The price of spot silver recently crossed the 90 USD mark, setting a major milestone for the metal. The price surge is driven by favorable market dynamics. Silver futures currently trade at 90.83 USD, which is up by 5.20% with a daily high of 90.935 USD. This surge follows from a previous close of 86.338 USD and a daily low of 86.75 USD.
The yearly high price of spot silver stands at 90.935 USD, which is far above the yearly low price of 28.31 USD and well beyond the 50-day moving average of 61.21 USD. More importantly, the silver price has crossed the 90 USD barrier much earlier than was forecasted; the forecasts made in early 2025 had eyed the silver price to reach US$75-90 by late 2026 despite the supply deficits and industrial demand.
Key Drivers of Silver Price
The earlier-than-expected surge in silver’s price has been attributed to a combination of reasons. The US employment data was weaker than expected, as indicated in the December 2025 jobs report. There was only a slight rise in the nonfarm payrolls by 50,000, which was well below the forecasted rate. There was only a slight fall in the unemployment rate; the unemployment rate only edged down slightly to 4.4%.
Inflation has been sticking around the 2.7% mark, which is above the Federal Reserve’s 2% target. High inflation has limited aggressive rate cut expectations despite the softening jobs data. This market dynamic lowers the opportunity cost of holding non-yielding precious metals like silver and gold.
Geopolitical Tensions
Another factor that has influenced the silver prices is the rising tensions in Iran and Venezuela, which have indeed driven the demand for silver as a safe investment, amplifying its price surge beyond $90 per ounce in January 2026.
Deadly protests intensified in Iran amid a collapsing rial (nearing 1.4 million per USD), and the resultant economic crisis has sparked speculations about the regime’s instability. Moreover, President Trump has threatened military options and 25% tariffs on nations trading with Iran. This has heightened the geopolitical risks and boosted the use of precious metals such as silver as hedges.
In the case of Venezuela, the US-led raid captured President Nicolás Maduro on January 5, 2026, and Trump had announced US control over Venezuelan oil and gold reserves to secure these resources. This escalation, together with reactions from China and Russia, triggered immediate purchase of silver as a safe-haven, lifting the silver price by 7.95% to $77/oz on January 5.
Silver’s greater volatility compared with gold, stemming from its dual role as both an industrial and investment metal, amplified market flows, pushing spot prices above $90, while gold remained relatively steady near $4,600 per ounce.
Supply-demand Dynamics
Persistent physical supply deficits for silver, which were estimated to be at over 200 million ounces annually, have tightened the markets and propelled prices above $90 per ounce in January 2026.
There has been a surge in industrial demand for silver. The increasing demand for silver for use in solar photovoltaics (now 15% of total demand), electronics, AI hardware, and EV batteries has outpaced mine production growth, which lags at just 1-2% yearly. Silver’s critical role in these green tech sectors is expected to continue, thus increasing the demand for the metal. Export bans from key producers like Peru and Mexico have further exacerbated global shortages, leading to a price surge.
