(Kitco News) - Silver prices may be down from January’s record highs above $120 an ounce, but the days below $20 are long gone, according to one fund manager, who sees the precious metal building an elevated base.
In an interview with Kitco News, Nate Miller, Vice President of Product Development at Amplify ETFs, said that silver appears to be entering a period of consolidation after its sharp early-year rally, but the broader outlook remains constructive as both industrial demand and macroeconomic forces continue to underpin the market.
“It’s obviously maybe a little less exciting when silver’s at $60 or $70 than $120,” he said. “But it’s still relevant… and going to continue to be an important asset.”
He added that the market is finding important stability, which signals a structural shift after decades of trading between roughly $25 and $30 an ounce. He said that while the metal has yet to break decisively higher, holding these elevated levels is itself a positive development for both investors and producers.
While the current consolidation phase is frustrating for some, Miller described the price action as a necessary “healthy digestion.” However, he remains optimistic that prices will eventually push higher, driven either by renewed investor interest in precious metals or by strengthening industrial demand.
At the same time, Miller cautioned investors that a return to extreme upside targets—such as $100 or $120 silver—will likely depend on macroeconomic conditions, particularly inflation.
“If inflation stays sticky, that could potentially reignite the precious metal’s store of value side of the trade,” he said. In that scenario, both silver and gold would benefit as investors seek protection against declining purchasing power.
While silver has some upside, Miller pointed out that gold in particular remains more directly tied to its role as a monetary metal. He emphasized that in an inflationary environment, gold’s price action is largely driven by its store-of-value appeal, whereas silver straddles both monetary and industrial demand channels.
On the flip side, Miller explained that if inflation pressures prove temporary, silver’s upside may be more modest, supported primarily by its industrial use. In this scenario, he sees prices potentially trending in the $70 to $80 range rather than making a dramatic breakout.
He also pointed out silver’s role as a portfolio diversifier, describing the sector as a “non-correlated source of returns” relative to traditional equities and fixed income. This characteristic, combined with the current price consolidation, may present investors with an opportunity to gradually rebuild positions.
Beyond silver’s investment demand, Miller also noted that price stability has important implications for the mining sector.
He explained that elevated but steady prices are giving operators greater confidence to move forward with projects that were previously uneconomic.
“Projects that didn’t make sense at $25 an ounce do make sense at $70,” Miller said, adding that price stability is critical for long-term planning. He also pointed out that rising production could attract new investment capital to the sector.
From an investment perspective, Miller said that he continues to view silver equities—especially junior miners—as a compelling but volatile opportunity. Their higher sensitivity to the underlying metal price can amplify returns during bull markets, though he stressed the importance of disciplined portfolio management. After a year in which some silver-focused strategies delivered gains of more than 200%, he said that rebalancing becomes essential to prevent overexposure.
Although the current environment of economic uncertainty provides some support for the silver market, Miller also noted that it presents some challenges.
Concerns about rising input costs—particularly energy—remain on the radar. While higher oil prices could pressure margins, Miller described the impact as likely temporary. He also noted that many mining companies are in a stronger financial position than in previous cycles, having used higher prices to improve balance sheets rather than take on excessive risk.
