Last Updated on January 26, 2026 by Deon
An extraordinary event is unfolding in the precious metals market — and silver is taking center stage. On Monday, silver (XAG/USD) not only established a new record but also exceeded it significantly. For the first time in history, prices soared past the psychological barrier of $110 per ounce, reaching an intraday peak close to $110.90. Even more remarkable?
Silver has already increased by approximately 50% in January alone, leaving gold trailing far behind. This is not merely a fleeting speculative surge. It stems from a unique blend of global uncertainty and a genuine shortage of physical silver. In summary: the global demand for silver exceeds its production capacity. 1. Investor Anxiety Is Steering Attention Toward Silver Silver is reaping the benefits of the same “safe-haven” appeal that typically elevates gold — but this time, it is advancing at an even quicker pace. Over the weekend, new geopolitical tensions unsettled the markets. President Trump’s warning of possible 100% tariffs on Canadian products and 200% tariffs on French wine rekindled fears of a looming global trade conflict.
Concurrently, apprehensions are mounting regarding the Federal Reserve’s autonomy and the potential for a U.S. government shutdown as the January 30 deadline approaches. All these factors have undermined confidence in conventional currencies. As uncertainty escalates, investors are flocking to tangible assets — and silver has emerged as one of the most appealing choices available. 2. A Declining Dollar Is Fueling the Surge The U.S. Dollar Index (DXY) has fallen to a four-month low around 96.95. This is significant for silver. Given that silver is denominated in dollars, a weaker dollar makes it more affordable for purchasers using other currencies. This has triggered a surge in global demand, driving prices higher and intensifying the rally. 3. This Time It’s Not Solely About Safety — It’s Also About Supply In contrast to gold, silver is not merely a commodity stored in vaults. It is an essential industrial metal — and the world is facing a shortage of it. Currently, global demand is outpacing supply.
