Key Facts: - Price: Silver was trading near $52.6 per ounce, an all-time high, breaking January 1980 recordsscmp.com. - Year-to-Date Gain: Silver has surged roughly 70% in 2025, far outpacing goldreuters.commining.com. - Recent Breakouts: The metal set successive records in early October: ~$49.57reuters.com, ~$51.22reuters.com, and ~$51.70reuters.com, culminating around $52.59 by Oct 14scmp.com. - Supply Crunch: A historic shortage of physical silver in London is driving the rally. Traders report COMEX longs are out by 220 million ounces, and London lease rates spiked as inventory tightenseconomictimes.indiatimes.commoneycontrol.com. - Market Drivers: A “perfect storm” of factors – Fed rate cut bets, dollar weakness, inflation hedging, geopolitical turmoil and robust industrial demand – has fueled safe-haven flows into silverts2.techts2.tech. - Investor Sentiment: Record ETF inflows and FOMO among speculators have amplified gains. Major banks now forecast far higher prices: BofA sees $65/oz by 2026reuters.com and HSBC expects silver to eclipse $50/oz imminentlyts2.tech. - Warnings: Analysts note silver’s thin market and lack of a “central bank bid” could make rallies volatilemoneycontrol.commining.com. Goldman Sachs warns even a pullback in flows could trigger a sharp correctionmoneycontrol.com.
