Retail Investors Pour Record Cash Into Silver, Leading to Overcrowded Trade

• Silver prices traded at $91.90 per ounce, up from $72.62 at the start of the year, after hitting record intraday highs above $93 on Wednesday and Thursday
• The current retail-driven rally has exceeded the 2021 meme-stock silver spike, with Vanda Research calling it 'structural accumulation' that warrants treating silver as a core macro trading asset
• Invesco's alternatives ETF strategist warned that silver took 45 years to break $50 per ounce but has 'zoomed past $80 in less than three months', suggesting caution about the rapid price appreciation

Summary: Retail Investors Pour Record Cash Into Silver, Leading to Overcrowded Trade

Individual investors have invested $921.8 million into silver-backed ETFs over the past 30 days, making silver the most crowded commodity trade in the market, according to Vanda Research. The iShares Silver Trust (SLV) has surged 31.3% year-to-date and 210.9% overall, with silver prices reaching $91.90 per ounce on Thursday, up from $72.62 at year-start. Prices touched record intraday highs above $93 on Wednesday and Thursday.

This rally surpasses the 2021 "Silver Spike" that coincided with the meme stock frenzy involving GameStop and AMC Entertainment. However, Vanda Research emphasizes this movement represents "structural accumulation" rather than speculative mania, warranting treatment of silver as "a core macro trading asset." Retail investors are also active in inverse leveraged funds like ProShares UltraShort Silver (ZSL), which doubles daily silver price declines.

The MSCI ACWI Select Silver Miners Investable Index, tracking mining company stocks, has also gained significantly during this period.

Some analysts express caution about the rapid appreciation. Kathy Kriskey, head of alternatives ETF strategy at Invesco, noted that silver took 45 years to break $50 per ounce but has now surpassed $80 in under three months.

Market Implications: The crowded nature of the silver trade raises concerns about potential volatility and reversals. While Vanda argues fundamentals support current levels, the speed and magnitude of gains—combined with heavy retail participation—suggest elevated risk for late entrants. The involvement in both long and leveraged inverse positions indicates sophisticated positioning among retail traders.