In the wake of a noteworthy uptrend in precious metals, Jim Cramer, host of CNBC’s "Mad Money," reaffirmed his established preference for gold over silver, while voicing considerable skepticism regarding silver’s price gains. Highlighting his stance via a social media post on Monday, Cramer characterized himself as a "huge gold bug," distinguishing his loyalty from what he describes as the currently excessive enthusiasm surrounding silver.
Cramer notably indicated that he would consider liquidating his family's silver holdings due to the unexpectedly high prices, if it were not for their sentimental importance. He described the ongoing rally in silver as "getting ridiculous," commenting on the metal's recent peak price of $117.69 per ounce earlier that day. This marked a historical high before the spot prices saw a sharp pullback, reflecting silver’s increasingly volatile trading behavior.
The dramatic price movements have been fueled by a convergence of factors including dwindling supply levels coupled with increasing industrial demand. Silver's price has surged by approximately 145% in 2025 and has advanced 57% over the previous month alone. Meanwhile, gold prices have also experienced robust gains, with an overall increase of 64% this year and a 17.13% rise since the start of the year, largely propelled by monetary influences and investment demand.
However, silver’s price dynamics recently captured attention due to an extraordinary intraday reversal. On Monday, following its sharp ascent, silver prices collapsed steeply within a 90-minute timeframe, losing all the gains amassed during that day - an approximate 14% downturn. This selloff erased about $900 billion in market capitalization, highlighting a rare level of price instability for an asset typically seen as a safe-haven investment.
Market analyst Mike Alfred offered insight into this precipitous decline, attributing it to what is known as a "no bid" scenario. In this context, there is a lack of buyer interest at the price levels offered. Alfred explained that dealers are currently burdened with excessive inventory, making them reluctant to acquire further silver holdings. He suggested that prices will likely have to drop further to "unclog the market," cautioning that this adjustment could be considerably disruptive.
In terms of market instruments tracking silver, the iShares Silver Trust (NYSE: SLV), which mirrors the price of silver, closed Monday up 5.84% at $98.34 and subsequently advanced another 2.25% overnight. As of the latest trading, silver prices are operating around $110.68 per ounce.
Overall, while silver has demonstrated substantial short-term gains, its swift reversals and the commentary from prominent market figures like Jim Cramer underscore the heightened risks and the need for careful consideration before engaging in silver investments. Cramer's preference for gold remains intact, given its comparatively stable trajectory in the current market landscape.