Silver has soared to around $109.50, rising 6.90% in a single day. It recently hit a record of $110.90, driven by global uncertainty that makes safe-haven assets more appealing. Political risks in the US, trade tensions, and concerns about the Federal Reserve have increased interest in precious metals like silver as a safe investment. Additionally, weakness in the US Dollar—due to interest rate expectations and political uncertainty—enhances Silver’s attractiveness. Silver is not just a safe-haven asset; it also has strong industrial demand, especially in sectors focused on energy transition, such as solar power and electrification. Limited mine supply adds pressure to the market as well. US monetary policy plays a critical role. Lower real interest rates make non-yielding assets like Silver more appealing. The current economic situation, including a weak US Dollar, supports ongoing demand for Silver as both a safe-haven and essential metal. Investors looking for diversification and protection against inflation are drawn to Silver. Prices are affected by geopolitical instability, interest rates, and the strength of the US Dollar. Industrial needs, particularly in electronics and solar energy, also impact prices. Silver often follows Gold’s trends due to their shared status as safe-havens. The Gold/Silver ratio is useful for evaluating their relative value and influences investment choices. We’re seeing a remarkable surge in silver, which has just surpassed $110 an ounce for the first time. This strong upward momentum is driven by safe-haven demand rooted in US political uncertainty and a persistently weak dollar. Derivative strategies should focus on capturing further gains in the coming weeks. This situation resembles the market tensions during the budget standoff in late 2025, but the current momentum is significantly stronger. The Silver Institute now forecasts a fifth straight year of a structural supply deficit for 2026, providing a solid foundation for this price surge. The combination of investor fear and industrial demand is a unique and potent force for silver. Due to the high volatility associated with this record move, outright call options can be costly. A better approach may be to use bull call spreads to lower initial expenses. This allows us to profit from a steady rise while managing risk. This strategy is wiser than chasing the rally with highly leveraged futures at these peak levels. It’s important to highlight the significant drop in the gold/silver ratio, which has decreased from over 85:1 in mid-2025 to nearly 60:1 today. Historical trends indicate that silver is quickly closing its valuation gap with gold, which could lead to further advantages. As long as this ratio continues to decrease, silver is likely to outperform gold on a percentage basis.

here to set up a live account on VT Markets now