Silver extended its extraordinary run on Tuesday, rebounding sharply after a violent selloff a day earlier, as investors continued to pour into precious metals in search of protection from currency weakness and policy uncertainty tied to U.S. President Donald Trump’s trade agenda.
March silver futures jumped as much as 5.3% to $74.17 an ounce by mid-morning in London, pushing year-to-date gains to about 153%. The move followed one of the most dramatic trading sessions in recent memory. Silver briefly surged to a record $80 an ounce overnight on Monday before reversing course and posting its steepest single-day fall since February 2021, closing down 8.7%.
Market participants described the price action as symptomatic of a market in frenzy mode. “This is a historic move,” KKM Financial CEO Jeff Kilburg said on Monday. “We haven’t seen a move like this in a long time.”
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Traders pointed to crowded speculative positions, thin liquidity at record levels, and aggressive profit-taking as key reasons behind the sudden reversal.
Like gold, silver has been swept up in a powerful rush into hard assets in 2025, as investors seek a hedge against the U.S. dollar and growing unease over global trade. Trump’s controversial tariff policies, including fresh threats of broader import duties and a more confrontational stance toward major trading partners, have raised concerns about inflation, supply chain disruptions, and retaliation, weakening confidence in the dollar and driving demand for alternative stores of value.
Gold has mirrored silver’s surge this year, reinforcing the narrative that precious metals have become a primary refuge for investors unsettled by policy unpredictability. A softer dollar has further amplified the rally, making metals cheaper for non-U.S. buyers and encouraging inflows from abroad.
Silver’s rally has also been distinguished by its strong industrial exposure. Unlike gold, a significant share of silver demand comes from manufacturing, particularly in electronics, solar panels, data centers, and electric vehicles. That has tied silver prices not only to financial stress but also to expectations around the energy transition and technology investment, adding momentum during periods of strong demand but also intensifying volatility.
Supply concerns have added to the bullish tone. Over the weekend, Tesla CEO Elon Musk warned that China’s planned export restrictions on silver, due to take effect on January 1, were “not good,” highlighting the metal’s importance across multiple industrial processes. His comments underscored fears that tighter controls from a key supplier could exacerbate already strained markets.
Other metals moved higher alongside silver. Gold futures recovered from Monday’s sharp losses, rising 1.2% to $4,394.30 an ounce, while copper futures gained 1.9% to $5.673 an ounce, reflecting optimism around industrial demand and infrastructure spending.
Still, some analysts caution that the conditions that powered precious metals this year may not persist indefinitely. Florian Ielpo, head of macro at Lombard Odier Investment Managers, said commodities should remain among the strongest asset classes in 2026, but with leadership shifting away from safe-haven metals.
“With an expected reacceleration of growth in many countries in 2026, precious metals and their safe-haven status might lose some of their shine,” Ielpo said on CNBC’s “Squawk Box Europe,” adding that future gains could be driven more by cyclical commodities tied to economic expansion rather than defensive assets.
Silver’s dramatic swings currently highlight a market caught between powerful tailwinds and rising fragility. While fears over the dollar, trade policy uncertainty, and supply constraints continue to support prices, the scale of recent moves suggests investors are navigating a rally where conviction remains high, but so does the risk of abrupt and painful corrections.