Silver is again stealing the spotlight across global markets on Wednesday.
At the time of writing, the price of silver has jumped more than 7%, pushing it to around US$111 per ounce, near record levels.
Earlier in the week, the white metal briefly touched a new high of US$117.69 per ounce.
Silver is now up more than 55% over the past month, making it one of the strongest-performing commodities anywhere right now.
Let's unpack what is driving this remarkable rally.
Image source: Getty Images
Trade tensions, tariffs, and political instability are adding to the uncertainty
Recent moves by the Trump administration have added another layer of uncertainty to global markets.
On Tuesday, US President Donald Trump announced that tariffs on South Korean imports would be raised from 15% back to 25%. The move affects goods including autos, lumber and pharmaceuticals, and follows delays in ratifying a trade deal agreed between the two countries last year.
These tariff increases are part of a broader rise in global trade tensions. They come alongside fresh tariff threats involving other countries and regions, including parts of Europe.
That uncertainty is pushing investors toward traditional safe-haven assets. Gold has already surged to record highs, and silver is now following closely behind as investors look for protection from political and economic instability.
Silver still has room to run relative to gold
One technical measure many analysts watch closely is the gold to silver ratio. It compares how many ounces of silver are needed to buy one ounce of gold.
Although that ratio has fallen recently as silver has caught up to gold, it remains elevated compared to levels seen during previous precious metals bull markets. Some investors see that as a sign that silver still has room to run if the rally continues.
Silver has also now made new highs in US dollar terms. Many long-term bulls believe that, despite the sharp move already seen, the metal may still be in the early stages of a larger re-rating.
How can investors get exposure to silver?
There are 3 common ways investors can gain exposure to silver.
Buy physical silver
This means buying silver bars, coins or other forms of metal. It gives direct ownership and can act as a hedge against inflation and currency weakness. People should consider secure storage and insurance.
Invest in ASX silver mining companies
Shares in companies that produce or explore for silver can offer leveraged exposure to rising prices. That means the share prices could move more than the price of silver itself, but they also carry company and operational risks.
Buy the Global X Physical Silver Structured ETF (ASX: ETPMAG)
This ASX-listed ETF provides exposure to physical silver without the need to buy and store metal. It is an easy way for everyday investors to add silver to a portfolio in a liquid and cost-effective way.
Foolish Takeaway
Silver's surge above US$111 per ounce reflects a powerful mix of safe-haven demand, tight physical supply, rising industrial use, and growing geopolitical uncertainty.
Recent tariff moves by the Trump administration have added extra fuel to the rally, reinforcing silver's role as both a precious and industrial metal.
While volatility is likely after such a sharp run, the underlying forces supporting silver remain strong.
