Silver Crosses $100/oz Milestone as Precious Metals Enter Historic Territory

Silver Crosses $100/oz Milestone as Precious Metals Enter Historic Territory

Silver joined gold in record territory this week, breaking above $100 per ounce for the first time in history. Here's what's driving the move and what it means for traders.

The Numbers

• Silver: Above $100/oz (up 26.6% YTD)
• Gold: $4,889/oz record (up 8.86% in 4 weeks, 77% over past 12 months)
• Platinum: Record $2,749/oz

For context, silver was trading around $23/oz just two years ago. This is a 4x move.

What's Driving It

• Central Bank Diversification: Continued move away from dollar-denominated assets
• Fed Uncertainty: Powell probe news and term expiration in May 2026
• Geopolitical Premium: Greenland tensions, Iran, Venezuela all adding to safe-haven demand
• Industrial Demand: Silver's role in solar panels and electronics remains strong
• China Signals: Reports that Chinese firms could order Nvidia H200 chips suggest tech recovery -- but hasn't dimmed precious metals appetite

CME Margin Changes

As we discussed earlier this month, CME switched to percentage-based margins for precious metals on January 13. Gold now requires 5% maintenance (5.5% for higher-risk accounts). This means margins rise automatically as prices rise -- important for position sizing.

Analyst Targets

Goldman Sachs calls gold their "highest conviction trade" with a $5,400 target by year-end. ICBC Standard Bank sees potential for $7,150.

71% of retail investors surveyed by Kitco expect gold above $5,000 in 2026.

Trading Considerations

• Percentage-based margins mean volatility costs more than before
• Gold/silver ratio worth watching for relative value plays
• GDX and GDXJ (miners) have lagged physical -- gap may close or widen

Sources: CNBC, Kitco, Fortune

Have a good weekend!

-- Fi
"Gold is money. Everything else is credit." -- J.P. Morgan