Silver ETFs Surge Up to 17% in Sharp Rebound, But Will the $100 Hurdle Stop the Rally?
The global silver market is booming with renewed investor interest as Silver ETFs rally sharply and silver prices climb toward critical thresholds. Across markets, exchange-traded funds linked to silver have jumped up to 17 percent on a single trading session, led by standout performers like the Tata Silver ETF, as spot prices approach the psychological $100 per ounce level.
At the same time, silver’s 2025 performance has been extraordinary. Spot silver has more than tripled from roughly $30 per ounce a year ago to near $90 + levels in early 2026, with major ETFs up almost 190 percent in the past year.
This sharp rebound raises an essential question for investors: Can silver break and sustain above $100, or will that level represent a major ceiling for the rally?
Why Silver ETFs Are Attracting Record Capital
Silver ETFs offer investors a liquid way to participate in silver’s price moves without holding physical metal. In 2025, this vehicle became one of the top-performing asset classes globally.
Historic Outperformance
- In 2025, silver prices jumped around 160 percent, from about $29.24 to near $76 by year-end. Silver ETFs mirrored this surge, with many funds delivering 143 percent to 157 percent returns over one year.
- For context, benchmark equity indices like India’s Sensex and Nifty returned under 10 percent in the same period.
Growing ETF Holdings
Global silver ETF holdings rose significantly in the first half of 2025. According to industry data, 95 million ounces of silver flowed into ETFs through H1, pushing total holdings to over 1.13 billion ounces and lifting total ETF value above $40 billion.
This influx reflects both institutional and retail demand, as investors seek hedges against inflation, currency weakness, and market volatility.
Silver Price Rally: Key Facts and Figures
Silver’s recent price action supports the ETF surge:
- Silver has climbed over 25 percent already in 2026 following a near 150 percent rally in 2025, making it one of the strongest performing precious metals in decades.
- On major commodity exchanges, spot silver hit fresh local records, in India, futures prices topped ₹3,07,163 per kilogram, breaking previous boundaries.
- Rising geopolitical tension, expectations of rate cuts from central banks, and industrial demand from solar, EVs, and electronics all support silver prices.
Analysts emphasize that silver’s rally is not solely speculation: scarcity in supply, strong industrial demand, and ETF inflows are all contributing to the strong upward price movement.
The Psychological $100 Barrier
The $100 per ounce level is more than just a number; it is a major psychological resistance point for traders and institutional investors.
Why $100 Matters
- Traders often place significant sell orders near major round figures, leading to resistance and profit-taking pressure.
- Some industry figures, including mining executives, have publicly stated that $100 is a realistic long-term target for silver, reinforcing its importance as a technical ceiling.
If silver breaks convincingly above $100 with broad market support, it could trigger additional inflows and a new phase of bullish momentum. However, failure to hold above this level might lead to increased volatility and profit booking.
Comparing Silver ETFs with Other Asset Classes
Silver’s 2025 performance has outpaced many traditional investments:
- Silver ETFs often topped 150 percent returns in 2025.
- Gold ETFs also saw substantial gains but were outpaced significantly by silver’s rally.
- Major equity indices and volatile stock sectors like tech saw more moderate growth during the same period.
This performance chart suggests that silver’s dual role as both an industrial metal and safe-haven asset makes it unique among mainstream investment categories.
Risks Despite Strong Momentum
Despite the compelling uptrend, investors must consider risks:
- Sharp corrections are possible. Some silver ETFs recently experienced steep one-day drops of up to 20 percent, indicating high volatility.
- A strengthening U.S. dollar or delayed rate cuts could dampen precious metal demand.
- Premiums over net asset value in some ETFs point to supply constraints and trading mismatches, which may correct sharply.
These factors highlight the need for disciplined entry strategies and risk management when allocating to silver-linked funds.
Outlook: Can Silver Maintain Its Momentum?
The consensus among many market observers is cautiously optimistic. Industrial trends, clean energy demand, and macroeconomic pressures all suggest continued support for silver.
Importantly, Silver ETFs will remain a primary channel for investor exposure. Their continued growth in assets under management, and their strong performance compared to other ETFs, underscores investor confidence in silver’s future prospects.
The upcoming test at $100 per ounce may determine the next major trend phase. If broken decisively, technical and fundamental forces could align for further gains.
Frequently Asked Questions
Rapid price increases, strong ETF inflows, macroeconomic uncertainty, and industrial demand have all contributed to major Silver ETF gains.
Several industry figures and analysts see $100 as a valid long-term target, reinforcing its psychological significance.
Silver ETFs can be more volatile due to commodity price swings and speculative trading, requiring thoughtful risk management and long-term perspective.
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.
