Silver Price Extends Volatile Run with Surge Above $86

Silver price extends volatile run with a sharp surge above $86 per ounce on Wednesday. The rally followed renewed investor interest and fresh deficit forecasts from the Silver Institute. However, traders reported continued swings as industrial demand weakens.

Spot silver climbed as much as 6.6% before trimming gains later in the session. The metal has now recovered roughly one-third of its late-January crash losses. Despite last month’s 36% plunge, silver still shows gains of more than 160% year over year.

Silver Price Extends Volatile Run as Deficit Outlook Persists

Silver price extends volatile run as the Silver Institute projects a sixth consecutive annual market deficit. The Institute expects investment demand to outweigh softer industrial consumption in 2026. As a result, investors continue to treat silver as a strategic hedge.

Solar sector demand will likely decline moderately next year. Manufacturers now seek alternatives due to elevated silver prices. Consequently, industrial offtake may ease even as bullion investment accelerates.

Over the past year, silver rallied to multiple record highs. At its peak, prices surged nearly fourfold to above $121 per ounce. Safe-haven flows and retail participation fueled the historic climb.

Physical Tightness and Market Volatility Shape Silver Price Dynamics

Physical supply constraints amplify the silver price extends volatile run narrative. Traders in China report limited sellable inventory and order backlogs. Front-month contract premiums have surged amid speculative demand.

Commerzbank analysts noted that extreme volatility has affected investor confidence. Meanwhile, State Street’s Aakash Doshi observed renewed dip buying as markets stabilize. Therefore, volatility continues to attract both risk and opportunity.

BMO Capital Markets challenged the deficit narrative in a recent note. Analysts argued that inventory shifts do not equal structural shortages. They expect silver to become cheaper relative to gold as availability improves.

Gold prices also moved higher, briefly topping $5,100 per ounce. However, gold pared gains later in the session, reflecting broader precious metals volatility.

SuperMetalPrice Commentary:

Silver price extends volatile run at a critical point for precious metals markets. Strong investment inflows support prices, yet industrial softness limits upside momentum. If deficits persist and physical tightness remains, volatility will likely stay elevated. Investors should monitor solar demand trends and Chinese inventory flows for clearer price direction.