Silver once surged past $84 to set a new high, then quickly dropped 5% before rebounding. Analysts warn: we are witnessing a generational bubble

Driven by speculative trading and structural imbalances in supply and demand, silver prices rose further this morning (29th) and historically broke through the $84 per ounce mark. Subsequently, many traders took profits, leading to a temporary drop of over 5% during the session, hitting a low of $75. However, with support at the lower level, it rebounded again, currently reported at about $80.44, up approximately 1.6%. Some analysts bluntly stated that investors are witnessing "a generational bubble." In fact, silver has accumulated nearly a 180% increase this year. The Crazy Surge Partly Originates from Musk's Remarks According to Bloomberg, the crazy surge in silver during the early hours of Monday was partly due to comments made by Tesla CEO Elon Musk on the social platform X over the weekend. In response to a post regarding the rise in silver, he stated, "This is not good; many industrial processes require silver." This remark temporarily fueled the frenzy in the silver market. The report also cited Wang Yanqing, chief analyst of precious metals at CITIC Futures, stating that the current market is heavily speculative and added that discussions about Beijing tightening exports are unfounded. Additionally, Tony Sycamore, an analyst at IG Markets Australia, stated, "There is no doubt that we are witnessing a generational bubble in silver." He pointed out that new mine development can take up to 10 years, while funds are flooding in like "moths to a flame," making it difficult to predict when the bubble will burst. Silver Supply and Demand Imbalance with Spot Premiums as High as 7% Compared to gold, silver has many practical properties, making it an important component in various products such as solar panels, AI data centers, and electronic products. Tony Sycamore indicated that the recent dominant driving force is the severe structural supply and demand imbalance in silver, triggering a rush for physical metal, leading buyers to be willing to pay premiums of up to 7% for immediate delivery