Here’s everything investors need to know about the historic silver rally in 10 charts

Core Viewpoint - Silver prices are experiencing a significant upward trend driven by a combination of industrial demand, speculative interest, and geopolitical factors, creating a "perfect storm" for higher prices [1][4][17]. Supply and Demand Dynamics - Silver is increasingly in demand for applications in solar panels, electric vehicles, and electronics, while supply is constrained due to China's export controls and a supply deficit of 230 million ounces in 2025 [2][18]. - The market is currently in backwardation, indicating that spot prices for silver are higher than futures prices, reflecting tight market conditions [7][8]. Market Behavior and Speculation - Speculative interest in silver has surged, with a notable increase in retail inflows into silver ETFs, reaching a record of $921.8 million recently [15][16]. - Futures traders are predominantly long on silver, with low short interest, indicating bullish sentiment in the market [20]. Price Movements and Historical Context - Silver prices have risen over 25% since the beginning of 2026, with some analysts predicting prices could exceed $100 per ounce [4][25]. - The recent price rally has been characterized by extreme volatility, with futures prices significantly above historical moving averages, reminiscent of past market events in the 1980s [24][25]. Geopolitical and Economic Influences - Escalating geopolitical concerns and heavy government debt loads in developed countries are contributing to the demand for silver as a hedge against economic instability [17]. - The migration of silver supplies from London to New York due to trade concerns has further tightened the market, impacting liquidity [10][11].