Global spot silver prices exceeded the 100 USD mark for the first time during the 23/1 trading session. By close, the price reached 103 USD an ounce, a 12% increase in one week. In the preceding week, the precious metal also saw double-digit growth.
Compared to the beginning of the year, silver has accumulated 45% of its market value, boosting its total market capitalization to over 5,800 billion USD and making it the second largest global asset. This surge has allowed it to surpass many tech giants like Nvidia, Alphabet (Google), Apple, Microsoft, Amazon, and digital currency Bitcoin.
While some investors find silver's current rally intense and overly exuberant, Kitco cited several analysts who believe this price level is justified given the severe geopolitical and economic instability facing the world. According to experts, the upward momentum for both gold and silver, though significantly extended, is supported by strong fundamental factors.
Chris Vecchio, Head of Futures and Forex Strategy at Tastylive, stated that demand for assets not tied to the fiat currency system is high. He explained that central banks will not actively buy silver, as the metal is closely linked to industrial processes. However, for institutions and individual investors, silver is the "cheaper yet attractive sibling" among precious metals.
"The USD is no longer the foundation of trust it once was, so investors are seeking alternative real assets," Vecchio emphasized.
Paul Williams, Managing Director at Solomon Global, believes silver's price surge continues to be driven by sustainable industrial demand, increasing retail investor interest (along with FOMO sentiment), its safe-haven role, and a growing structural supply deficit.
"As gold has become too expensive for many, silver emerges as an easier entry point to participate in the precious metals rally," Williams noted.
Looking ahead, Williams sees 120 USD an ounce in 2026 as a viable target, as the factors driving the price increase are likely to persist. Silver's safe-haven appeal shows no signs of waning as geopolitical tensions continue to escalate.
Additionally, the supply deficit is unlikely to improve significantly. Furthermore, even with increased supply, green technologies such as solar energy, electric vehicles, and AI continue to boost demand for this metal.
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Silver bars stacked in the vault of ProAurum in Munich, Germany. Photo: Reuters.
While silver still has room for price appreciation, analysts also warn that this rally comes with considerable risks. Williams noted that given silver's high volatility, prices could fluctuate by 10% in a single day. "The higher the price, the greater the volatility. Profit-taking could also overshadow silver's appeal," he said.
Vecchio, on the other hand, has largely taken profits to avoid upcoming volatility. This expert bought and held silver since November 2025.
Michele Schneider, Chief Market Strategist at MarketGauge, revealed she had taken profits on half of her position, even though she believes silver could reach 150 USD an ounce. Conversely, she is monitoring the support area around 85 USD.
Vecchio noted that due to its high volatility, accurately forecasting silver's downside is difficult. However, he is observing the one-week moving average (MA) around 95 USD an ounce. "As long as silver holds the 85 USD mark by the end of January, the uptrend remains quite stable," he predicted.
Tieu Gu
