Silver (XAG/USD) traded at $90.96 per troy ounce on Wednesday. That is up 4.19% from $87.30 on Tuesday. Prices are up 27.96% since the start of the year.
By unit, silver was priced at $90.96 per troy ounce and $2.92 per gram. These figures reflect the latest quoted levels in US dollars.
Gold Silver Ratio Update
The Gold/Silver ratio was 57.06 on Wednesday, down from 59.16 on Tuesday. This ratio shows how many ounces of silver equal the value of one ounce of gold.
Silver prices can move for several reasons. Key drivers include interest rates, the US dollar, and demand for physical silver or price-tracking products like exchange traded funds. Supply factors also matter, including mine output, silver’s higher abundance than gold, and recycling.
Industrial demand can also change prices. Silver is widely used in electronics and solar energy. Economic conditions in the US, China, and India can also affect demand. Silver often tracks gold, and the Gold/Silver ratio helps compare how the two metals are priced versus each other.
With silver now above $90, implied volatility in the options market has jumped. This makes simple long futures positions more costly to hold. As a result, more traders are shifting to strategies like call spreads. These can capture more upside while limiting risk. This approach looks sensible, since silver is up nearly 28% year to date.
Market Strategy Considerations
The move in the Gold/Silver ratio below 60, to 57.06, is an important signal. It confirms that silver has been stronger than gold recently. This differs from much of 2025, when the ratio stayed above 80 and suggested silver was undervalued. Traders should keep watching this ratio. If it keeps falling, it would point to silver staying in favor for now.
This rally also seems to have stronger support from industrial demand. That is different from 2025, when investment buying was the key driver. In January 2026, the International Energy Agency reported that global solar panel installations in 2025 beat forecasts. These installations consumed an estimated 160 million ounces of silver. This type of steady demand can help support prices in a way that was not present during earlier speculative peaks, such as 2011.
Monetary policy is also helping. The Federal Reserve turned more dovish in its final meetings of 2025. After that, the US dollar weakened. A weaker dollar makes silver cheaper for buyers using other currencies, which can boost demand and prices. If markets keep expecting lower rates, silver may continue to have upward momentum.
China’s manufacturing PMI data, released in early February 2026, showed an unexpected rebound. This supports the industrial case for silver, especially in electronics. While geopolitical risk dominated the story in early 2025, the focus has shifted toward global recovery. If this remains the main theme, pullbacks may attract buyers.
After such a fast rise, traders may want to hedge. One possible approach is selling out-of-the-money cash-secured puts. This can generate income and may allow traders to buy silver at a lower effective price if the market drops. With volatility high, option premiums are elevated. That can make selling options attractive for traders who think the $85–$90 area may now act as strong support.
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