Eric Sepanek
SBC Founder
Eric Sepanek is the founder of Scottsdale Bullion & Coin, established in 2011. With extensive experience in the precious metals industry, he is dedicated to educating Americans on the wealth preservation power of gold and silver.
Silver is heading for $40/oz within the next three months, says Tavi Costa. The Macro Strategist at Crescent Capital expects a devaluing dollar, record-shattering gold prices, and an inflated tech sector to push investors toward silver.
This capital influx would collide with another supply deficit, suggesting higher price action. On the technical side, Costa believes silver is about to break out from a bullish cup-and-handle pattern.
Capital Rotation into Silver
A growing number of market dynamics are setting the stage for a potential shift in investor capital toward silver:
Falling Dollar
Recently, the USD sank to a three-year low as Trump’s global tariff regime freezes trade, tanks GDP forecasts, increases chances of a recession, and harms dollar confidence. Costa thinks “the dollar is at its peak,” suggesting a continued downward trend. Silver and other “ignored” asset classes may receive some of the capital shifting out of the dollar, especially as Deutsche Bank warns of the greenback losing its safe-haven status.
Rising Gold
After notching an impressive 27% rally in 2024, gold is off to the races again in 2025. Some experts are even predicting the yellow metal could blow past the $4,000/oz milestone. Despite rising price forecasts, gold’s higher price point is making some more budget-conscious investors reconsider. Silver is a no-brainer choice for those looking to ride the precious metals wave at a lower entry point, according to Tim Murphy, Precious Metals Advisor at Scottsdale Bullion & Coin.
Overvalued Tech
Tech-related stocks dominate the S&P 500, with the sector making up over 40% of the index, and the “Magnificent 7” alone accounting for 43% by market capitalization. Furthermore, this collection of tech giants has an average forward price-to-earnings (P/E) ratio of 28.3x, far beyond the healthy range of 15x to 20x. Costa thinks these indicators suggest an unjustified evaluation, which would lead to a shift in investment focus from stocks to other assets like silver.
Rising Demand, Tightening Supply
As investor interest rises, silver supply remains flat. This puts 2025 on track to mark the fifth consecutive year of a supply deficit, with demand outpacing available resources. As a result, prices are supported as more investors compete for limited silver.
This deficit is expected to worsen due to a surge in demand from the renewable energy sector, particularly solar energy, which is projected to consume nearly 100% of the global silver supply by 2050.
Technical Breakout to $40
A shiny combination of shifting capital, rising investor interest, and limited supplies is preparing silver for a “significant move” upward. Costa sees the gray metal reaching $40/oz this quarter, representing a considerable rise in a relatively short period.
From a technical standpoint, he highlights silver’s bullish cup-and-handle pattern as a signal of a potential breakout. This price target aligns with the average 2025 silver forecast from a range of experts.