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Silver prices leapt to $90.95 per ounce, a 4.33% gain in a single day, as investors piled into the metal amid easing tariff concerns and ongoing supply shortages. The rally highlights silver’s enduring appeal as both a safe-haven asset and a vital industrial material.
From Collapse to Comeback
Just weeks ago, silver was reeling from a sharp January crash, tumbling from highs above $120 to lows near $64. Since then, the market has staged a remarkable recovery, steadily building momentum and now reclaiming levels above $90. Tuesday’s breakout marks a turning point, signaling renewed confidence among traders.
Tariffs Spark Safe-Haven Buying
Fresh global tariff announcements reignited investor demand for precious metals. Silver, with its dual role as a hedge against uncertainty and a key industrial input, has been especially attractive. Inventories remain at historic lows, while demand from solar energy, AI infrastructure, and electric vehicles continues to surge.
Supply Deficit Deepens
The global silver market is heading into its sixth consecutive year of supply shortfall. Estimates suggest demand could exceed supply by up to 200 million ounces in 2026, with mine output stagnant at around 820 million ounces annually. This imbalance is a major driver behind silver’s rally.
Policy Shifts on the Horizon
The Federal Reserve has kept interest rates steady between 3.50% and 3.75%, but leadership changes later this year may usher in a more dovish stance. A softer Fed could provide further support for non-yielding assets like silver, adding fuel to the rally.
Volatility Remains Part of the Story
Silver’s trading range between $86.56 and $91.25 during the day underscores its volatility. Yet, the resilience of demand and the structural supply deficit suggest that prices may continue to climb, with the $95–$100 zone now in sight if momentum holds.
More Than Just a Metal
Silver has been valued for centuries, once backing currencies and now powering modern technologies. Its unique position at the crossroads of financial security and industrial innovation ensures that it remains one of the most closely watched commodities in global markets.
Looking Ahead
With prices firmly above $90, the big question is whether silver can sustain its momentum toward triple digits. Much will depend on trade policies, inflation trends, and industrial demand. For now, silver’s rally is a vivid reminder of its enduring importance in both history and the future of innovation.
