What’s Up With The Surge In Silver?

by | Jan 14, 2026 | General

iShares Silver Trust (NYSE:SLV) shares are trading higher on Wednesday. Rising geopolitical risks in the Middle East are pushing investors toward safe‑haven assets, in addition to tensions surrounding Fed Chair Jerome Powell’s investigation.

How Powell’s Legal Troubles Impact Markets

What To Know: Powell revealed in a video posted Sunday night that the Federal Reserve has received grand jury subpoenas, calling them threats of criminal indictment tied to his congressional testimony about the Fed’s $2.5 billion headquarters renovation. He called the case a “pretext” for political pressure aimed at influencing interest‑rate decisions.

The situation has raised concerns that monetary policy could become vulnerable to short‑term political goals. That risk, along with the potential for higher inflation, fiscal dominance and a weaker dollar, tends to push investors toward hard assets like silver, which have limited supply and no default risk.

Silver is also supported by its industrial uses in solar panels, electronics and batteries, reinforcing the idea that it can hold value when confidence in institutions or the Fed’s independence is shaken.

Middle East Tensions Add To Safe-Haven Demand

At the same time, tensions in the Middle East are escalating. President Donald Trump has repeatedly threatened to intervene in Iran amid reports of thousands killed in a crackdown on anti‑government protests, Reuters reported. European officials have warned that U.S. military action appears increasingly likely, with one suggesting it could happen within 24 hours.

Trump has warned that the U.S. could intervene in Iran. In a Tuesday interview with CBS News, he said the U.S. would take “very strong action” if Iran goes through with executing protesters.

A senior Iranian official has said that U.S. bases in regional countries including Saudi Arabia, the UAE and Turkey would be targeted if the U.S. strikes Iran.

The mix of domestic political uncertainty and rising geopolitical risk is pushing investors toward precious metals as a hedge against instability.

SLV Price Action: iShares Silver shares were up 5.29% at $82.68 at the time of publication on Wednesday. SLV hit new 52-week highs this week, according to Benzinga Pro.

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