Silver Shatters the $100 Barrier in Unprecedented Rally

The price of silver has achieved a historic milestone, trading above $100 per troy ounce for the first time ever. On Friday, the metal surged to $101, marking a single-day gain exceeding five percent. This rally caps an extraordinary period of growth, with silver posting a 40% advance year-to-date, following an explosive 147% surge throughout 2025. Analysts point to a confluence of fundamental factors driving this ascent, suggesting it is more than a speculative bubble.

The current price dynamics are fueled by a powerful collision of investment demand and physical shortage. Since October, retail investors have been purchasing physical bars and coins in massive volumes, while billions of dollars have simultaneously flowed into physically-backed silver ETFs. This surge in investment interest is hitting a market already under significant structural strain.

Warehouse inventories tell a compelling story. London vaults recorded a record low of 136 million ounces by the end of September. Although stocks recovered to approximately 200 million ounces by year-end, this remains far below the 360 million ounces held during the Reddit-driven rally of early 2021. In New York, registered COMEX inventories have contracted by 114 million ounces since October, now standing at 418 million. This represents an outflow of roughly $11 billion in value.

Key Market Metrics:
- Silver achieves first-ever break above $100 per ounce
- 2025 annual performance: +147%, the strongest gain since 1983
- Gold-to-silver ratio collapses to a 14-year low of 50:1
- COMEX inventories shrink by 114 million ounces
- Fifth consecutive year of structural supply deficit

Should investors sell immediately? Or is it worth buying Silber Preis?

Signals from a Key Ratio and Fundamentals

The metal's outperformance is highlighted by a dramatic move in a classic indicator. The gold-silver ratio has plunged to 50:1, its lowest level in 14 years. This is a stark contrast to April 2025, when 105 ounces of silver were required to purchase one ounce of gold. Gold itself is trading at a record high of $4,988 per ounce.

Beneath the price action, fundamental tightness persists. The market is grappling with a supply deficit for the fifth year running. Recycling capacity is unable to keep pace with demand due to a lack of high-grade refining capabilities. This structural imbalance is expected to continue through 2026, providing underlying support for prices.

Mounting Caution Amid the Frenzy

Despite the robust fundamental backdrop, warning signs are accumulating. BofA strategist Michael Widmer estimates a fundamentally justified price for silver near $60 per ounce. He notes that demand from solar panel manufacturers likely peaked in 2025, while broader industrial demand is suffering under the weight of record prices. Technical analysts identify the $90 level as a critical support zone.

Furthermore, potential relief for the overheated market may be on the horizon. Following the mid-January waiver of tariffs on critical metals, additional drawdowns from U.S. stockpiles are anticipated, which could introduce a moderating influence on prices.