VC10X - Investing, Venture Capital, Asset Management, Private Equity, Family Office VC10X Micro - Is The SILVER Rally Over? or should you enter now
Jan 1, 2026
Silver prices recently plummeted 15%, but the reasons behind this crash reveal deeper market dynamics. Margin hikes and China's export strategies are at the forefront, not diminishing demand. The future looks bright for silver, with skyrocketing needs from solar energy, AI data centers, and solid-state batteries. Notably, Elon Musk has flagged silver shortages as a critical issue. With an eight-year supply deficit looming, the market is ripe for savvy investors who can navigate the volatility ahead.
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Paper vs Physical Divergence
- Silver's recent price drop was a paper-market event, not a collapse in physical demand.
- Prashant Choubey shows the drop follows a divergence between paper contracts and physical metal.
Margin Hike Sparked The Crash
- The crash was triggered by a 25% margin hike at the CME that forced leveraged sellers to liquidate.
- Prashant Choubey calls it a liquidity event that cleaned out weak hands, not a demand collapse.
China's Export Rules Mask Domestic Demand
- China's export license rules caused panic but reflect domestic hoarding for solar capacity.
- Prashant Choubey explains China restricts exports to keep silver for its own solar industry.