Silver’s $70 Breakthrough: Market Anxiety and Monetary Policy Convergence

(MENAFN- Your Mind Media ) In my view, silver reaching the $70 per ounce level is not merely a fleeting price move or a market exaggeration driven by speculation. Rather, it represents a clear manifestation of a new phase of compounded anxiety dominating global markets. We are witnessing a rare convergence of escalating geopolitical tensions, a gradual shift in the global monetary mood, and economic indicators sending mixed signals. All of this is redefining ’ilver⦣8212;s role—not only as an industrial or hedging asset, but as an advanced safe haven increasingly approa’hing gold’s status within investment portfolios.
From my perspective, the geopolitical factor currently plays the most urgent role in supporting silver prices. The escalation between the United States and Venezuela, accompanied by direct statements regarding the seizure of oil and vessels and the possibility of selling them, reflects a shift from traditional sanctions toward a more aggressive phase that directly affects global energy and trade chains. Historically, when politics enters a phase of unilateral and confrontational decisions, demand rises for assets that are not directly tied to sovereign risk or financial systems. Silver clearly benefits from this shift in investment behavior, especially as it remains relatively cheaper than gold and more attractive to the mid-sized investor.
This scene cannot be separated from the simultaneous tensions in Eastern Europe, where attacks on Russian energy infrastructure continue, adding a new layer of uncertainty to markets. In my assessment, this type of risk does not immediately appear in equity indices or economic data, but gradually seeps into the pricing of precious metals. A savvy investor does not wait for a full-blown crisis to unfold; rather, they move at the first sign of long-term strategic instability.
On the other hand, I see U.S. monetary policy as the most important structural factor supporting silver’s upward trend. Statements from Federal Reserve officials, particularly Steven Miran, reflect a noticeable shift in tone from tightening toward caution. Acknowledging that failing to ease monetary policy could increase recession risks carries an implicit message to markets: high interest rates are no longer as safe an option as they were a year ago. For a non-yielding asset like silver, a decli—e—or even stabiliza—ion—of real yields removes one of the main obstacles to its rise.
In my view, markets have already begun pricing in an interest rate cut scenario, even if it has not yet been officially announced. With every decline in expectations for future yields, silver becomes more attractive as a store of—value—especially in an environment characterized by eroding purchasing power and persistent, understated inflationary pressures. This is why I believe silver is not merely reacting to current events, but anticipating a more accommodative monetary phase in the coming months.
As for U.S. econo—ic data—most n—tably GDP—I see it as a delicate balancing factor in the broader picture. While forecasts point to relatively strong growth at 3.2%, the slowdown compared to the previous quarter carries important implications. The U.S. economy is still growing, but it is gradually losing momentum. This is precisely the scenario that prompts investors to rebalance portfolios rather than exit risk altogether. In such cases, silver becomes an ideal choice, as it combines safe-haven characteristics with the potential to benefit from any subsequent industrial recovery.
I do not believe that silver reaching the $70 level necessarily represents a final ceiling for the move. Instead, it may serve as an important psychological and technical testing phase. If geopolitical tensions persist at current levels, and markets become confident that the Federal Reserve is genuinely approaching a monetary easing cycle, then a breakout above this level becomes—a realistic—n—t exceptional—scenario. That said, I do not rule out periods of technical correction, but I believe they will be limited and temporary as long as the underlying supportive fundamentals remain intact.
In conclusion, I believe silver is undergoing one of the most significant revaluation phases in its modern history. It is no longer merely a secondary metal trailing behind gold, but has become a tool that reflects market fears stemming from both politics and economics. My personal expectation is that silver will continue to hold elevated levels and may even reach $100 over the medium term, with a gra—ual upward bias—especially if the global economy enters a phase of "prolonged uncertainty",an environment in which safe-haven assets thrive without contest.

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