Silver has just made its mark in the history of financial markets, as for the first time ever, the spot price has exceeded 100 USD per ounce. This movement has attracted the attention of investors who have long been observing growing demand pressure. Importantly, silver is increasingly returning to its role as a safe haven in times of uncertainty.

The silver market is currently in a unique moment that combines macroeconomic factors, supply tensions, and increasing interest from individual investors.

Historical price record of silver and market reaction

Silver broke the level of 100 USD per ounce, which previously only applied to futures contracts. This time, the spot price also remained above this psychological barrier. Investors bought nearly every dip in price, strengthening the upward trend. The market reacted euphorically, although the first signs of caution appeared.

The forecast for silver remains bullish, however, the analyst points out possible profit realizations. Such a move could trigger short-term downward pressure. However, this does not mean a change in the long-term trend. Rather, it signals a natural phase after strong increases.

It is worth asking whether this is already the market peak. The answer is: not necessarily yet. There is a lack of a clear red candle, which often signals a local peak. As long as it is not visible, the bear remains on the sidelines.

The rise in silver prices is driven by several factors simultaneously, which strengthens the entire movement. Significant is the demand for safe assets in an uncertain environment. Additionally, the market considers interest rate cuts. However, the key element remains limited supply.

Silver production is heavily dependent on the extraction of other metals. This means that it cannot be quickly increased with rising prices. Declining ore quality and environmental restrictions further limit supply. The lack of new mining projects has maintained pressure for years.

Global demand has exceeded mine supply for the fifth consecutive year. This creates a structural deficit in the market. In such conditions, even a slight increase in investor interest triggers large price movements. Silver is becoming increasingly sensitive to changes in sentiment.

The most important factors supporting the rise in silver prices are:

  • limited supply and lack of new mines

  • investment demand in times of uncertainty

  • weakening dollar and concerns about monetary policy

Where silver may head after the record

The natural question for the investor remains what the market will do next. Realizing profits at such levels seems healthy. Even the most bullish market participant assumes a temporary cooling. However, this does not automatically mean an opportunity to short.

Late buyers should exercise particular caution. The price may retreat from record levels. However, the long-term trend still remains supported by fundamentals. Key remains risk management, not the pursuit of euphoria.

From the perspective of the dollar, the week brought a lot of volatility related to tariffs. Currently, volatility has decreased, and the dollar remains weaker against commodity currencies. This favors precious metals. Investors are increasingly talking about 'devaluation of the dollar.'

Fear of political influence on the Fed additionally directs capital towards silver. Until a strong peak signal appears, the upward trend remains intact. The bear must wait for a better moment.

Silver as money and investment over the centuries

Silver has served as money for centuries in many civilizations. Greece, Rome, and China minted silver coins as early as ancient times. In medieval Europe, silver became the basis of the monetary circulation. In the 17th century, it was the pillar of the first currency systems.

The breakthrough occurred in the 18th century with the discovery of deposits in Mexico. This event increased the availability of silver worldwide. In 1792, the USA recognized silver as official money. However, over time, this metal limited the flexibility of monetary policy.

In the 20th century, silver began to be perceived mainly as a commodity and investment. Its price became more market-driven. Investors appreciated the lower entry threshold compared to gold. As a result, silver gained popularity among smaller investors.

Currently, investing in silver includes coins and bars. The most popular coins are Silver Eagle, Maple Leaf, and Kangaroo. Various weights are available, from 1 ounce to 1 kilogram. Silver also has wide industrial applications, which strengthens its long-term value.

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