Silver prices have surged to their highest in decades amid strong demands and limited supply.
On Thursday, October 9, silver rose by up to 4.8%, reaching $51.23 per ounce, the highest price since a famous price spike caused by the Hunt brothers in 1980.
Silver prices have risen about 75% so far this year, even surpassing gold's record gains, according to Bloomberg.
The rise is fuelled by investors seeking safe assets amid worries about US fiscal risk, an overheating equities market and threats to the Federal Reserve’s independence.
Additionally, limited availability of silver in London market has further driven up prices and made it more costly to borrow the metal.
Silver, along with Bitcoin and gold, has gained value because investors see them as safer alternatives compared to major currencies.
On the other hand, silver is valued both as an investment and for industrial uses, particularly in solar panels and wind turbines, which together consume more than half of all silver sold.
“The conversation around debasement, irrespective of its realities, has ignited investors enthusiasm towards gold and silver to the point where regression analysis gives way to something more akin to how investors view AI or the technology sector,” said Kieron Hodgson, commodity analyst at Peel Hunt Ltd.
In 2025, the demand for silver is expected to exceed its supply for the fifth consecutive year.
