This creates a complex dynamic for silver markets. While tariffs may initially appear supportive for domestic mining, the economic reality is more nuanced. Tariffs function as a tax on domestic consumers and importers, not a direct profit enhancement for mining companies, so it’s not an encouragement to increase production.

When copper becomes 50% more expensive for U.S. industrial users, demand typically contracts across copper-intensive sectors including construction, electronics, and automotive manufacturing.

This actually means lower demand for copper, ultimately leading to lower copper production.

This implies also lower silver supply coming from copper mining. Naturally, this is a long-term bullish factor for silver.

Is the market discounting this factor right now, and silver is rallying based on that? Will silver’s purchasing power increase further?

This could be the case, but I doubt that. The timing is suspiciously aligned with 2008 top – just as is platinum’s June surge and copper’s spike-high top.