Silver Market Defies Volatility with Strong Fundamentals
The silver market has experienced significant price swings in recent times, but beneath the volatility lies a strong foundation. According to Michael DiRienzo, President and CEO of The Silver Institute, investors should not be misled by the fluctuations. In an interview with Money Metals podcast host Mike Maharrey, DiRienzo emphasized that the underlying silver market remains robust.
The price of silver surged to $121 an ounce on January 29, 2026, before plummeting to around $65 per ounce by the time of the interview. However, DiRienzo attributed this decline to external factors such as the outbreak of war in Iran, rather than a reflection of the metal's inherent value.
DiRienzo pointed out that just two years ago, predicting an average 2026 silver price above $72 to $75 per ounce would have been considered extraordinary. Nevertheless, this year has seen the market reach precisely that neighborhood.
One of the primary drivers of silver's strength is its industrial demand, which remains a crucial pillar supporting the metal's value. The Silver Institute expects a small decline in industrial demand this year, primarily due to reduced silver consumption in photovoltaics. However, manufacturers face significant challenges in reducing their reliance on silver, given its superior electrical conductivity.