The silver price hit a new all-time high on Tuesday (January 13), rising as high as US$89.19 per ounce.
The white metal’s most recent rise continues a breakout that began on January 9 on a mixed bag of economic uncertainty, rising geopolitical tensions in Venezuela and Iran and underlying industrial demand strength.
Adding fuel to the fire this week are increased expectations for a lower interest environment.
On January 9, the US Department of Justice served the US Federal Reserve with grand jury subpoenas, threatening a criminal indictment over Chair Jerome Powell’s testimony to the Senate Banking Committee this past June.
The event has sparked concerns that US President Donald Trump’s feud with the Fed over interest rates has taken a darker turn, although Trump has denied knowledge of the department’s move.
Powell’s term as Fed chair ends in May, but two years still remain on his term as a governor of the board.
The Fed’s next rate announcement is set for January 28, and CME Group’s (NASDAQ:CME) FedWatch tool shows strong expectations for a hold. That’s despite core consumer price index (CPI) data showing that inflation rose by a lower-than-expected 0.2 percent for December. On an annual basis, core CPI was up 2.6 percent.
Target rate probabilities for January Fed meeting.
Chart via CME Group.
Trump has frequently criticized Powell for not lowering rates quickly enough, and Powell’s replacement, who has not yet been announced, is widely expected to be more in line with Trump’s views.
“We see increased interference with the Fed as a key bullish wildcard for the precious metals in 2026,” Carsten Menke, head of next-generation research at Julius Baer Group, told Bloomberg. He noted that because silver is a smaller market than gold, it typically reacts “more strongly to such concerns.”
Silver price chart, January 5 to 13, 2026.
Silver and its sister metal gold tend to fare better when rates are lower, meaning rate cut expectations coupled with the investigation of Powell and the Fed have helped to stoke prices for the precious metals.
While silver is known for lagging behind gold before outperforming, it’s now ahead in terms of percentage gains — silver is up about nearly 200 percent year-over-year, while gold has risen around 72 percent.
The yellow metal also hit a new all-time high on Tuesday, peaking at US$4,633.99 per ounce.
In addition to rate-related factors, silver’s breakout this year has been driven by various other elements.
As a precious metal, it’s influenced by many of the same factors as gold, but its October price jump, which took it past the US$50 level, was also driven by a lack of liquidity in the London market.
While that issue appears to have resolved, silver remains in a multi-year supply deficit. Tariff concerns and silver’s new status as a critical mineral in the US have also provided support.
In addition to its appeal as a precious metal, silver’s industrial side shouldn’t be forgotten — according to the Silver Institute, the white metal’s ‘global silver industrial demand is poised to grow further as demand from vital technology sectors accelerates over the next five years. Sectors such as solar energy, automotive electric vehicles and their infrastructure, and data centers and artificial intelligence will drive industrial demand higher through 2030.’
What’s next for the silver price?
Time will tell what’s next for silver, but some experts see it continuing to outperform gold in 2026.
‘So is it going to US$100 or US$200? It’s possible. I don’t really care, because … I don’t use either my silver or my gold as speculative vehicles. That’s not what they’re about to me.’
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.