Peter Schiff Warns Silver Is Running Out - Investors Urged to Buy Before Shortage

Silver prices declined slightly in early trading on Thursday after reaching a near-record high the previous day. The correction came as Iran pledged to stop executing protesters, reducing fears of potential U.S. military intervention and easing demand for safe-haven assets. The white metal retraced to around $86.50 an ounce after hitting $93.51 earlier in the week. Market participants are closely watching geopolitical developments and the Federal Reserve's policy trajectory for further direction.

Meanwhile, global demand for metals is intensifying due to growing geopolitical tensions and supply-side constraints. China's recent export restrictions on silver, tungsten, and other critical minerals have prompted a strategic shift in Western markets. North American firms, including GoldHaven Resources and American Tungsten, are seeing increased investor interest as they seek to fill supply gaps and reduce reliance on Chinese sources according to analysis.

The U.S. government is also taking steps to secure strategic mineral supplies, with a $2 billion commitment to expand the National Defense Stockpile. Analysts argue that domestic production of metals like tungsten and silver is now a national security imperative, especially with China tightening its grip on the global supply chain as reported.

Why Did This Happen?

The drop in silver prices followed a sharp rise driven by geopolitical tensions and speculative demand. The U.S. and Iran standoff, combined with U.S. President Donald Trump's statements on potential military action, had previously pushed investors toward precious metals as a hedge against uncertainty according to market analysis. However, a de-escalation in the situation led to a pullback in the demand for safe-haven assets, resulting in a short-term correction.

The Federal Reserve's expected pause in its easing cycle has also weighed on silver. Investors are closely monitoring inflation data and the selection of a new Fed chair, as these developments could influence the metal's trajectory. Kevin Hassett, Kevin Warsh, and current Fed Governors Christopher Waller and Michelle Bowman are among the leading contenders for the role as noted by analysts.

How Did Markets Respond?

Despite the correction, silver remains in a strong uptrend. The metal trades above its 20-day exponential moving average at $77.48, and technical indicators suggest continued support for higher prices as long as it stays above this level according to technical analysis. The 14-day RSI at 68 indicates firm momentum, though it is near overbought territory, which could cap immediate upside.

The broader commodities market has also seen a surge in activity, with investment-grade corporate bond sales hitting a near-pandemic high in the first week of 2026. Analysts attribute this to strong demand for dollar-denominated assets and expectations of continued economic growth, especially in the U.S. and emerging markets as reported.

What Are Analysts Watching Next?

Market participants are looking for key triggers that could push silver toward $100 per ounce. Analysts at Jupiter Asset Management and Evelyn Partners believe the conditions are in place for a significant move higher, driven by supply constraints, industrial demand, and continued geopolitical uncertainty according to market forecasts. A key factor will be China's continued export restrictions on silver and other critical minerals, which are expected to persist into 2026 as analysis indicates.

The U.S. dollar's performance and interest rate expectations will also play a crucial role. If the Fed cuts rates more aggressively than anticipated, the appeal of non-yielding assets like silver could strengthen further. Conversely, a sudden spike in inflation or tightening of monetary policy could act as a headwind according to market forecasts.

Investors are also keeping a close eye on geopolitical developments, including the U.S. military involvement in Venezuela and potential discussions between Trump and Chinese President Xi Jinping in the coming months. These events could influence the global perception of safe-haven assets and impact the demand for silver and gold as market analysis suggests.

The outlook for 2026 remains cautiously optimistic. The G20 is expected to grow by 2.9%, led by India and supported by a gradual slowdown in global inflation. However, risks remain, particularly around trade barriers and policy uncertainty. Analysts warn that a resurgence of protectionist measures could dampen global growth and create volatility in commodity markets according to economic forecasts.

Gold and silver prices are expected to remain underpinned by resource nationalism and industrial demand. With central banks continuing to adopt dovish stances and investors seeking protection against inflation and currency devaluation, the case for precious metals remains strong as market analysis indicates.