It’s time to take profits in silver after record-breaking run, these analysts say

Core Viewpoint - The significant surge in silver prices, which increased by 126%, has raised concerns among analysts about the sustainability of this rally and whether it has outpaced fundamental factors [1][4]. Group 1: Drivers of Silver Price Surge - Silver's price increase in 2025 has been attributed to several established factors, including the debasement trade, lower interest rates, persistent inflation, geopolitical instability, dollar weakness, central bank demand, and strong industrial demand, particularly in solar and electric vehicle sectors [2]. - Physical shortages of silver at various times in 2025 have also contributed to notable price spikes [3]. Group 2: Analyst Perspectives - Analysts like Brett Donnelly express skepticism about the sustainability of the rally, suggesting that the gains appear disconnected from fundamental economic indicators, such as the U.S. deficit, which has not changed significantly [4]. - Donnelly notes that historically, after a 100% rally in a single year, subsequent returns tend to be poor, advising against holding silver into 2026 and recommending a shift to gold for those seeking debasement plays [5][6]. - Sameer Samana highlights technical indicators, noting that silver is close to being overbought, suggesting that investors may want to take profits and wait for a price pullback [7].