Structural Shortages and Strategic Demand Drive Silver Price Toward $100

The price of silver (XAG) has historically broken past $90 per ounce, causing US Silver Eagles to sell for over $100 at the dealer level. This unprecedented demand led the US Mint to suspend all silver numismatic sales, citing extreme price volatility and an inability to accurately price products, which suggests a physical supply strain rather than speculative excess. The rally is attributed to safe-haven demand, expectations of Federal Reserve rate cuts, tightening physical markets, and booming industrial use. Market mechanics are intensifying the move, as CME margin hikes are forcing short-sellers, including producers and bullion banks, to cover positions rapidly due to delivery obligations. Analysts project silver could surpass $100, noting a structural imbalance where paper promises vastly outnumber physical metal. Furthermore, some experts suggest strategic extraction of physical silver by central banks and sovereign wealth funds, coupled with China's export restrictions, is accelerating the collapse of paper dominance over physical supply.

(Source：BeInCrypto)