Pedro Goncalves · Finance Reporter, Yahoo Finance UK Mon 26 January 2026 at 8:00 pm GMT+8 8 min read

In this article: SI=F

GC=F

DX-Y.NYB

COST

JPY=X

The price of silver (SI=F) continues to go up after rising through $100 an ounce as investors, unsettled by Donald Trump’s erratic policy signals and rhetoric, sought refuge in safe-haven assets, showing that gold (GC=F) isn’t the only precious metal that shines.

Trump threatened Canada with 100% tariffs if America’s northern neighbour “makes a deal with China”, and following the US president’s dramatic confrontation with Europe over the future of Greenland, investor nerves have been further frayed.

Read more: London mining stocks jump as fears of US shutdown and tariffs loom

With global financial markets already on edge, concerns have been compounded by growing fears of another US government shutdown after Democrats threatened to block funding for the Department of Homeland Security in the wake of the weekend shooting of a man in Minneapolis by federal immigration agents.

Silver (SI=F), often referred to as the “Devil’s metal” because of its volatility, has also been supported by structural factors including its inclusion on the US list of critical minerals, supply constraints, low inventories and rising industrial and investment demand.

"Silver (SI=F) is shining amid unprecedented demand, boosted by its safe haven status and demand for its industrial use. It’s shot up by 6%, to trade around $109 a barrel," Susannah Streeter, chief investment strategist, Wealth Club, said.

"The dollar’s decline is part of the story. The greenback has taken another hit as concerns continue to swirl the impact of tariffs, high government spending and inflation on the US economy, prompting investors to recalibrate their exposure to the US. A weaker dollar makes precious metals more attractive to buy given they are denominated in the currency. As the march towards shelters offering security continues with the preservation of capital the priority, gold (GC=F) and silver (SI=F) are shining," she added.

At the time of writing, silver futures (SI=F) were trading at $108.7 an ounce, while spot prices stood at $109.1 after hitting a record of $109.44, as investors have sought protection amid growing uncertainty around Trump's policies.

Silver's (SI=F) upward momentum shows little sign of easing after a standout performance in 2025, when the precious metal surged by roughly 150% for the year.

Nick Cawley, contributing analyst for gold (GC=F) and silver (SI=F) supplier Solomon Global, said: "Against this volatile background, and with investors moving away from the US dollar, demand for safe-haven assets continues."

Industrial demand indicators have reinforced the move, with solar and electronics orders staying firm and exchange inventories remaining tight. Limited physical supply has heightened the impact of speculative flows, contributing to a short-term squeeze.

Neil Wilson, Saxo UK investor strategist, said: "Gold (GC=F) surged past $5,000/oz, silver (SI=F) approached $110 and the dollar was roundly offered, as the relentless quest for hard assets continued amid yet more talk of tariffs and US government shutdowns, whilst talk of potential intervention in the yen rattled FX markets to send the dollar sharply lower to lend some extra support to gold and silver."

Read more: Should you invest in gold?

London, the centre of global physical silver trading, typically holds hundreds of millions of ounces in vaults. Inventories have fallen sharply as concerns over potential US tariffs encouraged traders to shift holdings to the US. Strong demand for silver-backed ETFs has further absorbed available metal.

Interest in precious metals has risen in recent months as investors react to higher debt levels in major Western economies and concerns over currency debasement. Gold is up 72% in the past 12 months, moving above the $4,600 mark setting yet another record high. Silver, which usually tracks gold, remains more volatile due to its smaller market size and heightened sensitivity to moves in the dollar.

Joshua Mahony, chief market analyst at Scope Markets, said: "It is little surprise to see gold (GC=F) and silver (SI=F) pushing higher once again, with Polymarket odds spiking to 77% for a government shutdown by the end of the week."

"Coming off the back of the fatal shooting of US citizen Alex Pretti in Minneapolis, hopes of passing the funding bill by Friday have taken a hit as Senate Democrats look likely to push back. Once again this is an example of the dysfunctional political environment in the US, with the country seemingly more polarised than ever."

Neil Welsh, head of metals at Britannia Global Markets, said: "Gold (GC=F) has surged through the $5,000 mark for the first time and silver (SI=F) has pushed beyond $100 an ounce. The combination of a softer dollar, persistent geopolitical tension and ongoing diversification flows away from US assets continues to fuel the rally. The question for many market participants is not whether the trend persists but how long the financing of these positions can be sustained."

The metal’s low price comparatively to gold continues to draw investors seeking more accessible safe haven assets, while its industrial uses in solar technology and components tied to artificial intelligence support structural demand.

Read more: Stocks to watch in 2026

David Morrison, senior market analyst at Trade Nation, said: "Silver’s gains continue to be outsized when compared to gold. This is helped by fears that supplies are tight, especially considering silver’s numerous uses, industrially, medically and otherwise. But care must be taken if chasing prices higher as the risks of a sharp correction only increase as silver makes fresh highs."

Physical silver can be purchased from government mints such as the Royal Mint or precious metal dealers. These dealers typically make their profits by selling silver at a premium above the market (spot) price and buying it for less.

This difference, known as the spread, fluctuates based on the silver's purity, weight, the dealer, and prevailing market conditions of supply and demand.

However, as silver is traded in an unregulated market, it’s vital to approach purchases with caution. Scams are not uncommon, so it's important to take measures to protect your investment.

One such measure is to check if a dealer is a member of the London Bullion Market Association (LBMA). The LBMA sets standards across the industry, helping to ensure that gold and silver that is traded by its members meet specific quality and integrity benchmarks.

Before making any purchase, it’s also essential to evaluate a bullion dealer on factors such as reputation, pricing, storage options, and customer service. These elements are crucial to ensuring a secure and smooth investment experience.

While most bullion dealers are specialist firms, even Costco (COST), the popular wholesale retailer, has tapped into the silver market. Costco UK offers members the opportunity to purchase 500-gram silver bars both in-store and online. Though Costco is not a dedicated precious metals dealer, the retailer has become a convenient option for those looking to add silver and gold to their portfolio.

Retail demand has surged. BullionVault reported that first-time buying is running at levels usually seen only during financial or economic crises.

"Gold and silver have reacted to the first year of Donald Trump's return to the White House like it's the banking crash or COVID pandemic," said Adrian Ash, BullionVault’s director of research.

Read more: What will happen to interest rates in 2026?

"While there's every chance that the current fever in gold and silver prices will sweat itself out, it's hard to see any cure for the long-term bull market in these hard money assets, not in the way that capping QE hit gold and silver in 2013 or the vaccine did five years ago," said Ash.

Beijing's move to further tighten control over minerals it deems critical to supporting domestic industries has only propelled the price of silver. China has published a list of companies authorised to export tungsten, antimony and silver this year and 2027.

The Ministry of Commerce said 44 companies would be permitted to export silver during the period, while 15 firms will be allowed to ship tungsten and 11 antimony. The number of silver exporters is two higher than in 2025, while the quotas for tungsten and antimony are unchanged.

China has imposed a series of export restrictions over the past two years, citing national security concerns and seeking to leverage its dominance in the mining and processing of critical minerals. The measures have been widely seen as a response to US restrictions on advanced chip exports and higher tariffs.

Stocks: Create your watchlist and portfolio

“This is not good. Silver is needed in many industrial processes,” Tesla boss Elon Musk posted on X.

Tony Sycamore, a market analyst at IG, said a “generational bubble” was playing out in silver, as more capital was drawn into the precious metals market.

“The rally in precious metals has been supported by expectations of multiple Fed rate cuts in 2026, alongside robust central bank and private investor buying. However, the dominant driver of late has been a severe structural supply-demand imbalance in silver, sparking a scramble for physical metal,” Sycamore said.

Download the Yahoo Finance app, available for Apple and Android.