Silver and gold prices retreated on Thursday after U.S. President Donald Trump temporarily held off from imposing fresh tariffs on critical mineral imports. The white metal has been on a historic rally over the past year, with prices surging by 166%, from approximately $30 per ounce at the start of 2025 to a peak of $88 per ounce by the end of December.
This explosive rally was driven by a confluence of factors, such as strong industrial demand for manufacturing solar panels, electric vehicles, and AI infrastructure, overwhelmed global supply chains, geopolitical tensions, a weakening U.S. dollar, and expectations of rate cuts by the Federal Reserve.
Silver breakout above key resistance levels, including the 2011 high at $49.81, confirmed the long-term bull run.
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Silver price has jumped nearly 30% over the course of January 2026, as investors increasingly turn towards hard assets such as precious metals amid ongoing geopolitical risks, supply tightness, and renewed uncertainty surrounding the Fed’s policy direction.
Speaking with Bloomberg, Stefan Gleason, CEO of Money Metals Exchange, said that silver’s “relentless” momentum is “unusual” and has catalyzed on the real side of the market, as there has been a “tremendous” new influx of retail buyers and sellers. The head of one of the top U.S. bullion dealers also added that the market is witnessing record levels of both buying and selling activity.
Money Metals Exchange recorded its largest sales month in its 16-year history in December 2025, when silver gained nearly 27%. This led many longtime holders of silver and gold bars and coins to cash out gains, while newcomers were enticed to hoard the fresh supply. The bullion dealer charges retail buyers $12 for an ounce of American Eagle silver coins, while sellers pay between $5 – $8 to the exchange to take the metal from their hands. Both these rates are at their highest levels ever in dollar terms.
The last time silver was trending was in 2021, when it was caught up in the Reddit day traders’ short-squeeze mania that saw prices surge 14% to peak at $30 an ounce in three days. The adverse effect of this was that dealers in the physical market were unable to process orders of silver coins and bars for several days due to the unprecedented demand.
Gleason noted that the demand since Christmas is similar to five years ago, where there is just a massive amount of unexpected volume. Other American silver dealers, including Apmex, SD Bullion, and JM Bullion, have informed customers that there could be delays in processing and shipping times for their coins and bars. The demand is so strong that Money Metals has hired 40 people since the last week of December, and needs to hire 30 more to handle the market, which Gleason said is “just overwhelming, but exciting.”
U.S. Mint Halts Sales of Silver Coins as Prices Surge Past $90
Meanwhile, the U.S. Mint, the agency responsible for manufacturing legal tender coinage in the country, has suspended all sales of silver numismatic products as of Wednesday, citing extreme price volatility and the inability to accurately price coins due to the price of silver surpassing $90 per ounce for the first time in history, registering an all-time high of $92.22 an ounce.
This unprecedented move comes amid a historic surge in silver demand, with U.S. Silver Eagles hitting over $100 per coin at dealer stores. The Mint stated that rapidly rising costs have made it impossible for it to maintain stable pricing, prompting a temporary halt to sales while evaluating pricing adjustments.
Analysts interpret this development as a sign of severe physical supply stress, with paper silver markets decoupling from the physical market. The suspension also reflects a structural imbalance in the silver market, where paper contracts are vastly outnumbering physical metal, and growing demand from investors, central banks, and industries is overwhelming supply chains.
However, the suspension only applies to numismatic sales, as the Mint will not halt production of silver bullion coins. Numismatic silver is silver coins or pieces that are valued more than their metal content. Unlike traditional bullion, which is priced primarily based on its weight and purity, typically 99.9% or higher, numismatic silver derives its value from factors such as rarity, historical significance, condition, age, design, and collector demand.
Silver (XAG) is currently trading at $90.00 – down 3.42% in 24 hours.
