SILVER smashed through $100 an ounce today as it reached the milestone for the first time with gold nearing $5,000 in a “wild time for the commodities market”.
The metal hit $100.44 during trading today, as a “perfect storm” of industrial demand, specifically from the AI, solar, and EV sectors colliding head-on with geopolitical instability with US President Donald Trump threatening tariffs and stealing Greenland from Denmark.
Silver has risen hugely in a short amount of time – it was just $30.54 a year ago today.
Gold also neared the milestone of $5,000 an ounce, rising to $4,968 today. It was at $2,758.54 a year ago today.
Experts said it was “a wild time for the commodities market” but warned potential investors that metals can be a risky commodity to invest in.
Anita Wright, Chartered Financial Planner at Ribble Wealth Management, said she expects gold to break the milestone soon.
She added: “Silver above $100 is a loud signal that the paper market is being stress-tested by physical demand. The squeeze is visible in Comex (trading platform) as price rose, silver volume eased, which is consistent with shorts finding it harder to stay in the game.
“Gold is in a classic bull market so the metal reaching $5,000 is a matter of timing but the path will be volatile. For ordinary investors, the real issue is currency debasement: treat metals as insurance, avoid leverage, favour allocated/fully-backed exposure, and size positions so you can endure pull-backs.”
David Belle, Founder and Trader at Fink Money, said he doesn’t expect the price of silver and gold to remain high for long.
He continued: “This is not random speculation but a severe supply squeeze in the metals race. What will absolutely bring this down, at least temporarily, is some form of margin call from a systematic fund due to a volatility event, whether it’s a conflict arising or new tariff trauma which Trump finally follows through on his threats.
“There is a fair bit of leverage built up in the derivatives market on silver now which is identifying this eventual squeeze lower as margin calls would be met, but for now we keep on truckin’ higher with the momentum.”
Tony Redondo, Founder at Newquay-based Cosmos Currency Exchange, said it is risky to invest in metals.
He added: “It is a wild time for the commodities market. This latest surge is fuelled by a ‘perfect storm’ of industrial demand, specifically from the AI, solar, and EV sectors colliding head-on with geopolitical instability. For the global economy, this reflects a massive shift toward ‘hard money’ as investors hedge against inflation and a weakening dollar.
“Gold is currently shadowing this move, trading near $4,900 – analysts expect it to breach the $5,000 milestone later this year as ‘de-dollarisation’ continues. For the average investor, metals serve as a vital insurance policy rather than a growth engine.
“While the rally is exciting, buying at record highs is risky due to ‘overbought’ signals. Financial experts recommend a 5 to 10% portfolio allocation through ETFs or physical bullion. Diversifying now can protect wealth but avoid FOMO and ‘chasing the green’ during price spikes to minimise exposure to sudden market corrections.”
Prem Raja, Head of Trading Floor at Currencies 4 You, explained why silver and gold are flying so high at the moment.
He continued: “Silver is trading at a historic $100 per ounce, marking a 220% year-over-year surge. This rally is fuelled by a perfect storm of factors: deep structural deficits from five years of undersupply, soaring industrial demand for AI infrastructure and solar energy, and a massive flight to safety.
“Geopolitical triggers, specifically US tariff threats over the Greenland dispute and military intervention in Venezuela, have destabilised markets, while China’s export restrictions have throttled supply. For the world economy, this surge signals a ‘debasement trade’ where investors are fleeing fiat currencies for hard assets, potentially driving up costs for the green energy transition and high-tech manufacturing.
“While silver reaches the psychological $100 mark, gold is simultaneously testing $4,960, we are of the view it will break $5,000 pretty quickly.”
Photo by Scottsdale Mint on Unsplash
