Silver may be setting itself up for a major price move, according to Otavio “Tavi” Costa, a leading macro strategist at Crescat Capital.

Check out the current price of SLV stock here.

What Happened: On Monday, in a post on X, Costa highlighted a technical signal for the precious metal, a surge in the lease rates, or the cost of borrowing silver for selling short.

He believes this echoes a similar pattern that was seen with Platinum just weeks before it broke out. “Silver lease rates are surging, just like platinum did before its major breakout a few weeks ago,” Costa said.

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“If it looks like a duck and quacks like a duck…” he says, implying that the market setup clearly imitates classic breakout scenarios seen with precious metals in the past.

Costa cites data from Bloomberg in his post that shows a spike in lease rates, which are now at a little over 6%, relative to its near-zero historic levels, hinting at tightening supply and growing investor demand.

Why It Matters: Last week, economist Peter Schiff made the case for buying Silver over Bitcoin, touting the former’s limited downside risks, and being on the cusp of its “next big leg up.”

“Even if Bitcoin keeps rising for a while, silver should rise much more. And while Bitcoin can easily crash, silver's downside seems very limited,” Schiff said.

Analysts have been increasingly bullish in recent months, pointing at the gold-to-silver ratio that breached 100:1, meaning that gold became worth 100 times more than silver per ounce. This is seen as a rare signal, that is often followed by an outperformance by Silver.

Price Action: Over the past month, Silver has outperformed gold, rising 5.65%, compared to a 2% decline in the price of gold. Silver currently trades at $38.31 an ounce in the spot market, up 0.61% on Tuesday.

According to Benzinga’s Edge Stock Rankings, the iShares Silver Trust has a strong Momentum of 82, with a favorable price trend in the short, medium and long term. Click here for deeper insights into the fund and its performance.

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