Silver has recently become a hot topic in the market. The single-day increase reached 11%, but the underlying logic is worth a closer look.

Stockpiles hitting bottom is the trigger point. Wall Street traders discovered that silver inventories were rapidly declining, so they carefully designed a short squeeze. First, they pushed the price up, then initiated short positions to catch the falling knife, turning into prey. Short sellers initially aimed to hedge risks through physical delivery, but the market simply couldn't buy real silver—this was awkward. The shorts were tightly pinned down, forced to cover, which further drove up the price, creating a vicious cycle.

Why is silver so tight? Ultimately, it’s due to changes on the demand side. The chip industry, new energy batteries, solar panels—all these high-growth sectors rely heavily on silver. While gold has also risen, industrial demand is not as strong—gold is more about monetary properties and safe-haven assets.

Data speaks: silver's increase this year far exceeds that of gold, driven by the combined resonance of its monetary and industrial attributes, plus the brutal liquidation by short sellers. Gold is similarly terrifying—rising from last year's surge to a 70% increase this year. The most profound signal of this sustained upward trend is quite clear—the market has already lost confidence in the dollar's long-term outlook. The trend towards yenization may already be a fait accompli.