Silver jumped more than 3% to $86.61 per ounce on February 23, while gold topped $5,062 for the first time in weeks. Precious metals are surging as a safe haven amid a perfect storm: new 15% tariffs, persistent inflation, and a slowing economy.
What is happening with silver
Silver has gained +148% over the past year, rising from $29 in early 2025 to an all-time high of $121.67 on January 29, 2026. Although it corrected from that peak, the rally reignited this week due to three simultaneous factors:
- Trump's 15% tariffs: effective tomorrow February 24, weakening the dollar and pushing capital into metals
- PCE inflation at 2.9%: prices remain above the Fed's target, making real assets attractive
- Geopolitical tensions: stalled Middle East negotiations increase the risk premium
Why silver is outperforming gold
Silver has an advantage gold does not: it is an industrial metal. Over 50% of silver demand comes from industry, especially:
- Solar panels: the energy transition consumes record amounts of silver
- Data centers and AI: servers and electronic components require silver
- Automotive sector: electric vehicles use more silver than conventional ones
According to the Silver Institute, the silver market has been in deficit for 6 consecutive years (demand exceeds supply), which structurally supports higher prices.
Key rally numbers
- Silver today: $86.61/oz (+3% on the day)
- All-time high: $121.67 (January 29, 2026)
- Gold today: $5,062/oz
- 12-month gain: +148%
- Gold/silver ratio: ~58 (historically low, favors silver)
How this affects you as a saver
If you have savings in cash or accounts yielding less than inflation (2.9%), your money is losing purchasing power. Precious metals have historically been the best hedge against stagflation, which is exactly the scenario the U.S. faces today.
What you can do
- Diversify: consider allocating 5-15% of your portfolio to precious metals
- Silver ETFs: SLV (iShares Silver Trust) or SIVR (Aberdeen) provide exposure without buying physical metal
- Don't chase the rally: silver is volatile. If you enter, do so with a long-term view
- Physical silver: coins and bars as a store of value, but with storage costs
