In a historic trading session that has sent shockwaves through global commodity markets, Comex silver futures settled nearly 4% higher today, February 25, 2026, closing at a staggering $90.24 per ounce. The breach of the $90 psychological resistance mark represents a watershed moment for the "devil's metal," which has more than doubled in value over the last 18 months. This latest surge is not merely a speculative rally but the culmination of a decade-long structural deficit meeting an insatiable, price-insensitive demand from the artificial intelligence and green energy sectors.

The immediate implications of this price action are profound. As the silver market enters what analysts are calling a "parabolic phase," the traditional relationship between silver and gold has fundamentally shifted. Silver is no longer trading as "gold’s cheaper cousin" but as a critical strategic asset essential for the backbone of the modern digital economy. With inventories at major exchanges like the LBMA and Comex hovering at decade-lows, the 4% daily jump signals a growing desperation among industrial end-users to secure physical supply before the market enters a total liquidity vacuum.

The Perfect Storm: A Timeline of the Silver Squeeze 2.0

The road to $90 silver began in earnest during the late-2024 breakout, when the metal finally cleared the stubborn $30–$35 resistance levels that had capped gains for years. However, the true catalyst for today’s move can be traced back to January 2026, when the Chinese government implemented a restrictive strategic export licensing system for refined silver. By prioritizing its domestic solar and electric vehicle (EV) industries, China—the world’s largest refiner of the metal—effectively choked off supply to Western markets, triggering the "panic-buying" phase currently witnessed on the Comex.

Throughout the morning session today, high-frequency trading algorithms and institutional buyers fought for position as news leaked of a major "delivery failure" at a European vaulting facility. This sparked a short-covering rally that saw prices gap up from $87.10 to $89.50 within thirty minutes of the New York open. Key stakeholders, including bullion banks and large industrial consortiums, were seen aggressively bidding for the March contract, driving the price past the $90 mark for the first time in history. The initial market reaction was one of stunned disbelief followed by a frantic rotation into silver mining equities and ETFs.

Winners and Losers: The Industrial Margin War

The sudden appreciation of silver has created a stark divide in the equity markets. Primary silver producers are the clear beneficiaries of this pricing paradigm. Companies like Pan American Silver Corp. (NYSE: PAAS) and First Majestic Silver Corp. (NYSE: AG) have seen their valuations soar, with First Majestic reporting record quarterly margins as their production costs remain largely fixed while their output value skyrockets. Streaming and royalty companies, most notably Wheaton Precious Metals Corp. (NYSE: WPM), are also positioned as primary winners, capturing the upside of the price surge without the direct operational risks of mining.

Conversely, high-tech manufacturers are beginning to feel the burn. For companies like Tesla, Inc. (NASDAQ: TSLA) and major solar panel manufacturers such as First Solar, Inc. (NASDAQ: FSLR), silver is a non-negotiable component. While Tesla has attempted to "thrift" silver out of its battery management systems, the metal’s unique conductivity makes it nearly irreplaceable in high-performance EVs. If silver remains above $90, industrial consumers may be forced to choose between eroding their profit margins or passing significant costs onto consumers, potentially dampening the affordability of the green energy transition.

Beyond the Vault: A New Era of Strategic Resource Competition

This event signifies a broader industry trend: the "geopoliticization" of industrial metals. Much like the oil crises of the 1970s, the silver spike of 2026 highlights the vulnerability of global supply chains that rely on a single, finite resource. Silver’s role in the AI revolution is particularly noteworthy. AI infrastructure, led by hardware giants like Nvidia Corporation (NASDAQ: NVDA), requires advanced chips and high-speed connectors that use significantly more silver than traditional servers. As AI companies prioritize performance over cost, they have become the "buyers of last resort," willing to pay any price to keep their data centers running.

Regulatory and policy implications are already emerging. In Washington, there is growing bipartisan pressure to add silver to the United States' Critical Minerals List, a move that would unlock federal funding for domestic mining projects like those operated by Coeur Mining, Inc. (NYSE: CDE). Historically, silver spikes of this magnitude—such as the Hunt Brothers’ attempt to corner the market in 1980—ended in a dramatic crash. However, analysts point out that the 1980 rally was driven by speculation, whereas the 2026 rally is anchored in a massive physical deficit, making a repeat of the "Silver Thursday" collapse less likely.

The Road to $100: Scenarios and Strategic Pivots

In the short term, the market is bracing for extreme volatility. Technical analysts suggest that while the metal is overbought, the "cup and handle" formation on the long-term charts points to a potential target of $120 before the end of the year. The primary challenge for the market will be price discovery in an environment where physical metal is increasingly scarce. We may see a "strategic pivot" from industrial users, who will likely accelerate R&D into silver substitutes like copper-plating, though these technologies are still years away from being viable at scale for high-end electronics.

Market opportunities are emerging in the recycling sector. At $90 an ounce, "urban mining"—the recovery of silver from discarded electronics and solar panels—becomes highly profitable. This could lead to a surge in investment for specialized recycling firms. However, for the next 6–12 months, the dominant theme will be "supply security." We expect to see more downstream companies following the lead of some automakers by signing direct "off-take agreements" with miners to bypass the volatile spot market entirely.

Final Assessment: A Permanent Shift in Value

The settle above $90 is more than just a headline-grabbing number; it is a signal that the era of "cheap silver" is officially over. The combination of a sixth consecutive year of global supply deficits and the explosive growth of the AI and solar sectors has created a floor for prices that was unthinkable just a few years ago. Investors and industrial players alike must now adapt to a world where silver is priced as a strategic technology metal rather than a stagnant precious metal.

As we move forward, the key metrics to watch will be the weekly inventory levels at the Comex and the status of China’s export restrictions. If inventories continue to bleed out at the current rate of 10 million ounces per month, the $100 mark may be breached before the summer. For investors, the coming months will be a test of nerves, but the fundamental underlying story—a world running out of a metal it cannot live without—remains more compelling than ever.

This content is intended for informational purposes only and is not financial advice.