Silver Breaks $90: The Precious Metal Rally That's Outpacing Even Gold

Silver smashed through $90 per ounce on Wednesday, January 14, 2026, marking yet another historic milestone in what has become the precious metal's most explosive rally on record. The white metal touched $90.39 early in the trading session, up more than 4% from the previous day and an astonishing 195% higher than this time last year.

A Year of Extraordinary Gains

To appreciate the magnitude of silver's move, consider where the metal stood just one year ago. On January 1, 2025, silver traded at approximately $28.92 per ounce—a price that seemed reasonable at the time but now appears almost quaint. The subsequent twelve months have delivered the most powerful precious metals rally since the 1970s.

While gold's surge to $4,600 per ounce has captured headlines, silver has quietly outperformed its more famous cousin. Gold gained roughly 64% in 2025—its best year since 1979—but silver's 147% annual gain dwarfed that performance, marking the white metal's strongest year on record.

"Silver is playing catch-up to gold, and then some," said Nicky Shiels, head of metals strategy at MKS PAMP. "The gold-silver ratio had become stretched to extremes that historically don't persist. We're seeing a violent normalization."

The Perfect Storm Driving Silver Higher

Several factors have converged to propel silver to unprecedented heights:

Safe-Haven Demand: The same forces driving gold higher—concerns about Federal Reserve independence, geopolitical tensions with Iran, and elevated fiscal deficits—have spilled over into the silver market. When investors seek precious metals as a hedge against uncertainty, silver typically follows gold higher, often with greater volatility.

Industrial Demand: Unlike gold, which is primarily a monetary metal, silver has substantial industrial applications. The clean energy transition has created surging demand for silver in solar panels, electric vehicles, and other green technologies. Solar panel production alone consumes more than 100 million ounces of silver annually.

Supply Constraints: Global silver production has failed to keep pace with demand. A multi-year cumulative deficit of nearly 820 million ounces from 2021 to 2025 has left the market structurally tight. Unlike gold, where central banks hold massive reserves, there are no strategic silver stockpiles to fill supply gaps.

The Dollar Effect: The U.S. dollar has weakened significantly in recent weeks, partly due to concerns about Fed independence following the DOJ's investigation of Chairman Jerome Powell. A weaker dollar makes dollar-denominated commodities like silver more attractive to international buyers.

The $100 Question

With silver having already gained more than $60 per ounce in just over a year, the obvious question is whether the metal can reach the psychologically significant $100 level. Some analysts believe that milestone is not only possible but likely.

"The technical picture for silver is extremely bullish," said Peter Schiff, chief economist at Euro Pacific Capital and a longtime precious metals advocate. "We've broken through every resistance level on the way up. There's really nothing standing between current prices and $100."

Robert Kiyosaki, author of "Rich Dad Poor Dad," has been even more aggressive in his forecasts, predicting silver could eventually reach $200 per ounce. While such targets may seem extreme, they're worth noting given Kiyosaki's accurate calls on precious metals in recent years.

However, not everyone is convinced the rally has room to run. Skeptics point to silver's notorious volatility and the potential for a sharp correction if any of the supporting factors reverse.

"Silver is the most volatile major commodity for a reason," cautioned Bart Melek, head of commodity strategy at TD Securities. "It can fall just as quickly as it rises. Investors need to be prepared for significant pullbacks along the way."

How Silver's Rally Compares to Gold

The gold-silver ratio—which measures how many ounces of silver it takes to buy one ounce of gold—provides important context for the current rally. Historically, this ratio has averaged around 60:1, meaning gold typically trades at 60 times the price of silver.

At the start of 2025, the ratio had stretched to approximately 90:1, suggesting silver was historically undervalued relative to gold. The subsequent rally has compressed the ratio to around 51:1, slightly below its historical average.

This compression has been driven almost entirely by silver's outperformance. While gold has risen impressively from $2,800 to $4,600, silver has nearly tripled from under $30 to over $90.

"The ratio normalization isn't complete," argued John Hathaway, senior portfolio manager at Sprott Asset Management. "If anything, silver could continue to outperform until the ratio drops into the 40s or even lower."

Investment Options for Silver Exposure

Investors looking to participate in silver's rally have several options:

• Physical Silver: Coins and bars offer direct exposure but come with storage and insurance costs. Premiums above spot price have also increased as demand has surged.
• Silver ETFs: The iShares Silver Trust (SLV) and similar products offer liquid exposure without the hassle of physical storage. These funds have seen record inflows in recent months.
• Mining Stocks: Companies like Wheaton Precious Metals, Pan American Silver, and First Majestic Silver offer leveraged exposure to silver prices. Mining stocks have surged alongside the metal itself.
• Silver Futures: Sophisticated investors can trade silver futures on the COMEX, though these instruments require margin accounts and carry significant risk.

Risks to Consider

Despite the bullish momentum, investors should be aware of several risks:

Volatility: Silver's standard deviation of returns is roughly twice that of gold, meaning the metal can experience dramatic swings in both directions.

Industrial Demand Sensitivity: If the global economy weakens, industrial demand for silver could decline, removing one pillar of support for prices.

Fed Policy: A hawkish pivot by the Federal Reserve—whether under Chair Powell or his successor—could strengthen the dollar and pressure precious metals.

Profit-Taking: After gains of this magnitude, significant profit-taking is always possible. Long-term investors would be wise to maintain appropriate position sizing.

What Comes Next

The next major catalyst for silver will likely come from the Federal Reserve's January 27-28 meeting. If the Fed signals openness to rate cuts later this year, precious metals could extend their gains. Conversely, any hawkish surprises could trigger profit-taking.

For now, silver's historic run shows no signs of slowing. The $100 barrier, once thought to be an impossibility, now appears within reach. Whether the metal achieves that milestone—and what happens after—will be one of the defining financial stories of 2026.

As one veteran precious metals trader put it: "I've been in this business for 40 years, and I've never seen anything quite like this. Silver is finally having its moment."