Silver’s Historic Surge Continues Unabated

Silber Preis XC0009653103

The price of silver has kicked off the new trading week by extending its record-breaking rally, advancing more than 3% to trade near $63.80 per troy ounce. This places the white metal close to the all-time high of $64.64 it achieved for the first time last week. Since the start of the year, silver has delivered a staggering gain exceeding 120%.

A confluence of powerful fundamental drivers is behind the metal's extraordinary performance. Structurally, the physical market is grappling with a supply deficit. This tightness is evident in the London market, where rising leasing rates and higher borrowing costs for physical silver signal genuine delivery stress. Market experts forecast another annual market deficit for the coming year.

Industrial consumption is a primary engine of demand, with robust and sustained growth from several key sectors. The solar photovoltaic industry, electric vehicle manufacturing, and the expanding infrastructure for artificial intelligence data centers are continuously driving usage higher.

Silver Outshines Gold as Monetary Policy Supports Metals

Silver's rally has dramatically outperformed gold's own strong advance. The gold-to-silver ratio has dropped to 68.08, its lowest level since 2021. The supportive monetary policy environment is adding further tailwinds. The recent 25-basis-point interest rate cut by the U.S. Federal Reserve continues to bolster precious metals. With Fed Chair Powell indicating that further rate hikes are unlikely, the lower interest rate environment reduces the opportunity cost of holding non-yielding assets like silver and gold.

Key Catalysts for the Rally:

• Its formal inclusion on the U.S. government's list of critical raw materials
• A persistent structural supply shortfall in the physical market
• Soaring London leasing rates, pointing to delivery chain stress
• Substantial inflows into silver-backed ETFs coupled with vigorous retail investor demand
• Unabated industrial demand from solar, EV, and data center sectors

Bullish Outlook Intact Despite Brief Pullback

Following the record peak reached last week, a wave of profit-taking emerged on Friday, briefly pushing the price below $62. The sell-off proved short-lived, however. The overarching bullish narrative for silver remains firmly in place, supported by the fundamental supply-and-demand dynamics that suggest the potential for continued strength.