Silver prices have climbed above $100\/oz for the first time, following a notable rally. Last year, prices rose by almost 150% and have continued to rise by 40% this year, surpassing the performance of gold. <\/p>\n
A weaker US dollar, reduced real yields, and an increased interest in hard assets have contributed to silver’s upward trend. In addition, silver has experienced a historic short squeeze and robust retail buying. <\/p>\n
Rising industrial demand, particularly from sectors such as solar energy, electrification, and grid infrastructure, has tightened the silver market. This occurs as the growth in mine supply remains limited.<\/p>\n
Overall, while there are certain risks, the outlook is still promising. Ongoing strong industrial demand, tight physical balances, and considerable market interest are sustaining the market’s strength.<\/p>\n
With silver’s momentum carrying over from its historic 2025 performance, we believe the trend remains a primary consideration for the immediate future. The 40% gain so far in January 2026 suggests that short-term momentum strategies, such as buying near-term call options, could continue to yield results. However, the risk of a sharp reversal is now extremely elevated.<\/p>\n
The parabolic nature of this rally has driven implied volatility to multi-year highs, with the Cboe Silver ETF Volatility Index (VXSLV) likely pushing past 60. This makes purchasing options outright exceptionally expensive and vulnerable to a volatility crush should the price stabilize. Consequently, we are seeing traders favor defined-risk strategies like bull call spreads to reduce premium costs while maintaining upside exposure.<\/p>\n
Fundamentally, the market’s tightness is supported by strong data points from the end of last year. Global solar panel installations in 2025 grew by an estimated 35%, consuming a record of over 200 million ounces of silver and placing a real strain on physical supply. This robust industrial demand provides a stronger floor for prices than we saw during purely speculative rallies of the past.<\/p>\n
Looking at the futures market, we see that managed money net-long positions on the COMEX are now at their highest levels since the 2011 peak. We must remember the sharp reversal that followed that peak, which serves as a crucial reminder of how quickly sentiment can shift in precious metals. For those holding significant long positions, buying protective puts or establishing collar strategies is a prudent measure to lock in some of the recent gains.<\/p>\n
The mention of a short squeeze and strong retail buying indicates that a significant portion of this rally is speculative froth. Any sign that this speculative interest is waning could trigger a rapid wave of selling. Therefore, we will be closely monitoring open interest figures and exchange inventory levels for early warnings of a sentiment shift.<\/p>\n","protected":false},"excerpt":{"rendered":"
Silver surpasses $100\/oz amid soaring demand, tight supply, short squeeze, and outperforming gold this year.<\/p>\n","protected":false},"author":62,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-40113","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/40113","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=40113"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/40113\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=40113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=40113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=40113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}