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Kathir Azhagan's avatar

Volatility is silver’s middle name

It dropped from $80 to $75 in a SINGLE DAY last week.

That’s a 6.25% haircut in 24 hours.

Gold never moves like that, Gold is a monetary metal vs Silver is an Industrial metal.

"When the shoe shine boy is giving you stock tips, it's time to sell." - Silver falls in this slab now!

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Smita's avatar

Absolutely....silver’s volatility cuts both ways. It moves quickly and anyone not ready for that will feel it. Gold behaves like a currency. Silver behaves like a metal that’s actually being used in solar, EVs, electronics, everything.

The “shoeshine boy moment” only shows up when hype gets louder than logic. Right now I think the fundamentals still feel stronger than the noise.

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Prakash KR's avatar

Yes true, Also RBI new guidelines allows Commercial banks & NBFC to give loans to silver ornaments & coins. Globalt central banks have started to accumulate silver as strategic reserves.

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Smita's avatar

Yeah, it really does feel like silver is entering a different zone now. When bigger institutions start giving it attention, it is usually a sign that the long-term story is getting stronger than most people realise.

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Neural Foundry's avatar

The industrial crossover point is what most people still miss, treating silver like jewelry when its actually become infrastructure. That solar panel appetite stat (198M ounces) combined with 7-10 year mine timelines creates a structural squeeze thats way harder to fix than most commodity deficits. The gold-silver ratio snapback to 65:1 was overdue but I dunno if thats stable given how diferent the demand drivers are now compared to when that ratio was historically relevant.

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Smita's avatar

Absolutely, silver’s demand has changed so much that the old ways of judging it don’t fully work anymore. The market is still figuring out how to price a metal that’s now essential for modern tech. The next few years will show what the new normal really is.

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Amar's avatar

What a lovely article you have written, full of witty remarks and humour. Kudos for making things simple yet profound. Great going. 👍

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Smita's avatar

Thank you so much… really glad the writing connected. Your encouragement means a lot 😊

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PRABAKSRAN BOOPAL's avatar

As you have rightly put, what goes up has to come down also. So we must plan an allotment for precious metals, especially GOLD, in our portfolio.

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Smita's avatar

True, everything moves in cycles so having some gold in the portfolio always helps. A little balance goes a long way.

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