Financial Times: Silver Surges Above $60 for First Time on Global Supply Squeeze
Article by Leslie Hook in Financial Times
Silver prices have punched through $60 per ounce for the first time amid a historic rally driven by a scarcity of supply and a surge in demand from investors.
The metal has more than doubled in price since January, as years of undersupply, compounded by strong demand from industrial users and investors, led to shortages and a severe supply squeeze in October.
Silver jumped 4 percent on Tuesday to reach $60.4 per ounce, a fresh record high. Gold also rose 0.7 percent to reach $4,216 per troy ounce, slightly below the record set in October.
This week expectations of a rate cut by the US Federal Reserve, which meets Wednesday, have boosted precious metals.
“In the very near term, the focus is on the Fed rate meeting,” said Suki Cooper, analyst at Standard Chartered. “Underlying the move is the fact that we have a market that has been undersupplied for the past five years, and we still have regional stocks dislocation,” she added.
Silver is used in jewelry and coins, but demand has also boomed for industrial uses, such as in electronics and solar panels.
Unlike gold, silver is mainly produced as a byproduct of other minerals, so miners have not been able to easily respond to the rising demand in recent years.
In recent months, a huge stockpile of silver has ......