don't need the money right now, where should I put it, apart from gold?
Look at platinum. It is cheap right now compared to silver and to gold
Where do I get platinum in India?
Zaveri Bazar in Mumbai
If gold and silver are shooting up like this, does it indicate troubling times ahead?
Yes
Dinesh Gopalan,
30 January, 2026
( Posted to my blog https://www.dineshgopalan.com)
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