SLV: Riding the Silver Supply-Demand Imbalance
"Silver is a massively scarce resource and one that is melting up right now, especially in comparison to the US dollar. Silver is used in solar panels, electric vehicles, military equipment. Silver is used in AI data center hardware. Silver is literally the best conductor of electricity on planet Earth. But here's the problem. The world is not mining enough of it. The silver market has been running a structural deficit of 160 to 200 million ounces annually. London and Shanghai inventories are at multi-year lows. ETF inflows hit 130 million ounces in 2025 alone, and holdings are now at 844 million ounces, up 18%. Bull targets for silver range from $100 to $175 per ounce. And again, we're bouncing around 60 to 70."
The speaker presents SLV as a trade idea capitalizing on silver's scarcity and structural deficit, with significant industrial demand and bullish price targets indicating substantial upside.
Strong Bullish Call for Silver Investment
"100% silver. 100%. Now, if someone had $10 million, it wouldn't be the same thing because ultimately, you want to continue to buy gold. Ultimately, if when the music stops, it's about gold in my opinion. But the value and the leverage and just the flatout, in my mind best value I've ever seen, most undervalued commodity in the world is still silver."
Andy emphatically advises that for retail investors with modest sums, allocating 100% to silver is optimal given its undervalued status and superior leverage relative to gold. He contrasts this with the approach for larger sums, where gold plays a role for safe storage, indicating a strong conviction that silver offers the best value in the current market.
Trade Call: Trimming Silver Exposure Amid Extreme Runs
"The latest move that we made was in our all‐weather portfolio, which has all of our precious metals. We cut our exposure to silver back to its normal base level last week. We took profits because silver had a huge run and grossly deviated from its long-term mean. With margin hikes at the CME increasing risk in precious metals, we believe it's wise to trim our position now and re-enter if prices come down further."
This trade call details a recent adjustment in the portfolio where silver exposure was trimmed to target levels after a significant price run. The action was justified by the deviation from long-term mean levels and concerns over increased margin rates, suggesting a cautious stance on near-term silver performance.
Avoid Shorting Silver Amid Imminent Squeeze
"I do have a very strong suspicion that somebody's in trouble on the short side and that this is going to get squeezed much higher and that shorting it here would be suicidal. Um going long it here, you know, I think probably works for a while, but you might have to be nimble. I mean, it could run up to 200 and correct back to 100, right?"
Larry warns investors that shorting silver is extremely risky given the potential for a massive short squeeze. He advises that going long on silver—while requiring nimble management—could be a more favorable approach as the metal may surge significantly before a corrective pullback occurs.
Biogaya Shares Boosted by Analyst Price Target Upgrade
"Yeah, so that's not a company I've heard of before actually, but they make probiotic supplements for things like gut health and and immunity, things like that. This is of course something that is kind of all the rage at the moment, part of that broader wellness boom with everyone caring a lot about their protein intake and gut biome and and all of that. You haven't gotten it from Turkey over the past week. Yeah, [laughter] exactly. Um but Bay is up this morning after DNB Carnegie raised the price price target on that stock. Um and said that they could see margins recover quite a lot in 2026 and they expect a really strong sales growth uh for that and the end of this year for for the fourth quarter and then that momentum for earnings to continue to be really strong next year. So all around there's really good news for Baya and this vote of confidence has boosted those shares this morning."
Biogaya, a biotech firm that produces probiotic supplements, is receiving a boost after DNB Carnegie raised its price target on the stock. The analyst highlighted potential margin recovery in 2026 and strong sales growth in Q4, with continued earnings momentum expected into next year, offering a catalyst for further upside.
Trade Call on SLV Driven by AI Demand and Supply Constraints
"So what is my view on SLV as a trade? Well, I see more momentum here. Early January, I see SLV pushing towards $85 on China export restriction panic and continued AI demand headlines and continued dollar debasement. Momentum chasers continue to chase in. Then mid January, it hits $80 to $85. Exhaustion candle hits, profit taking kicks in, and what happens? It sells off to around $70 support. We can shake out. RSI cools from overbought. And then late January, you start getting the reemergence. $75 holds as a new floor. Dip buyers step in. Fresh catalyst. You get more China news, dollar weakness or supply crunch headlines, whatever it is, sends it ripping to $90 through February."
The speaker outlines a detailed trade call on SLV, emphasizing momentum driven by AI-related demand and supply constraints, a tightening silver supply amid geopolitical issues with China, and a weakening dollar. The call notes short-term fluctuations with an initial push to around $85, a dip to $70, and a subsequent rebound to $90, presenting a swing trade opportunity using options to capture this volatility.
Silver Could Reach $100 Ounce: Undervalued by Geological Ratios and Technical Analysis
"Now I want to tell you from a standpoint non-biased you take a 45-year cup and handle [snorts] technical analysis would say the following. When you have the top of the cup at 50 bucks in 1980 and the bottom of the cup at about four bucks in the early 90s, the difference between the two is $46. You add it to the top of the cup when it breaks through, 50 + 46 is $96. That would be technically before you would even re-evaluate where the cup and handle formation would say you're going. I think, and I hate making price predictions, but I will tell you a $100 silver to me is still undervalued. And it is undervalued geologically, mathematically, and from a standpoint of a depleting asset that has plurality in uses."
Andy Schectman provides a macro-level analysis suggesting that silver is undervalued based on longstanding geological ratios and a cup and handle technical formation. He calculates that with gold at around 4300, the inherent value of silver should be near $102 per ounce. Despite hesitancy in price predictions, his reasoning supports a bullish outlook on silver potentially reaching $100, driven by its scarcity and multi-faceted utility.