Silver Rally Too Strong to Short: Trading Expert
Peter McGuire, CEO of trading.com, warns against shorting silver despite its recent retreat from record highs. Silver reached unprecedented levels, briefly surpassing Nvidia's share price. Despite a 10% decline from its peak, silver has gained over 170% year-to-date. McGuire cites supply shortfall, industrial demand, short covering, and speculative inflows as key drivers. He projects silver to reach $90-$92 per ounce and gold to hit $4,750 per ounce by January 2026.
*this image is generated using AI for illustrative purposes only.
Peter McGuire, CEO of trading.com, has issued a strong warning against shorting silver despite the precious metal's recent retreat from record highs, comparing the white metal's momentum to "a V12 Lamborghini on an autobahn." Speaking to CNBC-TV18 on Monday, McGuire emphasized that current market conditions suggest more upside potential ahead.
Record-Breaking Performance Amid Volatility
Silver reached unprecedented heights on Monday, with spot prices crossing $82 per ounce in early trading. At its peak, the precious metal briefly commanded higher per-unit value than shares of Nvidia, the world's most valuable listed company, making it the second-most valued asset after gold.
| Metric | Current Status |
|---|---|
| Monday Peak Price | Above $82.00 per ounce |
| Current Level | Below $80.00 per ounce |
| Decline from Peak | Nearly 10% |
| Year-to-Date Gain | Over 170% |
However, the rally has shown signs of volatility, with prices declining nearly 10% from the record levels and settling back below the $80.00 per ounce mark by the end of Monday's session.
Exceptional Year-to-Date Performance
Silver's performance has been nothing short of remarkable. Having begun the year at sub-$30 levels, the white metal has surged over 170% with three trading sessions remaining in the year. This trajectory positions silver for its best calendar year performance since 1979, when it gained over 200%.
"If you would have told me that this time last year, I would have laughed, and I would have said I don't think it can get there, but now it has," McGuire acknowledged. "We have got a couple of days left of trade, so we might even punch out 180%."
Multiple Drivers Supporting Rally
McGuire identified several key factors driving silver prices higher, creating a confluence of supportive conditions for the precious metal:
- Supply shortfall pressures
- Strong industrial demand
- Need to cover paper short positions
- Significant speculative inflows
These combined forces have created what McGuire describes as "very dynamic trading" conditions, with momentum remaining strongly tilted toward the upside.
Bullish Long-Term Outlook
Despite acknowledging the current "overdrive" conditions, McGuire maintains an optimistic long-term perspective for precious metals. His projections extend well into 2026, with specific price targets for both silver and gold.
| Metal | Target Price | Timeframe |
|---|---|---|
| Silver | $90.00-$92.00 per ounce | End of January 2026 |
| Gold | $4,750.00 per ounce | End of January 2026 |
"It's too early to talk about being short at the momentum and the upside is very strong, and let's just see where it rolls," McGuire concluded, reinforcing his stance against premature short positions in the current market environment.
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