Silver Price Hits Record High on Supply Fears
Silver surged to a fresh peak of $58.81 per ounce on Monday, continuing last week’s dramatic rally. Traders are betting on persistent supply shortages following the historic London squeeze. Spot inventories at the Shanghai Futures Exchange warehouses dropped to near ten-year lows, intensifying market pressure.
Analysts say increased speculative activity has amplified price momentum. Daniel Hynes of ANZ highlighted ongoing shortages globally, while investors have shifted attention from gold to silver. The six-day consecutive gain positions silver on track to double in value this year.
Increased Investor Bets Drive Silver Price Momentum
Options market activity shows growing bullish sentiment, with the call-put spread on silver futures reaching a peak unseen since 2022. Traders anticipate US Federal Reserve rate cuts, which would boost non-yielding safe-haven assets, supporting further silver gains. Tariff concerns also constrain exports, tightening supply in international markets.
Meanwhile, the gold-silver ratio approaching 70 signals silver’s rising relative cost. BNP Paribas’ David Wilson notes that speculative money continues entering silver markets, reinforcing upward momentum. These dynamics suggest elevated volatility could persist in the coming weeks.
SuperMetalPrice Commentary:
Silver’s record surge underscores the metal’s growing strategic role amid tightening supply and monetary policy expectations. Investors should watch inventory levels, Fed signals, and emerging tariff developments closely. The gold-silver dynamic and speculative inflows may drive short-term spikes, while long-term fundamentals support silver as a hedge in a volatile market.
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