By: Economy Middle east

Spot silver prices shattered records on Wednesday, breaking through the $91 per ounce barrier for the first time ever amid a confluence of macroeconomic and geopolitical pressures. This marked a more than 3 percent intraday gain, pushing the metal to new heights following a year of explosive growth. Traders reacted swiftly to fresh U.S. inflation data and persistent global tensions, amplifying silver’s appeal as both an industrial commodity and safe-haven asset. Silver is currently trading 5.01 percent higher at $90.72.

Silver spot prices climbed above $90 per ounce by early GMT trading on Wednesday, surpassing the previous day’s close around $88. This breakthrough followed a sharp rebound from recent volatility, with the metal up over 1.67 percent on the session to reach $89.63 before the pivotal push higher. Year-to-date in 2026, silver has surged more than 12-14 percent, outpacing even gold’s gains amid tightening gold-silver ratios near historic lows of 52.3. From $81.3 on January 6 to nearly $90 by mid-January, the trajectory reflects unrelenting momentum, with intraday highs testing $90.05. On January 13, prices hovered at $88.39-$88.49, setting the stage for the record break. This positions silver nearly 200 percent higher than January 2025 levels, underscoring its transformative bull run.

Silver prices

Soft U.S. inflation data released recently bolstered expectations for Federal Reserve rate cuts, driving investors toward precious metals as non-yielding hedges. Inflation held sticky at 2.7 percent, above the Fed’s 2 percent target, yet dovish signals amplified rate-cut bets amid fiscal concerns. Geopolitical tensions, including issues with Venezuela and broader crises, fueled safe-haven buying, propelling silver’s outperformance over gold.

Robust industrial demand and tightening inventories added structural support, with solar panels, EVs, and tech sectors consuming record volumes. Investment inflows into silver ETFs surged, while China’s new export restrictions on refined silver from January 1 exacerbated supply strains. The market faces ongoing deficits, with 2025 demand at 1.24 billion ounces against 1.01 billion in supply—a 230 million ounce shortfall.

Silver

Silver’s rally builds on 2025’s 120-143 percent gains, marking the fifth straight year of supply shortages as mine output plateaus since 2016. Global demand hit 1.17 billion ounces in 2024, outstripping supply by 500 million ounces in some estimates, with recycling unable to bridge the gap. The International Energy Agency projects solar capacity quadrupling by 2030, potentially consuming half of annual silver output alongside EVs and data centers.

Gold-silver ratio compression to 52.3 signals silver’s relative strength, driven by industrial tailwinds absent in gold. Analysts note unprecedented futures selling tied to index rebalancing earlier in January, yet physical tightness persists. Fitch’s BMI forecasts deficits through 2026, primarily from investment demand. Analysts project silver pushing toward $100 or beyond in 2026, with HSBC’s upside case already breached and forecasts averaging $57-$88 conservative in hindsight.