Silver’s perfect storm lifts prices as demand outruns supply

Silver has surged into a historic rally driven by a rare mix of strong industrial demand, heavy speculative buying, and a tightening physical supply that has produced backwardation (spot prices above futures). The run, which saw silver soar about 140% in 2025 and rise more than 25% since the start of 2026, has been aided by central-bank and sovereign-wealth demand, a migration of physical metal from London to New York vaults amid tariff fears, and record retail inflows into silver ETFs. Traders remain bullish, with high open interest in silver options and prices trading well above key moving averages, though analysts warn that extreme bets can precede pullbacks as deficits are forecast to narrow in 2026–27.