Silver's 170% Rally Sparks Hyperinflation Warnings as Bitcoin Lags Behind

Silver Outpaces Crypto in Volatile Year

Precious metals markets have displayed unprecedented volatility in recent months, with silver experiencing dramatic price swings that mirror the turbulence typically associated with cryptocurrency markets. The silver price reached nearly $80 per ounce on Friday, representing a remarkable 170% return since the beginning of the year ^[2].

This surge contrasts sharply with Bitcoin's recent performance, which has been flat in December, down 0.5% over the past 30 days to trade at $90,160 ^[1]. Despite reaching an all-time high of $120,000 in early October, Bitcoin now requires a 6.5% increase to close out the year in positive territory ^[1].

Kiyosaki Warns of Hyperinflation Signal

Bestselling author Robert Kiyosaki, known for his financial advice book "Rich Dad Poor Dad," has issued stark warnings about the implications of silver's rally. "It gibt viele Gründe, warum ich sage, dass 200 US-Dollar für Silber möglich sind" (There are many reasons why I say $200 for silver is possible), Kiyosaki stated regarding 2026 ^[2].

However, he highlighted a concerning aspect of this development: "Ich befürchte, dass ein Silberpreis von [über] 70 US-Dollar eine Hyperinflation in fünf Jahren signalisieren könnte, da der falsche US-Dollar weiter an Wert verliert" (I fear that a silver price of [over] $70 could signal hyperinflation in five years, as the fake US dollar continues to lose value) ^[2].

Kiyosaki, who reportedly began purchasing silver in 1965 at age 18 when it cost less than $1 per ounce, states he would continue buying even at current prices ^[2]. He has sold 41 million copies of "Rich Dad Poor Dad" since its initial publication ^[2].

Federal Reserve Policy and Market Dynamics

The precious metals rally is partly driven by expectations surrounding future Federal Reserve policy. With a new Fed chair set to take over from Jerome Powell in 2026, market participants anticipate major interest rate cuts under a less hawkish, more President Trump-aligned chair ^[1].

Lower interest rates typically indicate reduced returns from bond investments, making commodities like gold and silver more attractive to investors ^[1]. Additionally, silver demand is bolstered by its industrial applications in manufacturing a wide range of products ^[1].

Kiyosaki interpreted the Federal Reserve's recent interest rate cut as signaling quantitative easing or "das Anwerfen der Gelddruckmaschine" (turning on the money printing machine) ^[2]. He warned that resulting hyperinflation would "das Leben für die Unvorbereiteten sehr teuer machen" (make life very expensive for the unprepared) ^[2].

Investment Recommendations Amid Economic Concerns

The volatility in precious metals is part of what analysts call the "debasement trade," which reflects declining long-term confidence in the US dollar due to monetary inflation ^[1].

Kiyosaki's investment advice remains consistent despite market fluctuations: "Mein Ratschlag bleibt derselbe: Kaufen Sie mehr echtes Gold, Silber, Bitcoin und Ethereum" (My advice remains the same: Buy more real gold, silver, Bitcoin and Ethereum) ^[2].

He has set ambitious price targets, projecting gold at $27,000 and Bitcoin at $250,000 ^[2]. Critics have labeled him a "Crahpropheten" (crash prophet) due to his frequently dire economic predictions ^[2].

While silver and gold are generally considered more stable than cryptocurrencies, silver has proven to be the more volatile of the two precious metals ^[1], with recent price movements demonstrating this characteristic through a wild 6% spike followed by a 10% plunge ^[1].