January 24: Silver Blasts Past $100 as Gold Eyes $5,000 Mark
The silver price pierced $100 per ounce for the first time as gold traded near $5,000, driven by safe-haven demand, tariff worries, and tight liquidity. For Singapore investors, this move raises questions on durability, strategy, and risk. We break down what is pushing prices, why a silver supply deficit matters, and how rising margin rules in China may fuel swings. We also outline steps to consider when building exposure in SGD and managing volatility across portfolios.
Why Silver Jumped to $100/oz
A flight to safety, tariff uncertainty, and shifting rate expectations pulled investors into bullion. Gold neared $5,000 and silver spiked, confirming broad demand for hedges. Profit-taking set in after the surge, but flows remain elevated as geopolitics stay tense. See reporting on the milestone and pullback from CNBC. These drivers helped push the silver price to a record.
Tight London float and a widening structural deficit added fuel, while Chinese futures venues raised margins to cool speculation. Thin liquidity can amplify moves in both directions. BullionVault highlights the squeeze across markets and the policy backdrop supporting gold and silver strength here. With supply tight and macro risks high, the silver price can stay volatile as positions reset.
What It Means for Singapore Investors
Singapore offers several routes to precious metals. Investors can use allocated bars and coins from regulated dealers, or consider exchange-traded exposure listed overseas via local brokers. Investment-grade bullion is GST-exempt in Singapore, which helps reduce costs. A disciplined plan matters as the silver price may swing wide. Spreading entries and setting target weights keeps decisions clear when markets move fast.
In spikes, spreads widen and premiums rise, especially for small bars and coins. Storage and insurance add to holding costs, while leveraged products can face margin calls. We prefer unlevered exposure, limit orders, and staggered buys. Consider a written rule for trims on strength and adds on weakness. That helps contain downside if the silver price reverses quickly.
Gold Near $5,000: Cross-Asset Signals
Gold near $5000 supports silver, but the metals are not the same. Gold is the core hedge for policy and currency risk. Silver also carries industrial demand in solar, electronics, and EVs, making it more cyclical. When growth wobbles, that mix cuts both ways. The gold-silver ratio can compress further if momentum lasts, but the silver price can overshoot both up and down.
If the Fed signals earlier cuts, real yields may fall, aiding bullion. A firm USD can blunt gains for non-dollar buyers, while SGD tends to be more stable in regional terms. For Singapore investors, currency effects can add or shave returns. Reviewing FX costs and hedging tools helps align outcomes with your view on the silver price over the next quarters.
Positioning and Scenarios for 2026
We watch three paths. Consolidation with whipsaws as markets digest moves. A bullish extension if deficits widen or policy risk rises. A sharp pullback if margins bite and positioning unwinds. These are frameworks, not predictions. Plan entries and exits ahead of time so a sudden shift does not derail goals tied to the silver price.
Keep sizing modest within a diversified portfolio, such as a small single-digit allocation across bullion and liquid funds. Use dollar-cost averaging, set alerts near key levels, and avoid leverage. Hold a cash buffer for opportunities and stress periods. Rebalance on schedule. These habits help manage the silver price surge without taking on outsized risk.
Final Thoughts
Silver at $100 and gold near $5,000 show how quickly sentiment can turn when fear rises, liquidity thins, and supply looks tight. For Singapore investors, the focus should be on process. Know your product, cost, and storage. Prefer unlevered exposure, stagger orders, and use limit prices. Watch signals that can swing momentum, including margin changes in China, policy headlines on tariffs, and the Fed’s rate path. The structural backdrop still supports precious metals, but the ride will be choppy. A measured plan with clear allocation bands, regular rebalancing, and attention to FX costs can keep your portfolio on track if the silver price whipsaws.
FAQs
Why did silver break above $100 per ounce?
A mix of safe-haven demand, tariff uncertainty, and tight liquidity pushed buyers into precious metals. Reports also point to a widening silver supply deficit and margin changes in China that amplified swings. With gold nearing $5,000, cross-asset momentum added fuel, helping the move above $100 before profit-taking set in.
Is the silver price likely to hold above $100?
It depends on liquidity, positioning, and policy headlines. If safe-haven demand stays strong and the supply deficit persists, support may build. If margin hikes tighten leverage or yields rise, a pullback is possible. We suggest planning for both outcomes with staged buys and pre-set levels for trims.
How can investors in Singapore get exposure to silver?
Investors can use physical bullion from regulated local dealers, or gain exposure via exchange-traded products accessible through Singapore brokers. Investment-grade bullion is GST-exempt. Keep an eye on premiums, storage, and FX costs. Avoid leverage unless you understand margin risks, as the silver price can swing sharply within a single session.
What risks should I monitor after this surge?
Key risks include margin hikes that force deleveraging, a stronger USD, higher real yields, and softer industrial demand. Spreads and premiums can widen during stress. Track policy news on tariffs, central-bank guidance, and liquidity conditions. Having limit orders, cash buffers, and set allocation bands can manage sudden moves.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
