The iShares Silver Trust (SLV) rocketed to a fresh all-time high Monday morning as silver blasted past $85, driven by an escalating clash between the White House, the Justice Department, and Federal Reserve Chair Jerome Powell. When the central bank's independence gets called into question, precious metals tend to have a very good day.

Political Drama Sends Precious Metals Soaring

Powell dropped a bombshell in a Sunday evening video, revealing that the Fed had received grand jury subpoenas and what he characterized as threats of criminal indictment over his congressional testimony about the central bank's $2.5 billion headquarters renovation. He called the case a "pretext" for political pressure on interest-rate decisions, which is about as blunt as Fed chairs get.

Markets responded immediately. Equity futures tumbled Monday morning while precious metals went vertical. Gold jumped to record levels, and silver futures spiked roughly 7%, trading above $84 an ounce. Nothing says "flight to safety" quite like investors dumping stocks for shiny metals.

Why Silver Is Outpacing Even Gold

For SLV, which holds physical bullion, the setup couldn't be better. The confrontation raises fears that monetary policy could become subordinate to short-term political goals, increasing the risk of inflation, fiscal dominance, and a weaker dollar if rates are forced to prioritize growth over price stability. In that environment, investors typically seek hard assets with limited supply and no default risk.

Silver tends to amplify gold's safe-haven moves because its market is smaller and more thinly traded, meaning ETF inflows can push prices sharply higher. At the same time, silver's role in solar panels, electronics, and batteries underpins demand even if growth expectations wobble, reinforcing the perception it can hold value when confidence in institutions and an independent Fed is under strain.

Market data shows SLV with a standout Momentum score of 97.15, while its short-, medium-, and long-term price trends all remain firmly positive, underscoring the strength of the current rally.

SLV Price Action: iShares Silver Trust shares were up 7.12% at $77.53 at last check on Monday, trading at a new 52-week high.