Recently, the performance of silver has indeed been worth paying attention to, and the underlying logic behind it is quite complex. To understand why silver has been continuously rising, we need to look at it from several dimensions.

First is the supply side. Demand in industries such as photovoltaics, new energy, and electronics has been exploding, but mine capacity cannot keep up, and the gap is widening. This is the fundamental reason why silver prices can continue to rise. From this perspective alone, there is long-term support.

Second, expectations of Federal Reserve rate cuts have increased. Under the environment of global liquidity easing, precious metals as a whole have been driven higher, and silver’s financial attributes have also been activated. Capital is seeking an exit, and precious metals have become the choice for many. Coupled with the obvious increase in silver ETF holdings, large amounts of capital continue to flow in, amplifying price elasticity and volatility.

The key is that silver has a dual identity. It is both an industrial metal (because industrial demand genuinely exists) and a safe-haven asset (financial attribute). Currently, these two attributes are resonating together. The industrial demand revalues its worth, while the easing environment reinforces its financial role, creating a magnifying effect.

Looking ahead, if demand from industries like photovoltaics continues to release, and the rate-cut cycle remains unchanged, silver indeed has room to move higher. However, there is a risk point: the silver market is relatively small, making it particularly sensitive to liquidity and market sentiment. Short-term speculation and dollar fluctuations can easily trigger sharp volatility. Therefore, this silver rally is neither purely imaginary nor entirely solid. It is the result of multiple factors—fundamentals, capital flows, and sentiment—stacked together that have created the current situation.