Silver prices have reached new heights, now over $90, driven by global tensions and worries about US monetary policy. Currently priced at about $90.50, silver has risen by 4.30%, maintaining its upward trend for four days. Tensions from geopolitical issues, especially in Iran, have increased demand for silver. Public protests over high inflation and the decline of the Iranian Rial have escalated after harsh government crackdowns, leading to hundreds of reported deaths. These global uncertainties are worsened by warnings from the US President of possible military actions if Iranian repression continues. Concerns have also arisen about Jerome Powell and Federal Reserve funds, sparking fears about the independence of US monetary policy. While the central bank is providing support, these issues are putting pressure on the US Dollar, creating a favorable environment for silver. Many expect the Federal Reserve to lower interest rates. If real yields drop, the Dollar could weaken further. Silver remains attractive due to ongoing demand and limited supply, especially from its industrial uses and its connection to gold prices. Silver is seen as a safe investment, much like gold. Their prices often react in similar ways. The Gold/Silver ratio helps investors compare their values and make informed choices in both markets. With silver now above $90, the current momentum is strongly positive. This surge is fueled by fears from geopolitical issues and questions about the Federal Reserve’s independence. Upcoming weeks may present chances to profit from rising prices and increasing market volatility. Buying call options seems like the best way to benefit from this trend. It allows investors to gain significantly if prices continue to rise while limiting risk to the option’s premium. Given the Fed’s uncertainty, implied volatility is high, but the power of this movement suggests more gains could be ahead. This makes even out-of-the-money calls appealing for those willing to take risks. It’s important to realize that this situation isn’t occurring in isolation; the market has been tightening for years. The Silver Institute highlighted a notable supply shortage for the fourth year in a row in its 2025 review, partly due to record industrial demand. Increased interest from solar and electric vehicle industries during 2024 and 2025 is paving the way for this sharp price increase. Historically, the Gold/Silver ratio stayed above 85:1 for most of 2025, indicating that silver was undervalued compared to gold. This breakout now represents a strong chance for traders as the ratio drops sharply below 70:1, allowing those long on silver to see significant profits. However, caution is needed as markets at all-time highs can quickly reverse as traders take profits. To mitigate this risk, investors might explore bull call spreads instead of directly buying calls. This strategy reduces the initial cost by selling a higher-strike call, offering good returns if silver prices keep climbing, while also setting a profit limit.

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