iShares Silver Trust (NYSE:SLV) shares are jumping on Monday as silver prices break into new all‑time highs, fueled by rising geopolitical tensions and growing worries about global financial stability.
The latest spark came over the weekend, when President Donald Trump warned he would slap a 100% tariff on Canada if it moves ahead with a new trade agreement with China. Canadian Prime Minister Mark Carney recently traveled to Beijing and reached a preliminary deal that would cut tariffs on Chinese electric vehicles in exchange for reduced duties on Canadian canola.
China pushed back on Monday, saying its arrangements with Canada "are not targeted at any third party," and urged countries to approach international relations with a "win‑win, not zero‑sum" mindset, Reuters reported.
Another Government Shutdown?
The U.S. is once again on the brink of a government shutdown, barely two months after the record‑setting 43‑day closure in late 2025. Trump warned that "we're probably going to end up in another Democrat shutdown."
Tensions escalated following Senate Democrats' decision to block funding for the Department of Homeland Security after a fatal shooting in Minneapolis involving U.S. Border Patrol agents.
Prediction markets are now heavily pricing in a shutdown on Jan. 31. More than $8 million has been wagered on Kalshi's "Government shutdown on Saturday?" contract, with bettors assigning a roughly 77% probability that federal agencies will partially close.
Fed Meeting Adds Another Layer Of Uncertainty
The Federal Reserve meets this week and is widely expected to keep interest rates unchanged. But the meeting is being overshadowed by a Trump administration criminal investigation into Fed Chair Jerome Powell, cited Reuters. Trump has repeatedly pressured Powell to cut rates.
"We're seeing a wave of first‑time investors driving this surge in precious metals," said Adrian Ash, head of research at BullionVault. "Private investors across Asia and Europe are rushing to build their personal holdings of gold and silver."
SLV Price Action: iShares Silver Trust shares were up 12.86% at $104.71 at the time of publication on Monday. The stock is trading at a new 52-week high, according to Benzinga Pro.
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