Bitcoin Outgained By Silver-Backed Crypto In 2025, Even Forever Bitcoin Bull Max Keiser Sees An Upside For The Shiny Metal
News Summary
On September 12, 2025, silver surged to a 14-year high of $42.07 per ounce, propelling cryptocurrencies linked to the precious metal. For instance, Kinesis Silver's year-to-date gains surpassed 33%, outperforming Bitcoin's 23.81% but slightly trailing Ethereum's 36.79%. Notably, each Kinesis Silver token is backed by one ounce of investment-grade silver bullion, securely stored in Kinesis' insured vaults. Max Keiser, a well-known Bitcoin bull, asserted that silver is “certain” to hit $150 once it crosses $50. Economist Peter Schiff also weighed in on the silver rally, stating that “precious metals are getting ready to melt up,” attributing it to the Federal Reserve's mistaken upcoming rate cut given persistent high inflation.
Background
Silver, serving as both an industrial and precious metal, has historically been regarded as an inflation hedge and a store of value. Its price fluctuations are influenced by industrial demand, investment demand, and the strength of the U.S. dollar, among other factors. Currently, the global economy faces inflationary pressures. Despite the Federal Reserve potentially considering rate cuts in response to weak job numbers, inflation data remains hotter than expected, leading to divergence in market expectations for the Fed's monetary policy path. Against this macro backdrop, precious metals, including silver, and their linked digital assets are demonstrating appeal as inflation hedges.
In-Depth AI Insights
What are the underlying drivers of silver and silver-backed crypto's recent strong performance, and what are the deeper implications for asset allocation? - Silver's rally is not an isolated event but reflects profound market anxiety over persistent inflation and uncertainty regarding the Federal Reserve's policy trajectory. While the Fed may lean towards rate cuts to stimulate employment, if inflation remains unchecked, real interest rates could further turn negative, prompting investors to seek tangible assets. - The outperformance of silver-backed cryptocurrencies like Kinesis Silver over Bitcoin and Ethereum indicates investors are seeking an