Core Viewpoint - Silver experienced a remarkable surge of 137% from February 2025 to February 2026, raising questions about the sustainability of this rally amidst recent volatility [2][3]. Silver Price Action - Silver's price increased from $29.46 to $69.72, with a notable 17.5% selloff in January 2026 due to Federal Reserve chair speculation [2][3]. - The metal's 137% gain in one year significantly outpaced its 176% return over the past five years, compressing a typical five-year performance into just twelve months [3]. - Silver tested resistance above $71 in early February before experiencing a pullback, with a brief spike to $95 before the January crash [3]. ETF Flows and Investor Sentiment - The iShares Silver Trust (SLV) holds $51.5 billion in net assets and has a 0.5% expense ratio [4]. - Investor sentiment around SLV fluctuated during the January crash, with a recovery to bullish levels (64-68 score range) by mid-February, indicating a repositioning by retail investors [4]. Silver Miners: Leverage to the Metal - Silver mining stocks saw substantial gains, with First Majestic Silver (304%), Hecla Mining (256%), Coeur Mining (211%), and Pan American Silver (135%) [5]. - Mining companies benefited from higher silver prices and operational improvements, but their valuations have increased significantly, with First Majestic at 164x trailing earnings and Pan American at 33x [5]. What's Driving Silver and What's Next - Industrial demand for silver is supported by sectors such as solar panel production, AI infrastructure, and electronics manufacturing, providing structural support for investment speculation [6]. - The volatility in silver prices highlights its sensitivity to dollar strength and Federal Reserve policy expectations, with central bank gold buying indirectly benefiting silver through the gold-to-silver ratio [6].