NEW YORK, January 21, 2026 – Silver prices are surging, climbing more than 30% since the start of the year and boasting gains exceeding 200% over the last 12 months. Is this a flash in the pan, or a signal of deeper economic anxieties at play? Let’s break down what’s driving the precious metal’s meteoric rise.
Geopolitical Tensions and Supply Concerns Fuel Silver’s Rally
The price of silver is nearing $100 per ounce, potentially hitting that mark this week.
- Silver is benefiting from both industrial demand and its traditional role as a safe-haven asset.
- Political risks, including disputes over Greenland and potential U.S.-EU trade conflicts, are boosting investor interest.
- Legal challenges to tariffs and the future of a Federal Reserve official are adding to market uncertainty.
A confluence of factors is pushing silver higher. Long-standing supply shortages, coupled with increasing demand from the renewable energy and electric vehicle sectors, are creating a fundamental bullish case. But it’s not just industrial appetite; geopolitical instability is also playing a significant role.
Tensions surrounding Greenland remain a key concern. President Donald Trump has warned of higher tariffs on countries involved in the issue, prompting a response from European Union officials who threatened retaliation and potential delays to existing trade agreements. Even the *threat* of escalating trade wars is enough to send investors flocking to perceived safe havens like silver and gold.
Within the United States, two legal developments are adding to the market’s unease. Court challenges to the administration’s tariff policy could weaken a critical tool of U.S. economic strategy, while questions surrounding the potential removal of Lisa Cook from the Federal Reserve Board of Governors are raising concerns about the central bank’s independence. Any successful effort to remove Cook could reinforce risk aversion and further fuel demand for silver.
The specter of silver tariffs themselves hasn’t disappeared. Last year, concerns about potential tariffs triggered substantial movements of physical silver between trading hubs in Europe and the U.S. While Trump has recently indicated a possible shift away from imposing such tariffs, uncertainty persists. The market’s history demonstrates its sensitivity to mixed signals, making it difficult to predict the ultimate outcome.
In this volatile environment, traditional technical analysis is becoming less reliable. However, traders seeking entry points may want to watch the $84 per ounce level, where the rising trendline aligns with a key support level.
The primary short-term target for silver remains $100 per ounce. Whether it can sustain gains beyond that level will depend on the evolving geopolitical landscape and the resolution of ongoing trade and policy uncertainties.
Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. All assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk belong to the investor. No investment advisory services are provided.
