Silver traded around $101 per ounce as of writing, rising more than 5% in the past 24 hours and marking its first sustained move above the $100 level. The rally capped a sharp advance that began in 2025 and carried into the new year, supported by retail participation, momentum-driven flows, and persistent tightness in physical markets.
Market participants quickly turned their attention to what comes next. Does this level signal overheating, or does it mark a reset in silver’s long-term valuation?
Several international developments have helped push precious metals higher in recent weeks. Analysts pointed to heightened geopolitical uncertainty as a major driver of renewed safe-haven demand.
Events ranged from protests in Iran and China’s new export restrictions on silver to rising diplomatic tension surrounding former U.S. President Donald Trump’s push to annex Greenland.
Trump’s remarks sparked concern among European leaders, who voiced support for Greenland while facing the prospect of new tariffs. However, Trump later ruled out military action during a speech at the World Economic Forum in Davos and dropped the tariff threat in a subsequent social media post. Gold prices continued to climb during the episode, nearing the $5,000 level, and silver followed closely due to its lower unit price and stronger speculative appeal.
Physical Tightness Meets Industrial Demand
Silver’s rally has not relied on investor sentiment alone. The metal faces a prolonged supply deficit that has lasted six consecutive years, according to analysts tracking physical balances. At the same time, industrial demand has expanded across several sectors.
Silver plays a key role in solar panels, electronics, electric vehicles, and emerging AI-related infrastructure. These uses have strengthened baseline demand even as mine supply struggles to respond quickly.
Spot silver prices last rose about 6.1% to roughly $101 per troy ounce, reflecting both industrial usage and investment flows. Analysts noted that this dual role continues to differentiate silver from other precious metals during periods of market stress.
Bubble Signals Trigger Caution Among Analysts
Despite the strong fundamentals, some market watchers have raised red flags. Technical analysts who study historical price patterns described the recent move as parabolic, a structure that often precedes sharp corrections.
StoneX analyst Rhona O’Connell said silver has entered a self-propelled frenzy, supported by geopolitical risk and gold’s strength. However, she warned that cracks could widen quickly once momentum fades.
Models such as Société Générale’s LPPLS framework have labeled the current setup as bubble-like. Past silver cycles have shown similar behavior, with roughly 500% gains over seven months followed by full retracements. Will history repeat itself?
Source: Jeremy Via X
Structural Shift or Familiar Cycle?
Others urged caution against drawing straight lines from past charts. Market historians pointed out that the 1980 collapse followed forced concentration unwinds, while the 2011 decline stemmed from reversible financial demand.
Current conditions show neither a dynamic in isolation. Analysts argued that markets do not always correct through price alone. Sometimes they cool through time or partial retracements instead.
As prices explore uncharted territory, the structure behind today’s rally has kept the debate alive. Volatility remains high, yet volatility alone does not define fragility.
Forecasts Stretch From $120 to $275
Forecasts for silver now vary widely. Some analysts see an extension into the $114 to $120 range before a sharp pullback below $100. Longer-term projections climb much higher.
Economist Karim Patrick has said a confirmed yearly breakout opens a long-term target near $275, though he noted that prices already look stretched and safer entries may emerge on smaller time frames.
Prominent investors such as Robert Kiyosaki have echoed bullish views, with targets of $200. CoinCodex projected a move from about $100.60 to $130.12 by February 23, 2026, implying a potential 29% gain. For now, silver’s breakout has reset expectations and intensified scrutiny as markets watch the next move.