Silver recorded a blowout year, with prices surging to $80 an ounce for the precious metal. The strong performance has also stirred activity in prediction markets, encouraging punters to speculate on its short-term direction.
Silver’s Surging Odds On Polymarket
The odds of the white metal reaching a record $90 per ounce by the end of January stood at 26% on Polymarket, up from 22% the day before. Similarly, the chances of it exceeding $85 jumped to 45% from 29%,
Conversely, bookmakers gave silver an 84% chance, the highest among all outcomes, of falling below $70 in this time period. Moreover, they lowered the chances of the white metal surpassing $100 to 14%.
This market will resolve to “Yes” if, on any trading day, the official CME settlement price for silver futures equals or exceeds the specified price by the last trading day of January.
See Also: What is Silver Used for? The History of Silver’s Uses
Polymarket, based on Polygon (CRYPTO: POL), allows users to buy “Yes” and “No” shares in USDC (CRYPTO: USDC). The shares representing the correct outcome are paid out $1 USDC each upon market resolution.
The prediction platform is making a staggered comeback in the U.S. market and is getting rolled out to those on the waitlist.
Silver’s Record-Breaking Rally
The odds come amid a breathtaking rally that has pushed the precious metal to its strongest annual performance since the late 1970s
Year-to-date, spot silver has gained over 140%, outpacing gold, equities and Bitcoin (CRYPTO: BTC), driven in large part by acute physical shortages in China, where a retail buying frenzy has collided with tight supply
The iShares Silver Trust (NYSE:SLV), which reflects the price of the metal, has surged 161% this year.
Earlier this year, Maria Smirnova, a portfolio manager at Sprott Asset Management, said that the commodity’s rally was only just getting started due to the shrinking supply, potentially giving rise to a price squeeze.
Price Action: At the time of writing, spot silver traded at $73.05 an ounce, down 4.22% in the last 24 hours, according to data from Benzinga Pro. The SLV ETF closed 4.50% higher at $68.98 during Tuesday’s regular trading session
Photo Courtesy: MIKE MANIATIS on Shutterstock.com
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