Could Silver Be the Most Undervalued Asset? Matthew Piepenburg Thinks So

Added: 2026-05-25

[00:00:04]Yeah, what are your thoughts here? I mean, why wouldn't an economic kind of slowdown crush silver before the monetary thesis has time to play out here?

[00:00:14]Well, I mean, there's certainly there are headwinds and tailwinds on any ocean trip, whether you're heading, you know, east or west, north or south off the off of any peninsula, you'll see different currents and different winds. You could see demand, industrial demand uh for silver weaken the same time that it's the supply and demand mismatch, which is really 5 years of of a consecutive you know, now at this point, really a billion uh ounces of silver in a supply deficit after compounding at 200 million ounces per year. That supply and demand mismatch is extraordinary. That's stronger than even the down than even the impact of lower demand from the industry if we see a recession. I think the military uh needs alone uh for silver would still keep a natural demand despite a recession. Uh it's not just US markets, even if we have a global recession, you know, you're going to see in Asia, certainly in China with solar panels and EVs. And and again, silver far more in use in the military. That's why we made it a critical minerals uh on the critical minerals list last year.

[00:01:15]We're as we're wasting a lot of our missiles right now, they have to be rebuilt. The silver is still going to be a part of it. I think the demand for silver and the supply and demand mismatch will be greater forces, bottom line, than any industrial demand um slowdown in a in a recession. But certainly that can affect supply and demand. And certainly uh the paper exchanges can affect the price. But supply and demand, just like everything in the end, finally gets the last laugh.

[00:01:42]I'm not here to time it. Many in the silver space are far more bullish than I am, but I'm easily at $200 silver, and Egon is extremely bullish. And others who track the technicals and fundamentals aren't worried about trying to time this direction. They're just sitting back and letting the dollar shoot itself and letting the US shoot itself and letting paper money shoot itself. So, we're just patiently waiting for silver and gold. Silver will move in a beta trade to gold in a bull market.

[00:02:07]Gold's bull market is just beginning.

[00:02:09]So, we're not really too worried about the timing. There are forces, of course, we've seen backwardation the futures market on silver with other indicators.

[00:02:16]It's very bullish on silver. We look at what SocGen traders are doing. I talked to traders what they're doing. Their long-term play here is very bullish, but again, if you're a swing trader, a day trader, an arbitrageur of precious metals, best of luck to you. I'm no help to you.

[00:02:30]We're long-term preservationist thinkers. We're long-term cynics on paper money and that is Ray Dalio's point. If you understand economics and history, you'll have no problem gaining faith in gold and silver. But certainly there can be headwinds and tailwinds as this process moves. None of these metals move in a straight line. But against the dollar, all commodities in general are just ripping in price because the dollar's gotten weaker. The gold and silver are commodities 90% of the time, but they're they're money 10% of the time and we're in that moment right now where gold and silver are monetary metals at this particular turning point in history. So, not only is commodity profile, but silver and gold's monetary profiles are going to have a heck of a run in the next 5 years.