Silver price soars above US$60 an ounce to new all-time high

Silver breaks above US$60 an ounce for the first time, driven by supply tightness, low inventories and expectations of a US interest rate cut.

The silver price surged to a fresh record on Tuesday as the precious metal continued to attract strong buying amid growing concerns over a market deficit and expectations of looser monetary policy in the United States.

Spot silver jumped as much as 3.6% to a new all-time high of US$60.46 per ounce, extending a record-breaking rally that has been running for nearly two months.

Supply squeeze and tighter global inventories

At the heart of the move is a supply crunch triggered by a historic squeeze in the London market in October. While that episode has eased somewhat in recent weeks, global supply remains tight, with Chinese inventories now hovering near their lowest levels in a decade.

The combination of robust investment demand, industrial use – especially in solar, electronics and green technologies – and constrained supply has reinforced the narrative of a structural deficit in the silver market, supporting higher prices.

Rate-cut expectations fuel safe-haven demand

The latest leg of the rally is also being underpinned by expectations of a US interest rate cut this week, a scenario seen as positive for safe-haven assets such as gold and, by extension, silver. Lower rates tend to weaken the dollar and reduce the opportunity cost of holding non-yielding assets like precious metals.

The white metal “is getting a bid this morning alongside gold ahead of the Federal Reserve meeting, with the market pricing in near-certainty of a 25 basis point cut,” said Trevor Yates, senior investment analyst at Global X ETFs.

Thin liquidity amplifies price swings

Silver first broke above its October peak in a volatile trading session marked by a chaotic trading halt on the Comex exchange in late November, which temporarily dried up liquidity and intensified price moves.

Seasonal factors have also played a role. The holiday period and low physical trading volumes in London’s over-the-counter (OTC) market have made it easier for large orders to move prices, amplifying both intraday swings and the magnitude of the rally.

Silver doubles in value this year, outpacing gold

Tuesday’s surge carries silver through the US$60-an-ounce threshold for the first time in history, cementing its status as one of the standout performers in global commodities this year.

So far, the metal has doubled in value, even outpacing gold’s impressive 60% gain over the same period.

For investors, fabricators and miners, the new record highlights a powerful mix of forces:

• A tight physical market and low inventories
• Expectations of lower interest rates in the US
• Ongoing demand for safe-haven and inflation-hedge assets
• Thin liquidity that magnifies short-term price movements

With silver now trading at unprecedented levels, attention will turn to whether fundamental tightness and monetary policy shifts are enough to sustain prices above US$60 – or whether the market is vulnerable to bouts of profit-taking and volatility after such a sharp run-up.