Economist Peter Schiff said silver is positioned for a historic surge above $100 next year as mounting macroeconomic stress and structural supply issues reshape the market outlook.
Posting on social media platform X on December 27, Schiff argued that growing fiscal deficits, inflationary pressures and weakening currencies are creating powerful tailwinds for precious metals.
Silver can easily pull back, but it’s unlikely it gets near $50 again.
Schiff said, emphasising that any corrections would likely be temporary within a broader bullish trend.
He added that, despite expected volatility, silver prices should decisively clear the $100 level next year, calling the current setup fundamentally different from past cycles.
Schiff made the comments while responding to scepticism from a market commentator known as Finance Guy, who warned that silver’s rally could end in a sharp reversal.
The critic acknowledged upside potential but said silver could spike above $100 before correcting back towards $50, adding that gold or bitcoin may be more attractive long-term holdings.
Schiff rejected that view, reinforcing his belief that deteriorating macroeconomic conditions favour silver and gold over risk assets during the next economic phase.
Recession is bullish for gold and silver as it results in larger federal budget deficits, interest rate cuts, expanded QE, and a weaker dollar.
Schiff said.
He linked his outlook to rising government debt levels, persistent fiscal shortfalls and declining real interest rates, trends that have historically supported hard assets.
Supporters of the bullish case also highlight chronic silver supply deficits and limited mine production growth as factors tightening the market.
Strong industrial demand from solar panels, electric vehicles, electronics and grid infrastructure is also seen as underpinning long-term consumption.
Analysts note that silver demand is relatively price inelastic in key industrial uses, reducing the likelihood of demand destruction even during price rallies.
However, critics continue to warn that silver remains one of the most volatile major commodities, often amplified by leverage-driven speculation.
Silver’s history of deep and rapid corrections underscores the risks for short-term traders despite its appeal as a long-term inflation hedge.
The debate highlights a growing divide between investors seeking stability in precious metals and those favouring digital assets or alternative stores of value.
At the time of reporting, Bitcoin price was $87,669.15.