The Dollar’s Deadly Squeeze: Silver Retreats After Soaring to Heights Not Seen in 14 Years
Washington Fans the Flames of Volatility
Folks, here we go again—Washington swinging its big stick, rattling global trade, and lighting a fuse under our already fragile financial system.
This time, silver—which had climbed above $39 an ounce, something we haven’t seen in nearly a decade and a half—pulled back as the almighty dollar strutted higher. Why? Because the president doubled down on tariff threats against the European Union and Mexico. For those who don’t track this every day, let me break it down: Mexico is the largest producer of silver on the planet. You kick that hornet’s nest, and you risk disrupting the entire silver supply chain.
Dollar Strength Masks Deeper Weakness
During U.S. trading hours, silver slipped around 0.8%. That might not sound earth-shattering, but remember: every time the dollar spikes, precious metals priced in dollars get harder for folks overseas to buy. This creates these sudden pullbacks—even though the big picture hasn’t changed one bit.
Let’s not kid ourselves: the appetite for physical silver is expanding fast. Since February alone, investors have poured into silver-backed ETFs, scooping up 2,570 metric tons—so much so that the physical market in London is starting to feel tapped out. A lot of this metal is locked away in vaults, not available to borrow or buy easily. It’s like going to the store to buy flour during a shortage—sure, you see it on the shelves in photos, but try to get your hands on it yourself.
Borrowing Costs Are Sounding the Alarm
Here’s something to really chew on: the cost of borrowing silver for just one month has jumped to more than 6%, compared to virtually zero in normal times. That’s a flashing red warning light if I’ve ever seen one. When demand strains supply this hard, price spikes often follow.
Even after this little retreat, silver is still up 32% this year, outpacing gold’s gains. Think about that—while your dollars are rotting like a car left out in the rain, silver is quietly preserving purchasing power and then some.
Industrial Demand Keeps Squeezing Supply
But it’s not just about wealth protection. Silver is also an industrial metal—vital for solar panels and other technologies. The market is facing its fifth straight year of deficits, meaning we’re using more than we’re pulling out of the ground. That imbalance doesn’t fix itself overnight.
Some traders are trying to downplay the risk of tariffs crossing over into silver, pointing out that the US-Mexico-Canada Agreement technically exempts it. But let’s be honest: in this political environment, exemptions are only as good as the next press conference.
A Small Dip Is Your Big Opportunity
Here’s the hard truth: these pullbacks are often the best windows to make your move. The headlines will tell you the dollar is strong. But strength built on debt, manipulation, and endless printing is about as stable as a house on sand.
Don’t let this moment slip by. Silver dipped slightly, closing at $38.23 an ounce in New York. Gold, platinum, and palladium also pulled back. Meanwhile, the dollar index nudged up another 0.2%—but that doesn’t mean it’s safe to trust.
Protect Yourself Before the Next Shock
If you’re tired of feeling like you’re one tariff threat away from losing everything, it’s time to act. Download Bill Brocius’ free eBook, “Seven Steps to Protect Yourself from Bank Failure,” and learn how to fortify your savings outside the reach of the Federal Reserve and Wall Street.
And if you want more insights like this—unfiltered, unapologetic, and laser-focused on protecting your wealth—subscribe to Dedollarize’s premium research today.
Stay vigilant, my friends. The system isn’t built to save you. But you can still save yourself.
