Silver has exceeded the price of 100 USD per ounce and has triggered a wave of enthusiasm in the markets. For many investors, it is a symbol of the strength of metals and a harbinger of further records. Polish analyst Daniel Kostecki, however, cools the emotions and argues that there is nothing behind such a sudden movement that should please the economy.
Silver has surprised everyone over the past few months. But should we be happy about it?
Expensive silver is not a reason to celebrate
Silver has reached a historic point in recent weeks. The price of the metal has, for the first time in history, surpassed the level of 100 USD per ounce, establishing a new ATH after a dynamic rally that began back in 2025. Over the last 12 months, silver prices have increased by over 200%, making this period one of the strongest increases in the history of the precious metals market.
The entire situation was commented on by Polish analyst – Daniel Kostecki. He asked directly whether we should really be happy that silver costs over 100 USD per ounce. In his opinion, it is a comparable situation to oil at 200 USD – impressive on the chart, but problematic in the real economy.
Kostecki points out an aspect that often eludes investors in euphoria. Silver is not just a speculative asset. It is an industrial metal, key to electronics, energy, automotive, and new technologies. A sharp rise in its price means higher production costs, pressure on company margins, and indirectly – higher prices for consumers.
In this sense, dynamic rises in silver do not indicate the health of the system, but rather increasing tensions. In the short term, metal holders gain, but in the long term, the entire economy pays. This is exactly the same mechanism we observed in the past in the energy or food markets.
Speculation instead of real value
The analyst goes a step further and challenges the narrative that rising asset prices are inherently positive. In his view, neither stocks, nor Bitcoin, nor metals 'produce' value in a utilitarian sense, which is why they cannot be compared to silver. They mainly serve to change portfolio valuations, not to solve real technological problems.
In the case of commodities, the situation is, however, more dangerous than in the stock market. Expensive silver does not remain a financial abstraction – it directly impacts supply chains. Kostecki emphasizes that, unlike the 'pumping' of financial assets, speculation on industrial metals carries real social costs: inflation, shortages, and pressure on production.
From Kostecki's perspective, current silver prices are not a harbinger of prosperity, but a warning signal. The market shows tensions, uncertainty, and imbalance. In such conditions, the short-term gains of private investors are at odds with the interests of the broader economy.
To get acquainted with the latest cryptocurrency market analysis from BeInCrypto, click here.
