May 13, 2026
The silver price is hovering around $88 per troy ounce on Wednesday afternoon, holding on to the recent recovery trend. After the historic crash from January's all-time high of $121.64 down to roughly $60 in March, the white metal is slowly but steadily working its way back. Earlier this week, silver briefly jumped more than 6% to $85.5 per ounce – the highest level in nearly two months, before consolidating on Tuesday and Wednesday.
Compared with twelve months ago, the silver price is now trading roughly 163% higher and has firmly established itself as one of the top performers across the commodity space. The question on investors' minds: Is this level the launchpad for another push into triple digits – or is another setback looming?
Silver Price Caught Between the Hormuz Crisis and the Fed Brake
The market is currently caught between two dominant forces. On the bullish side: persistent geopolitical risk. The Strait of Hormuz remains closed, and US President Donald Trump described the ceasefire with Iran as being on "massive life support". Oil prices remain elevated, supporting safe-haven demand for precious metals.
But here is where things get tricky: US consumer prices climbed to 3.8% in April – the highest reading since May 2023 – while core inflation also came in above expectations at 2.8%. That pushes any near-term monetary easing further out of reach. Futures traders are now pricing in a probability of more than 70% for a Fed rate hike by April 2027; rate cuts in 2026 are largely off the table.
For the silver price, this setup is delicate: higher real yields and a firm US dollar lift the opportunity cost of holding a non-yielding metal. Should upcoming inflation and labor market data again surprise to the upside, a short-term pullback toward $80 cannot be ruled out.
Structural Deficit Underpins the Long-Term Outlook
Despite the headwinds from the rate front, the fundamental picture remains exceptionally strong. Analysts expect a supply deficit of around 67 million ounces in 2026 – already the sixth consecutive year of shortfall. Industrial demand from photovoltaics, electric mobility, medical technology, and semiconductor production now accounts for roughly 55 to 60% of global silver consumption.
The gold-silver ratio is also flashing an interesting signal. Currently at around 58, after a low of 43, it has clearly recovered but still sits just above the long-term historical average. In previous late-cycle precious metals phases, this ratio tended to compress further – a hint that silver may still have catch-up potential relative to gold.
From a chart perspective, the $88 zone is decisive. Only a sustained move above the resistance band near $90 would clear the path back into triple-digit territory. Industry heavyweights such as First Majestic Silver CEO Keith Neumeyer consider triple-digit prices sustainable over the long term.
After the crash and rebound, the silver price is now facing a decisive test. In the short term, Fed expectations and a strong dollar dominate the picture; over the medium term, supply scarcity and industrial demand provide a solid floor. For trend-oriented investors, the area around $88 therefore remains a highly interesting zone – with substantial upside potential, but also the need to keep a close eye on geopolitical and macroeconomic risks.
Source：https://goldinvest.de/en/silver-price-today-stabilizing-at-usd88-is-the-next-breakout-coming
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