Silver (XAG/USD) traded at $90.96 per troy ounce on Wednesday, up 4.19% from $87.30 on Tuesday. Prices have risen by 27.96% since the start of the year.
By unit, silver was priced at $90.96 per troy ounce and $2.92 per gram. These figures reflect the latest quoted levels in US dollars.
Gold Silver Ratio Update
The Gold/Silver ratio was 57.06 on Wednesday, down from 59.16 on Tuesday. The ratio measures how many ounces of silver equal the value of one ounce of gold.
Silver prices can be influenced by interest rates, US dollar movements, and demand for physical metal or price-tracking products such as exchange traded funds. Supply from mining, silver’s greater abundance than gold, and recycling rates can also affect prices.
Industrial use in electronics and solar energy can shift demand and prices, with economic conditions in the US, China, and India also playing a role. Silver often moves in line with gold, and changes in the Gold/Silver ratio can be used to compare relative pricing between the two metals.
With silver now trading above $90, implied volatility in the options market has surged, making outright long futures positions increasingly expensive to hold. We are seeing traders pivot towards strategies like call spreads to capitalize on further upside momentum while defining their risk. This approach seems prudent given the metal is up nearly 28% since the start of the year.
Market Strategy Considerations
The Gold/Silver ratio falling below 60 to 57.06 is a significant development, confirming silver’s recent strength relative to gold. This is a stark contrast to the market dynamics we saw through much of 2025, when the ratio consistently hovered above 80, signaling silver was undervalued. Traders should watch this ratio closely, as a continued fall would suggest silver remains the preferred precious metal for the time being.
The rally appears strongly supported by industrial demand, which is a change from the investment-led buying we saw in 2025. Reports from the International Energy Agency in January 2026 confirmed that global solar panel installations in 2025 outpaced forecasts, consuming an estimated 160 million ounces of silver. This robust and ongoing demand provides a solid floor for prices that was absent during previous speculative peaks, such as the one in 2011.
Monetary policy is also providing a significant tailwind, following the Federal Reserve’s dovish pivot in its final meetings of 2025. The subsequent weakening of the U.S. dollar has made silver cheaper for holders of other currencies, fueling the recent price acceleration. As long as we see expectations for lower interest rates holding, the path of least resistance for silver remains upward.
Recent manufacturing PMI data from China, released in early February 2026, showed a surprising rebound, further bolstering the industrial use case for silver in electronics. While geopolitical risks were the main focus for us in early 2025, the narrative has clearly shifted to a global recovery story. This fundamental strength suggests that dips in price are likely to be viewed as buying opportunities.
Given the sharp run-up, traders should consider hedging their positions. Selling out-of-the-money cash-secured puts could be a viable strategy to generate income and potentially acquire silver at a lower cost basis if a correction occurs. The elevated volatility means option premiums are rich, making it an attractive environment for sellers who believe the $85-$90 range will now act as a strong support level.
