Silver Soars 15% in Days as Speculative Frenzy Intensifies

Silver prices have caught fire lately, climbing roughly 15% within a week and briefly topping $93.5 per ounce, a level not seen before. Traders have been riding a rollercoaster, as this blistering pace of gains unfolded over days rather than the usual months.

The metal's volatility intensified following the Trump administration's move to delay import tariffs on key minerals, which momentarily cooled the rally. Still, silver continues to attract a frenzy of speculative activity from both buyers and sellers, making trading conditions increasingly erratic and challenging, according to market observers at SAXO Bank.

Underlying fundamentals show some easing in physical tightness. Silver inventories are flowing back from Comex warehouses to Europe, and high prices are beginning to dent industrial demand. These shifts may help rebalance supply and demand, which had been under pressure amid the metal's rapid price appreciation.

Meanwhile, Chinese traders are playing their part, with Shanghai silver prices maintaining a hefty premium, hovering about $10 an ounce above London benchmarks. This geographical price gap underscores robust speculative appetite in Asia, keeping global silver markets on edge.

The latest figures reveal retail investors pouring nearly $922 million over the past month into silver-backed exchange-traded funds like the iShares Silver Trust (NYSE: SLV). Just on Wednesday alone, the ETF noted an inflow of $69.2 million, the largest single-day inflow since 2021's last big silver surge.

What sets this rally apart from the meme-stock-fueled 2021 spike is its breadth and persistence. Analysts at Vanda Research highlight that this run transcends mere hype, characterizing it as a "structural accumulation" that positions silver as a macro trading asset instead of a short-term speculative fad.

As of Friday, silver traded down about 1.1% to $91.30 an ounce but remains well above the year's starting price around $72.6. This dramatic ascent has also reflected positively on related mining stocks, with the MSCI ACWI Select Silver Miners Investable Index soaring roughly 225% over the last 12 months.

The question now is whether silver can sustain this blistering pace or if the current interest-fueled by retail inflows and global price divergence-is setting the stage for a correction. With such wild swings and intense activity, it's clear silver is more than just a flash in the pan this time around.