Chris Marcus, founder of Arcadia Economics and author of "The Big Silver Short," broke down silver's rise above US$30 per ounce, outlining the wide array of factors that are driving the metal right now.
He said that silver has followed gold, which started to move around mid-February and early March, spurred on by expectations that the US Federal Reserve was going to cut interest rates. It still has not done so.
"It's been interesting that you would see gold start rallying then, and then silver follow," said Marcus. "I wonder if there's some degree to which, when you have forces like the US debt and the deficits, and the Fed's balance sheet growing over time ... eventually there's going to be some times where you see (gold and silver) start to move."
Also around that time, the US discussed seizing frozen Russian assets to aid Ukraine.
"I wonder if it was the culmination of a lot of these things that have been building for awhile," Marcus suggested.
There's also the fact that the Silver Institute is projecting that 2024 will be the silver market's fourth consecutive deficit.
"I don't think we're at a shortage of silver yet, but certainly we have a tight market," Marcus explained during the conversation. "I think all these things add up, and that's traditionally been the way that it happens in gold, but especially silver — where they build up for awhile, and then at some point you see the impact of that."
When asked how high silver could go in 2024, he said that US$50 is possible, but not likely.
"I think silver in the long term — everything that we've talked about is why it's still to me a good long-term bet," Marcus said. "In the short term I would expect you're going to see it pretty darn volatile. I mean, is there a chance for US$50 this year? There are scenarios in which that could happen, but I don't know that I would say that we're in a guarantee of that. But certainly with some of the things that are building beneath the surface, yeah it's possible."
Watch the interview above for more from Marcus on what could be in store for silver this year.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.