Silver Historic Rally Continues as U.S. Government Shutdown Fears Mount
Silver has entered uncharted territory, surging above $106 per ounce for the first time in history and extending its 2026 gains to roughly 48%.
What began as a steady advance has now turned into a near-vertical move, catching even seasoned metals traders off guard and forcing a broader rethink of how silver is being valued.
Key Takeaways
- Silver has broken above $106 per ounce, marking a historic milestone and extending its 2026 rally to around 48%.
- Large institutions appear to be shifting from paper exposure to physical silver, tightening available supply.
- Coin shortages and strong technical momentum suggest this is a structural move, not a short-term spike.
The latest leg higher comes as political and financial stress collide. Growing concerns over a potential US government shutdown have reignited demand for hard assets, pushing investors toward precious metals as confidence in fiscal stability wavers. Unlike previous rallies, however, this move appears to be driven by deeper structural forces rather than short-term fear alone.
A shift from paper to physical
One of the most striking developments is the reported repositioning by JPMorgan Chase. According to market chatter, the bank has significantly reduced its long-standing paper silver short exposure and redirected capital into physical silver holdings. The result is what traders describe as one of the largest private stockpiles of silver ever assembled.
This matters because silver has long been dominated by paper contracts that vastly exceed the amount of metal available for delivery. As large players move away from derivatives and into physical supply, pressure builds across the entire pricing structure. In simple terms, fewer ounces are available at a time when more investors want the real thing.
At the same time, United States Mint has flagged shortages in silver coins, reinforcing the idea that physical availability is tightening not just at the institutional level, but also for retail buyers. This combination is fueling the perception that the paper market is starting to crack.
Technical signals confirm the breakout
From a market structure perspective, the charts tell a clear story. Silver has broken decisively above the psychological $100 level, a barrier that capped prices for decades. Momentum indicators such as RSI are elevated, reflecting strong buying pressure, while MACD readings continue to trend higher, suggesting the rally has not yet exhausted itself.
Volume has also expanded during the move, a key detail that distinguishes this surge from short-lived spikes in the past. Rather than a blow-off driven by thin liquidity, the current advance shows sustained participation across multiple timeframes.
More than a trade
What sets this rally apart is the growing belief that silver is being repositioned as a monetary asset, not just an industrial metal or inflation hedge. With government debt concerns rising, trust in fiat systems under strain, and physical shortages becoming harder to ignore, silver is increasingly viewed as part of a longer-term financial reset.
In that context, the move above $100 is less about chasing momentum and more about repricing risk. Investors are no longer asking how high silver can go in the next few weeks, but what it should be worth in a world where paper claims are questioned and physical ownership matters again.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
