The price of silver has hit record levels in 2026, only to quickly give back gains. The year is barely a month old, and there’s already been plenty of volatility when it comes to the price of silver. And with the economy and the markets facing considerable uncertainty ahead, investors may continue loading up on the precious metal as the year goes on.
Silver reached a new all-time high of more than $121 per ounce in January. The big question is whether it can soar even higher this year, perhaps to $200, and whether investing in the iShares Silver Trust (NYSEMKT: SLV) is a good move right now. I’ll aim to answer those questions below.
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The price of silver crashed more than 30% on Jan. 30, in what would be its worst single-day performance in decades. The reason for the sudden, quick decline is President Trump’s announcement of his pick for the Federal Reserve’s next chairman: Kevin Warsh. While the move seemed to be one that might calm the overall market with respect to the Fed’s independence, and it helped the U.S. dollar rally, it had the reverse effect on the price of silver.
As of Feb. 3, silver was trading at around $88 per ounce, a steep decline from its recent highs. What this appears to suggest is that the price of the metal may be closely tied to investor confidence in not just the overall stock market and economy, but also the Fed’s independence.
As investor concerns grew about who would replace Jerome Powell, silver prices rose. Now, with what appears to be greater stability, investors have been dumping the safe-haven asset. But even with the volatility, the iShares Silver Trust is up over 12% to start the year, which is better than the S&P 500 and its gains of around just 2%.
Whether silver returns to its previous highs and soars even higher likely depends not only on market sentiment but also on how investors feel about the incoming Fed leadership. I think there is a possibility for silver to rally again, given the interest from retail investors to load up on silver stocks and related investments, as concerns about the economy may lead to growing demand for safe-haven assets.
For that reason, I also wouldn’t be surprised if it hit $200, only because of the potential hype and excitement from retail investors and the collective power they hold. However, I also wouldn’t expect that to happen, simply because of how hot silver has been in the past several months — a slowdown is arguably far overdue. The iShares Silver Trust can be a good investment to hold in your portfolio as a way to diversify it, but you should be comfortable with the volatility that can come with it.
