Silver reached US$94 ($140.04) an ounce at the beginning of this week (19 January), hitting a fresh record high following US President Trump threatening to impose new tariffs on eight European nations in a bid to gain control of Greenland.
Last week, President Trump announced an extra 10% tariff on Germany, France, the UK, Netherlands, Finland, Sweden, Norway, and Denmark as of 1 February until a deal on Greenland is reached.
ING reports the tariffs would be increased to 25% by 1 June 2026 if no deal is reached by then. This marks the escalation in what is becoming one of the most critical sources of tension between two allies – US and EU.
President Trump sent an official letter to Norway following the country deciding not to give him the Nobel Peace Prize. The US President stated “I no longer feel an obligation to think purely of peace, although it will always be predominant, but can now think about what is good and proper for the United States of America”.
“The world is not secure unless we have complete and total control of Greenland.”
Over the past month, silver’s price has risen 35.68% and is up 206.40% compared to the same time last year, according to Trading Economics. At the time of writing silver’s price sat at US$93.80 an ounce.
Analysts at CNBC are suggesting US$100 an ounce is achievable – which is not far from silver’s current spot price, as reported by Bullion By Post.
Bullion By Post adds that the strength of the US dollar will be a key driver for the silver price this year. The US dollar index fell toward 99 on 19 January, retreating from multi-week highs and weakening mainly against the safe-haven yen and Swiss franc after the tariff threats imposed by President Trump.
Write to Aaliyah Rogan at Mining.com.au
Images: SchiffGold
