Silver's Explosive Rally: What Drove the Metal From $29 to $70 and What Happens Next

"Silver delivered one of the most explosive commodity performances of the past year, surging 137% from February 2025 to February 2026. The iShares Silver Trust ( NYSEARCA:SLV) climbed from $29.46 to $69.72. A sharp 17.5% selloff in January 2026 tested conviction, triggered by Federal Reserve chair speculation that sent the dollar surging. After the drop, Reddit lit up with loss posts and SLV put option wins."

"The iShares Silver Trust holds $51.5 billion in net assets with a 0.5% expense ratio. Reddit sentiment around SLV swung wildly during the January crash, with r/wallstreetbets posts celebrating SLV put gains alongside stories of devastating losses. One user claimed to have lost two-thirds of their life savings. By mid-February, sentiment recovered to bullish levels (64-68 score range), suggesting retail investors repositioned after the shakeout."

"Silver mining stocks amplified the metal's gains: Miners benefited from both higher silver prices and operational improvements. However, valuations have expanded significantly: First Majestic sits at 164x trailing earnings, while Pan American trades at 33x. Industrial demand continues supporting silver's fundamentals. Solar panel production, AI infrastructure, and electronics manufacturing all require silver, creating structural support. Yet the bigger picture is this: with silver near $70, does the rally have legs or is another correction coming?"

Silver rose 137% from February 2025 to February 2026, with SLV climbing from $29.46 to $69.72 and year-to-date gains masking violent swings. A 17.5% January 2026 selloff followed Federal Reserve chair speculation that strengthened the dollar and prompted widespread retail losses and option trades. The iShares Silver Trust holds $51.5 billion with a 0.5% expense ratio, and retail sentiment recovered to bullish ranges by mid-February. Silver miners outperformed due to higher prices and operational gains, but valuations expanded drastically. Industrial demand from solar, AI, and electronics provides structural support while correction risk persists.

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