Jakarta, hitclubapk3 Indonesia
—
Price
silver
set an all-time high of US$61.85 per
troy ounce
as of Thursday (11/12).
This makes silver the precious metal commodity with the strongest performance this year with a jump of 113 percent.
This significant increase was driven by increasing industrial demand, dwindling global supply, and silver’s new status as a critical mineral in the United States (US).
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Reported
Reuters
, the price of the silver futures contract approached US$61 after briefly touching the intraday level of US$61.06.
This spike occurred when the market estimated an 87 percent chance of cutting interest rates by the US central bank The Federal Reserves (The Fed) by 25 basis points, a condition that generally makes precious metals more attractive and puts pressure on the US dollar.
This expectation was answered after Fed Governor Jerome Powell announced a cut of 25 bps to the level of 3.50-3.75 percent.
So far this year, silver prices have jumped almost 109 percent, far surpassing gold which has risen around 60 percent.In the physical market, supply shortages further fueled silver’s rally.The most extreme conditions occurred in London last October.
“There is no liquidity available. What is happening in the silver market is truly unprecedented,” said Greenland Investment Management Chief Investment Officer Anant Jatia, as reported by
Forbes
.
SP Angel analysts also assess that the movement in silver was not only driven by industrial demand, but also speculative flows which strengthened after the gold price was corrected.
“We think silver’s strong performance reflects speculative flows into more highly leveraged assets after gold corrected,” they wrote.
They added that the silver market was also driven by very tight supply conditions after the supply squeeze in October.
The strengthening of silver prices was also strengthened after the US Geological Survey included this metal in its list of critical minerals in November.
The designation suggests silver is considered vital to the U.S. economy and potentially faces the risk of supply disruptions and new tariffs, which is increasingly attracting investor interest.
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