Silver has been quite popular recently, especially this year when its gains far outpaced gold. By January 2026, silver briefly broke through the historical high of $94-95 per ounce, and this is no coincidence.

Looking at the current environment—global geopolitical tensions, trade frictions, and numerous uncertainties—institutions and investors naturally seek safe-haven assets. Silver and gold have become the top choices. As risk aversion increases, these two precious metals tend to rise together. The logic is simple: increased uncertainty → heightened risk aversion → increased demand for precious metals.

Now, consider the Federal Reserve. The market is pricing in the possibility of future rate cuts. Once expectations of rate cuts strengthen, the US dollar will come under pressure. Gold and silver, priced in dollars, naturally rise. Falling real interest rates mean the opportunity cost of holding non-yielding assets decreases, making silver and gold more attractive. This also explains why silver prices have recently surged so strongly.

But that’s not all. Silver is not just a financial asset; fundamentally, it is also an industrial metal. On the supply side, cyclical shortages do exist. As for industrial demand, growth in the photovoltaic and new energy industries continues to drive demand. The gold-silver ratio once hit a historic low, which fully demonstrates that silver’s strength is supported by fundamentals—not purely speculative or just safe-haven demand, but a combination of risk aversion, policy expectations, and real economic needs.