Goldman Sachs warns extreme silver price volatility likely to persist

Expansion of Silver Price Volatility

Goldman Sachs warns that extreme volatility in silver prices is likely to persist. This prediction follows an extraordinary rally with silver prices rising by approximately 138% in 2025, driven by strong private investor inflows, expectations of Federal Reserve easing, and increased demand for portfolio diversification.

Liquidity Constraints

Thin inventories in London have fundamentally altered market dynamics, amplifying price movement. Goldman points out that this liquidity squeeze exacerbates even modest demand shifts, making the market highly sensitive to changes.

Future Risks

Additionally, the introduction of export controls by China starting in 2025 raises further supply constraints and may exacerbate volatility. As the market continues to normalize, Goldman suggests that silver prices will remain highly reactive.

Conclusion

Given these conditions, investing in silver may favor volatility-tolerant investors, while posing challenges for those seeking stable exposure. Investors should remain vigilant as market instability persists.