If you woke up and checked the price of silver this morning, you probably did a double-take. It is currently sitting at $90.88 per ounce. Just a few years ago, $30 felt like a mountain top. Now, we are breathing the thin air of a historic bull run that has turned the precious metals market upside down.
But here is the kicker: even though we are near all-time highs, the price actually slipped about 2% in the last 24 hours. It is a strange vibe in the market right now. People are simultaneously terrified of missing the boat to $100 and terrified that the bubble is about to pop.
Honestly, silver is acting less like a boring metal and more like a high-growth tech stock. It is volatile. It is loud. And it is making gold look like a slow-moving retiree.
The $90 barrier and the "Tariff Chill"
Why did the price of silver this morning take a breather? It basically comes down to a game of political chicken. Earlier this week, silver hit a staggering peak of $93.90. Then, the news broke that the U.S. government decided to delay those widely expected tariffs on critical minerals.
The market had already "priced in" the chaos those tariffs would cause. When the delay was announced, the air hissed out of the balloon.
- Spot Price: $90.88 (down from the $93.52 high on Jan 15)
- Sentiment: Bullish but cautious
- Technical floor: Analysts like those at LiteFinance are eyeing $81.51 as the next major support level if this slide continues.
You’ve got to remember that silver is a double agent. It’s half "safe haven" and half "industrial workhorse." When trade policy gets murky, the industrial side of silver gets nervous. If manufacturers think they can get raw materials cheaper because of tariff delays, they stop panic-buying. That is exactly what we are seeing in the early hours today.
Why $100 silver isn't just a meme anymore
For a long time, the "Silver to $100" crowd was mostly found in the dusty corners of Reddit or fringe financial blogs. Not anymore. Major institutions are looking at the math, and the math is kind of scary.
We are currently in the fifth straight year of a silver supply deficit. We are literally using more silver than we are digging out of the ground.
Most people don't realize that silver is a byproduct. You don't usually go "silver mining." You go lead, zinc, or copper mining and find silver as a "bonus." Because of that, miners can't just flip a switch and produce more silver just because the price went up. It takes 10 to 15 years to bring a new mine online. We are stuck with what we have, and what we have isn't enough for the "Green Revolution."
The AI and Solar squeeze
Every solar panel needs silver. Every electric vehicle (EV) needs silver. And now, the massive AI data centers being built across the globe are devouring silver for high-end circuitry and power components.
"Silver is now a national security issue," says some of the recent chatter from D.C.
It's true. If the supply chain for silver snaps, the transition to renewable energy grinds to a halt. This structural shortage is the real reason the price of silver this morning remains so high despite the minor 2% dip. The "paper" price on the COMEX might wiggle because of a tariff announcement, but the physical "scarcity" hasn't changed one bit.
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Misconceptions about the Gold-to-Silver Ratio
You'll hear "experts" talk about the gold-to-silver ratio like it's a holy scripture. Historically, it sat around 15:1 or 20:1. For most of the last decade, it was a ridiculous 80:1 or even 100:1.
Right now, that ratio has compressed to about 57:1.
What most people get wrong is thinking this means silver is "too expensive" now. Actually, if you look at the industrial demand, some argue the ratio should be even tighter. If silver continues to outperform gold—which it has by over 140% in some stretches recently—we could see that ratio drop into the 30s. If that happens while gold stays at $4,600, silver isn't just a $100 metal; it's a $150 metal.
The Powell Factor and the Federal Reserve
There is a weird cloud hanging over the Fed right now. Rumors and legal pressures regarding Chair Jerome Powell’s independence have investors spooked. Precious metals love a good scandal.
Whenever people lose trust in the "system" or the "dollar," they run toward things they can hold in their hands. Silver is the "poor man's gold," but at $90 an ounce, it’s becoming the "smart man’s insurance."
Expect high volatility as we approach the next Fed meeting. If they hint at holding rates steady instead of cutting, the price of silver this morning might face more downward pressure. Why? Because silver doesn't pay a dividend. If you can get 5% from a government bond, you're less likely to hold a metal that just sits in a vault. But if rates drop, silver becomes the belle of the ball.
How to play this move
So, what do you actually do with this information?
- Watch the $86.19 level. If silver breaks below that, we might see a fast trip down to $83 or even $81. That’s not a crash; it’s a healthy correction in a massive bull market.
- Physical vs. Paper. If you're buying physical coins or bars, be prepared to pay a "premium." Dealers are charging well over the spot price because they know how hard it is to get actual metal right now.
- Diversify your entry. Don't go "all in" at $90. The market is overbought according to the Relative Strength Index (RSI), which is hovering near 87. That is "screaming hot" territory.
The price of silver this morning is a reminder that the old rules of the 2010s are dead. We are in a new era of high-priced, high-demand strategic metals. Whether it’s a temporary peak or just a pit stop on the way to triple digits depends on the next few weeks of U.S. trade policy and Fed whispers.
Actionable Next Steps:
- Check the local coin shop premiums: Don't just look at the spot price; see what people are actually paying for a 1-ounce Silver Eagle. If the premium is over 20%, the market is overheated.
- Set price alerts at $87.50 and $94.00: These are your "breakout" or "breakdown" zones.
- Audit your "paper" holdings: If you own silver ETFs (like SLV), read the prospectus to see if they are actually adding physical silver or just trading derivatives. In a real supply squeeze, the physical metal is king.