Silver (SLV) prices are holding firm above the psychologically important $100-per-ounce mark today, with spot levels hovering in the low-$100s as traders digest another leg of the metal’s remarkable run. The move caps off an extraordinary period for silver, which surged 138% last year and has remained elevated in recent sessions.
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Part of what makes silver’s rally so dramatic is not just demand, but the way the market is structured. In a recent research note, Goldman Sachs’ commodities strategists argued that silver’s extreme price swings are being amplified by unusually tight inventories in key trading hubs, particularly London, where much of the world’s benchmark pricing is set.
“Extreme price action is likely to persist,” the bank warned, pointing to thin available supply and reduced market liquidity as key drivers of volatility.
Goldman explained that concerns over potential trade restrictions and tariffs last year triggered a rush to move physical silver into the United States, draining stocks from London vaults and distorting the global flow of metal. That shift has made prices far more sensitive to incremental buying and selling. According to the bank, levels of weekly demand that would historically move prices by about 2% are now capable of driving swings closer to 7%, simply because there is less readily available metal to absorb those flows.
Crucially, Goldman does not see the rally as proof of a fundamental shortage of silver. Instead, the strategists describe the market as suffering from a “location problem” rather than a production problem – silver exists, but not always where the trading system needs it most. Until inventories are rebuilt and liquidity improves, the bank believes sharp rallies and pullbacks are likely to remain a defining feature of the market.
Recent developments appear to support that view. Ongoing geopolitical tensions have kept safe-haven demand alive, while expectations for lower U.S. interest rates have increased the appeal of precious metals more broadly. At the same time, policy changes affecting metal exports and physical supply chains continue to inject uncertainty into the market, reinforcing the conditions Goldman says can exaggerate price moves.
Is Silver Worth Buying Right Now?
A look at TipRanks’ technical analysis dashboard suggests silver is tilting bullish overall. In the one-day summary, 15 indicators point to a Buy signal, compared with just one Neutral and six Bearish readings. The strength is coming primarily from moving averages, which flash a Strong Buy with 12 Bullish signals and none Bearish, even as oscillators lean the other way with a Sell reading.
