Silver Prices Surge to Highest Level in Nearly 14 Years
Silver prices have reached their highest point in almost 14 years, driven by concerns over U.S. tariff regulations, increased tensions in spot markets, and a rising interest in gold alternatives.
As of 1354 GMT, spot silver climbed 0.3% to $39.40 per troy ounce, marking the highest level since September 2011.
This year, silver—both as a precious and an industrial metal—has seen a remarkable 36% increase, surpassing gold’s growth of 31%. Silver’s previous high was recorded at $49 in 2011.
President Donald Trump’s decision to introduce a 50% import duty on copper starting August 1, alongside expanded duties on U.S.-Mexican imports, has increased premiums on U.S. futures for silver and other metals in London, leading to a rise in lease fees in spot markets.
While gold, silver, platinum, and palladium were not included in Trump’s April tariffs, Nicky Shiels, head of metals strategy at MKS PAMP, notes that the broader market isn’t responding in the expected manner, somewhat echoing trends seen in Comex Copper.
Shiels also suggested that silver prices could potentially hit $42 per ounce this year.
Analysts indicate that the industrial demand for silver remains robust, continuing a trend toward its fifth year of structural deficit in the market. Investment demand is also accelerating as silver becomes a more affordable alternative to gold.
The recent rise in silver prices has strengthened its gold ratio to its best level in seven months. Presently, it takes 87 ounces of silver to purchase an ounce of gold, down from 105 ounces earlier.
A London-based precious metal trader commented that copper tariffs have triggered unusual market dynamics affecting other metals. However, they predict that lease fees in the spot market may decline as borrowing activities decrease due to tariff fears.
Nitesh Shah, a commodity strategist at WisdomTree, mentioned that current momentum could push prices over $40 in the near future. However, with growing positioning, he wouldn’t be surprised if prices dipped back to $35 before seeing $45 per ounce again next year.
