BBC News: Why Has the Price of Silver Hit a Record High?
Article by Osmond Chia in BBC News
The price of silver has hit a record high ahead of an expected US Federal Reserve interest rate cut and as demand from the technology industry for the precious metal remains high.
Silver crossed $60 an ounce on the spot market, where the precious metal is bought and sold for immediate delivery, for the first time on Tuesday.
Gold, which hit record highs earlier this year as concerns grew about the impact of US tariffs and the global economic outlook, also made gains this week.
Investors tend to move money into precious metals like gold and silver as interest rates come down and the US dollar weakens.
The US central bank is widely expected to cut its main interest rate by a quarter of a percentage point on Wednesday.When interest rates are cut, traders typically buy assets like silver because the benefits of keeping cash in the bank or buying short-term bonds falls, said Yeow Hwee Chua from the Nanyang Technological University.
"That naturally shifts demand toward assets viewed as stores of value, including silver," he said.
The move into so-called "safe-haven" assets was also a key reason for gold hitting new record highs in recent months, as it crossed $4,000 an ounce for the first time.
Silver's rally could also be seen a ......