Is silver movement similar to meme stocks? Former Morgan Stanley strategist warns: Silver prices may be cut in half from current levels

JPMorgan’s former chief strategist and co-head of global research, Marko Kolanovic, stated that by late 2026, silver prices could drop to about half of their current levels.

Last week, silver prices broke through the $100 mark. On Monday this week, silver experienced a sharp correction after reaching a record high. Spot silver surged by as much as 14%, reaching $117 per ounce, then plummeted, erasing all intraday gains, and closed at approximately $103.7 per ounce.

Kolanovic believes that the recent sharp rise in silver prices is not driven by fundamentals, but mainly fueled by speculative behavior, and describes this rally as “the result of meme traders attempting to dominate the market.”

Meme traders refer to retail investors driven by social media, online trends, and community sentiment, who follow the hype to speculate on assets.

Against the backdrop of increasing political uncertainty, both silver and gold prices have continued to rise recently. In fact, the prediction market currently estimates about an 80% probability of a partial government shutdown in the United States before the end of this week, further boosting demand for traditional safe-haven assets.

As a result, silver prices have increased by approximately 54% this year, with a gain of about 264% over the past year.

However, Kolanovic warns that this strong upward momentum is unlikely to continue. He believes the current prices are unsustainable, and silver could fall back to about half of its current level later this year.

In fact, other analysts share similar views with Kolanovic, considering silver’s current performance quite similar to meme stocks—characterized by rapid rises and falls.

On Monday, trading volume for popular silver exchange-traded funds (ETFs) and related options contracts soared to record highs. Some analysts believe that the simultaneous surge in price and trading volume is enough to suggest that silver is being traded like a meme stock.

Mike Antonelli, a market strategist at US financial services firm Baird, posted on X on Monday, comparing silver to the original meme stock, GameStop.

“What’s the difference between silver now and GameStop? Isn’t this just a meme hype?” he wrote. “Does silver have industrial uses? Of course it does, no doubt about it. But over the past month, there has been no change in industrial demand, yet prices have risen by 65%. This is the environment we’re in: when asset prices rise rapidly, everyone rushes in without barriers.”

Warren Patterson, head of commodities strategy at ING, said, “The silver market is smaller and has the dual nature of both an industrial metal and an investment metal, which amplifies price volatility.”

He added, “Although market conditions remain volatile, the broader macro environment remains relatively bullish. Geopolitical tensions, central bank purchases, and structural supply gaps all position gold and silver favorably.”

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(Source: Cailian Press)