Silver's 2026 Open: Irresistable Force Meets Immovable Object
Specifically, Institutional buying meets higher Comex margins
Comex Margins
The paper metals markets have traditionally responded to spiking prices by raising margin requirements. Players who can’t come up with the extra money have to liquidate their positions, which causes prices to fall. That accounts for at least part of the brutal end to last year’s silver price action.
The Comex exchange just raised margin requirements again. Does this mean silver will fall hard when trading opens later today? GoldSilver’s Mike Maloney says yes:
Institutional Buying
Meanwhile, the world’s financial institutions have at long last discovered commodities, with many increasing their 2026 allocations for gold, silver, copper, et al. So presumably there are bids lined up to start the process of meeting those targets. Asian Guy (of course) sees this resulting in higher silver prices right off the bat.
Trading vs Accumulating
It really doesn’t matter what silver does today. Its long-term story is that deficits produce shortages, which in turn produce higher prices, so we should be agnostic about any given day’s action. Higher prices are great because we’re long; lower prices are great because we’re still accumulating.
In other words, enjoy the action, but keep stacking.
Asian Guy is a clever Pakistani content generator using AI to both autonomously generate his thesis and present it. Pakistan is the 2nd largest creator of AI generated content (called “SLOP”). AI guy has hit pay dirt focusing on silver bugs. I admire his success. There is nothing wrong with his/her intentions.
To people uninitiated to these content generating AI tools, the intensity of the presentation can fool you into giving the information more credibility than is deserved. Often the creator just runs with whatever the AI agent generates (in minutes) without checking the info.
All AI has useful data, but it is far from 100% trustworthy. Numbers are often inaccurate, as are dates and prices. I look at this kind of content as a way of getting ChatGPT answers, without doing the prompting myself, but not as coming from a knowledgeable expert with market experience providing sage advice.
I’ve lost count the number of times I have caught ChatGPT reaching conclusions based on dubious premises, such as not knowing what year it is or the current price of silver. Just be careful with these tools.
Asian guy... pretty convincing. Whoever's behind it is surely hoping to trade based on the inexpensive hype. Regarding metals: If you're a holder, enjoy the highs and ignore the lows. I have no advice for traders. I'm too old for that drama.