Is Silver Too Volatile? Devlyn Steele Reveals the Real Story

Investors often hear that silver is “too volatile” to be a reliable store of value—but according to Augusta Precious Metals’ Devlyn Steele, that long-standing belief is based on outdated misconceptions rather than real market data. 

In a new video, Steele dismantles the myth, explains where the idea came from, and shows why today’s silver market looks nothing like the distortion-driven events of the past. 

For retirement savers considering precious metals, his message is clear: the fundamentals—not the folklore—tell the real story.

Watch the Video: “Is Silver Really Too Volatile?” Devlyn Steele explains the truth behind silver’s price behavior:

Myths vs. Reality: Is Silver Actually Too Volatile?

For decades, one persistent rumor has discouraged Americans from adding silver to their retirement portfolios—the idea that silver is simply “too volatile.”

You’ve likely seen this claim repeated in internet comment sections and social media threads, often with no supporting evidence. But as Devlyn Steele points out, the data tells a very different story.

The belief isn’t rooted in silver’s long-term behavior, nor in volatility studies, nor in industrial supply-and-demand patterns.

Instead, Steele argues, the myth comes from two rare, man-made, speculation-driven price spikes—not from natural market movement.

The First Misleading Event: The Hunt Brothers (1979–1980)

Between mid-1979 and early 1980, three billionaire brothers attempted to corner the global silver market using extreme leverage.

Their artificial buying pressure pushed silver from $10 to $50 in just four months—far beyond what fundamentals justified.

• The gold–silver ratio collapsed from its typical 50–60:1 range to an unprecedented 17:1.
• Industrial demand did not support the surge.
• Prices became detached from economic reality.

When the Federal Reserve stepped in—raising margins and restricting positions—the bubble collapsed. Silver fell back to normal levels. Steele emphasizes: this wasn’t natural volatility; it was leverage unwinding.

Related: How to Diversify Your Savings with Silver and Gold

The Second Misleading Event: The QE Liquidity Spike (2010–2011)

Thirty years later, silver experienced another dramatic run, climbing from the high teens to nearly $50 during the first major wave of quantitative easing.

Again, the fundamentals didn’t justify the move:

• The gold–silver ratio briefly dropped into the low 30s—still far outside its natural range.
• Industrial demand was not exploding.
• Mine supply was not tightening.

The spike was driven by liquidity chasing returns, not by structural shifts in the silver market. And once again, the correction reinforced the myth—despite the fact that the event was artificially created.

Remove Those Two Events… and Silver Looks Very Different

When you look at silver’s actual long-term behavior without those two outliers, the picture changes dramatically.

According to Steele:

• Silver tends to move within normal, steady ranges.
• Its volatility often mirrors that of the stock market.
• It does not behave like a hyper-speculative asset.
• Decades of data simply don’t support the “wildly unpredictable” label.

The myth persists only because these two rare distortions overshadow silver’s real track record.

Today’s Silver Market Is Fundamentally Different

Steele highlights several structural realities that define the modern silver market—and none of them resemble 1980 or 2011.

1. Industrial Demand Now Dominates (≈ 60% of Global Demand)

Silver is no longer driven primarily by speculative investment. It is a core component of long-term global infrastructure, including:

• Solar energy
• Electric vehicles
• Power grid expansion
• 5G technology
• Medical devices
• Data centers

These are not short-term trends—these are multi-decade buildouts requiring vast amounts of silver.

2. Chronic Supply Deficits Are Increasing

The Silver Institute has reported multiple consecutive supply deficits.

• Mine production cannot rise fast enough to meet demand.
• Most silver is produced as a byproduct, meaning mining companies can’t simply decide to increase output.

This creates structural tightness—not speculative spikes.

3. The Gold–Silver Ratio Shows Silver Is Undervalued, Not Overvalued

Today the ratio sits near 80:1, well above its long-term trend of 50–60:1. Historically:

• High ratios = silver undervalued
• Low ratios = speculative tops

By this measure, silver is positioned closer to a long-term opportunity than a risk.

4. Silver Outperforms During Liquidity Cycles

With the Federal Reserve preparing to shift out of quantitative tightening as of December 1, 2025, liquidity is expected to return to the system.

Historically:

• Silver doesn’t just follow gold—it often outperforms gold in early easing cycles.
• This isn’t volatility—it’s leverage on top of strong fundamentals.

Related: Diversify Your Retirement with Silver and Gold

A Decade of Stability: What the Data Shows

Aside from the universal market shock of early 2020, silver’s last ten years tell a consistent story:

• Higher lows
• Higher highs
• No structural breakdowns
• No speculative man-made bubbles
• No disconnect from fundamentals

This is what a mature, industrial-demand-driven market looks like—not a volatile one.

Take a Fresh Look at Silver

The belief that silver is too volatile has stopped countless retirement savers from exploring what may be one of the most compelling opportunities of the decade.

As Devlyn Steele explains, the rumor was never rooted in real data—only in two extraordinary historical events that don’t reflect today’s market.

The fundamentals of 2025 point in the opposite direction: silver may be undervalued, underappreciated, and structurally supported by long-term demand.

Before dismissing silver based on what you’ve heard online, consider reviewing the real facts—and, as Steele suggests, the Augusta Precious Metals team is available to walk through the numbers one-on-one.