This is why I sell my silvers and stack bitcoin.
Silver has never truly functioned as hard money.
Whenever its price shoots up dramatically, the same cycle plays out without fail.
Rising prices spark stronger incentives to produce more silver.
That increased motivation leads to a flood of new supply.
Eventually, the extra supply drives the price right back down.
History shows this pattern over and over again.
Take the famous 1979–1980 surge: silver rocketed from about $6 an ounce to almost $50. Mining output couldn’t ramp up instantly, but additional supply still poured in quickly—from recycled scrap, melted-down jewelry, liquidated stockpiles, and tightening credit conditions. The bubble inevitably deflated.
Here’s the key detail that often gets overlooked:
The vast majority of silver isn’t mined primarily for its own sake. It comes as a byproduct of extracting copper, lead, zinc, or gold. When silver becomes pricey, mining companies push their operations harder—they process lower-grade ores, re-treat old tailings, and recover silver that wasn’t worth bothering with before.
In the long run, supply always rises to meet demand.
This is precisely the argument Saifedean Ammous drives home in The Bitcoin Standard: whenever something grows more valuable, people find clever ways to produce more of it.
That’s why silver—and really any metal—ends up inflating its own supply over time. Gold does the same thing.
This current silver rally won’t break the mold.
As prices climb, more ounces will get pulled from the earth and from existing stockpiles. The market will rebalance, just as it always does.
Bitcoin stands apart.
Its supply remains completely fixed, no matter how high the price goes.
That’s what separates a scarce digital asset from every traditional commodity—and what makes it genuine sound money.
