NEW YORK, Jan 20, 2026, 09:06 (EST)
Silver edged just under a new high on Tuesday, after hitting $95.488 an ounce, as investors flocked to precious metals amid President Donald Trump’s latest tariff threat on Europe. By 1131 GMT, spot silver was up 0.7% at $95.308. WisdomTree commodities strategist Nitesh Shah cautioned he remained “a little bit more worried about some of the downside risks,” despite a broader buyer base. 1
Timing is key. U.S. stock and options markets reopen Tuesday following Monday’s full-day closure for Martin Luther King Jr. Day, pushing traders to digest a weekend’s flood of geopolitical news all at once. 2
Investors are pouring money into liquid alternatives such as the iShares Silver Trust (SLV), which aims to track silver prices minus fees and is listed on NYSE Arca. On Jan. 16, SLV closed at $81.02, with daily trading volume near 133 million shares, according to BlackRock fund data. 3
Options traders are seeing premiums spike. On Monday, Saxo Bank’s options strategist Koen Hoorelbeke cautioned that “high implied volatility”—the swings priced into options—can mislead, not simply signal an easy income play by selling options. He highlighted trades like the “zebra,” which blends in-the-money and at-the-money calls to reduce time decay while maintaining a directional bet. 4
In a separate note, Meyka highlighted that the surge to record silver prices is fueling renewed call option interest in SLV and putting miners like Pan American Silver under the spotlight. The commentary pointed to tight supply and industrial demand—particularly from solar—as major factors driving the rally. 5
Volatility has been simmering for weeks. On Jan. 13, FX Leaders analyst Arslan Butt noted the market’s intense focus on U.S. CPI, forecasting annual inflation at 2.7%. He cautioned that even minor surprises could send ripples through currencies and precious metals. 6
Wall Street looked set for a weaker start Tuesday, with the CBOE Volatility Index hitting a two-month peak at 19.69, Reuters reported. “The headlines are going to drive angst and concern about what the future holds,” said David Lundgren, chief market strategist at Little Harbor Advisors. Meanwhile, U.S.-listed precious-metals miners like Hecla Mining and Endeavour Silver saw gains in premarket trading. 7
SLV isn’t the only option. Abrdn’s Physical Silver Shares ETF (SIVR) also follows silver bullion, minus expenses. The sponsor notes a 0.30% annual fee, currently waived but subject to change. 8
But the market that opens doors can just as easily cause damage. If tariff chatter eases, the dollar bounces back, or investors cash out after a sharp rally, silver can dive quickly — and options premiums can collapse just as fast, flipping “cheap exposure” into costly remorse.
At present, SLV’s options activity serves as a stress test for silver: traders are shelling out for both downside protection and upside potential. In environments like this, the calm scenario is usually the one that catches everyone off guard.
