If you checked your portfolio this morning and saw silver per ounce today sitting around $90.88, you might be rubbing your eyes. Honestly, it's wild. Just a few weeks ago, we were looking at a completely different landscape, and now the "poor man’s gold" is acting like the main character of the global economy.
Silver fell slightly on Friday, January 16, 2026, closing near $89.95, but as we roll through this Saturday, the spot price is hovering just above that $90 mark. It’s a 2% dip from the mid-week highs where it briefly flirted with $93. People are panicking about the "cliff," but if you look at the 12-month chart, silver is up nearly 200%. It’s basically the best-performing major asset on the planet right now.
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Why silver per ounce today is actually a steal (even at $90)
Most retail investors see $90 and think they missed the boat. They're wrong. When you talk to analysts like those at UBS or BMO Capital Markets, the conversation isn't about whether silver is "expensive"—it's about how much of a deficit we're actually in.
We are currently in the fifth consecutive year of a structural silver deficit. That’s a fancy way of saying we’re using way more than we’re digging up. In 2025, the gap was nearly 100 million ounces. For 2026, some estimates suggest the supply-demand gap could widen even further because of three massive shifts:
- The AI Hardware Explosion: Data centers aren't just about chips; they're about conductivity. Silver is the most conductive metal on the periodic table. Every H100 or "Rubin" class chip being pumped out by Nvidia and its rivals requires silver paste and components that simply can't be substituted.
- The Solar Ceiling: We've reached a point where solar cell production is so efficient that it's consuming nearly 20% of the total annual silver supply.
- The Mexico/Peru Mining Slump: Mexico, the world's largest producer, has faced increasing regulatory hurdles and aging mines. You can't just flip a switch and find more silver. Most of it comes as a byproduct of mining copper or lead anyway. If we aren't digging more copper, we aren't getting more silver.
The Gold-to-Silver Ratio is screaming
Historically, the gold-to-silver ratio—the number of ounces of silver it takes to buy one ounce of gold—hovers around 60:1. During the "boring" years, it spiked to 80:1 or even 100:1.
Right now? It’s crashed to 50:1.
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When that ratio drops, it usually means silver is leading the charge. With gold sitting above $4,500 an ounce, silver at $90 actually looks "cheap" to the institutional guys who play the ratio. If the ratio returns to its historical "tight" bull market level of 30:1, we’d be looking at silver per ounce today being closer to $150.
The Trump Effect and the Geopolitical Tug-of-War
Market sentiment took a weird turn yesterday. Silver prices eased because of a "risk-on" rotation. Basically, President Trump’s comments about stepping back from certain military actions and his confirmation that he won't be firing Fed Chair Jerome Powell calmed the markets.
Safe havens always take a hit when people feel "safe."
But don't let the 48-hour window fool you. The underlying "debasement trade" is very real. Nations are moving away from fiat currencies and toward hard assets. Sprott analysts are calling 2026 the year of "resource nationalism." Countries like China have already started tightening export certificates for silver. They want to keep the metal inside their borders for their own EV and tech industries.
If you're a manufacturer in the US or Europe, that's a nightmare scenario. You'll pay $100, $150, or $200 an ounce if it means keeping your assembly line moving. Industrial demand is "price-insensitive." A Samsung solid-state battery needs that silver regardless of whether it costs $30 or $300.
What about the "Meme" factor?
It's kinda funny, but silver has regained its status as a social media darling. We're seeing "stacking" videos go viral again, similar to the 2021 silver squeeze, but this time it's backed by actual math rather than just Reddit bravado. When the LBMA (London Bullion Market Association) vaults show a 50% drop in holdings since their 2021 peaks, it’s not a conspiracy theory. It’s a liquidity crisis.
How to play the current silver market
If you're looking at silver per ounce today and trying to decide your next move, you have to be honest about your timeline. This is a high-beta play. It moves fast, it breaks hearts, and it's not for people who check their phone every ten minutes.
- Watch the $86 Support Level: If we have another "peace breakout" and the price drops, $86 is the floor. If it holds there, it's a massive "buy the dip" opportunity.
- Physical vs. Paper: Premiums on physical coins like American Silver Eagles are currently sitting at 20-30% over spot. That's a huge bite. If you're just trading the price action, ETFs like SLV or PSLV (Sprott Physical Silver Trust) are much more liquid.
- The Mining Leverage: Companies like First Majestic or Pan American Silver are seeing their earnings explode. Because their costs are relatively fixed, every dollar silver rises goes straight to their bottom line.
Honestly, the era of $20 silver is dead. We are in a new paradigm where silver is a "critical mineral," not just a pretty metal for jewelry. Whether it hits $200 this year is up for debate, but the floor has definitely moved up.
Actionable Insights for Investors
- Dollar-Cost Average (DCA): Don't go "all in" at $90. The market is stretched. Buy a little every Tuesday, regardless of the price.
- Monitor the DXY: If the US Dollar Index starts to weaken further against the Euro or Yen, silver will likely slingshot past $100.
- Inventory Check: Keep an eye on COMEX registered stocks. If they continue to bleed out at the current rate of 2-3 million ounces a week, a "forced" price re-rating is inevitable by Q3 2026.
Immediate Next Steps:
Review your current precious metals allocation. If you are "gold heavy," consider rebalancing into silver while the gold-to-silver ratio is still above 40. Check the live bid/ask spreads at a reputable dealer like JM Bullion or SD Bullion before committing to physical delivery, as premiums are currently highly volatile.