Silver Smashes All-Time Highs Near $111 As China's 'Zombie Banks' Spark Metal Rush-Is It Generational Trade Or A Bubble?

Silver prices surged past $110 on Monday, hitting fresh all-time highs as a flight from China’s banking sector ignited a global scramble for physical metal.

The ‘Zombie Bank’ Exodus

Silver spot prices touched a record of $110.1250 intraday before stabilizing near $109.69, capping a frantic rally that has seen the metal double in under three months.

According to Rose AI founder Alexander Campbell, the primary engine of this latest leg up is capital flight from China. Campbell describes a “zombie banking system” laden with trillions in hidden losses, forcing Chinese households to choose between technically insolvent bank deposits or physical assets.

“The secret is out that property is not a safe store of wealth,” Campbell wrote in his Jan. 26 update. “You only need a tiny shift in savings behavior to break the silver market”.

This panic buying has created a massive arbitrage gap, says Campbell, as silver in Shanghai is trading at a structural premium compared to the trading on COMEX.

A ‘Doomsday Clock’ For The Dollar

While long-time bulls are celebrating—trader Rashad Hajiyev declared “Welcome his majesty – SILVER” and predicted prices could double again in the next two to three months—institutional sentiment is turning cautious.

Campbell characterizes the rally not as a party, but as a “doomsday clock” for the global order, noting that realized volatility has reached levels not seen since the American Revolution.

Profit Taking Vs. Panic Buying

The speed of the ascent has split the market. While retail investors and Eastern buyers chase the momentum, sophisticated players are hedging.

Campbell revealed that his firm is “reducing delta” and liquidating some bullish option positions to lock in profits.

Despite the caution, the floor remains high. With solar and AI demand creating an inelastic deficit and COMEX inventories on pace to be exhausted by September, the squeeze shows few signs of abating.

“The dynamics that got us here haven't changed,” Campbell noted. “They've accelerated”.

Here’s a list of some silver and silver mining stocks-linked ETFs for investors to consider.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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