Silver Breaks $100 an Ounce for the First Time as Geopolitical Tensions Drive Historic Rally
Silver has surged 200% in the last six months, continuing its historic run
Silver crossed a historic milestone on January 23, rising past $100 per troy ounce for the first time on record, as escalating geopolitical tensions and renewed safe-haven demand sent precious metals sharply higher. The precious metal is now up a remarkable 61% since the new year, sitting at over $114 after a huge 13% surge on January 26.
Precious metals broadly have benefited from heightened uncertainty surrounding conflicts involving Iran and Ukraine, alongside renewed attention on U.S. foreign policy under President Donald Trump during the World Economic Forum in Davos.
At the same time, silver’s breakout stands in sharp contrast to risk assets. Bitcoin has fallen roughly 30% from its October peak of $126,000 to around $89,000, shedding more than $600 billion in market value. While digital assets retrenched, capital has flowed into tangible commodities with physical demand and constrained supply.
Silver’s move above $100 represents a major psychological level for the market, but the rally has been anything but speculative alone. The price surge reflects an industrial necessity colliding with a historic supply squeeze.
Silver closed October 31, 2025, at $48.68 per ounce. By the morning of January 26, it had crossed $110, representing a 200% surge in just six months. The impact on silver’s total market value has been dramatic.
The total above-ground silver supply is estimated at approximately 56 billion ounces, including bullion, coins, jewelry, and industrial products. At October’s price, silver’s total market value stood near $2.73 trillion. At today’s roughly $99 price, that valuation has expanded to approximately $5.56 trillion—an increase of $2.83 trillion in just 90 days.
That gain alone equals roughly 1.5 times Bitcoin’s entire current market capitalization of $1.84 trillion added to silver’s value in three months.
A major driver behind the rally is silver’s growing role in the global energy transition. According to the Silver Institute’s World Silver Survey 2025, solar panels now account for 29% of industrial silver demand, up from just 11% in 2014. Each solar panel requires between 15 and 25 grams of silver, and global solar capacity is forecast to reach 665 gigawatts in 2026.
Electric vehicles are also increasing silver consumption. EVs use approximately 25 to 50 grams of silver per vehicle, compared with 15 to 28 grams in conventional cars. As electrification accelerates, silver demand is becoming structural rather than cyclical.
On the supply side, conditions remain tight. The Silver Institute reports that 2024 marked the fourth consecutive year of global silver supply deficits. Mine production totaled 819.7 million ounces, while total demand reached 1.16 billion ounces. Industrial demand alone hit a record 680.5 million ounces.
The deficit is structural. More than 70% of silver production comes as a byproduct of mining lead, zinc, and copper, limiting producers’ ability to quickly increase output even as prices rise.
Meanwhile, gold has continued to rally alongside silver. Gold traded higher Monday and crossed over the $5,000-per-ounce level for the first time, reinforcing the broader move into precious metals as investors reassess risk, inflation, and geopolitical stability.
Reagan Gold Group:
Join the Silver Rally At Reagan Gold Group, we focus on physical gold and silver ownership as a way to help clients diversify beyond traditional financial systems. Precious metals are tangible assets that exist outside banking balance sheets and have historically played a role during periods of geopolitical uncertainty, currency pressure, and market stress.
