Silver prices surged to a record high above $52.50 an ounce, driven by a major short squeeze in London and rising global demand for safe-haven assets. Spot silver rose up to 0.4% to $52.5868 an ounce, surpassing the previous all-time high from January 1980, set during the Hunt brothers’ attempt to corner the market. Gold also reached a new peak, extending its rally for the eighth consecutive week.
A liquidity crunch in London has triggered a global rush for silver, with prices in London outpacing those in New York. This has led traders to ship silver bars via transatlantic flights—typically used for gold—to take advantage of the price difference. The premium narrowed to $1.55 an ounce from $3 last week. Silver lease rates in London soared to over 30% on a one-month basis, raising costs for short-sellers. A rise in Indian demand and earlier shipments to New York depleted London’s silver stocks.
Silver’s smaller, less liquid market—about one-ninth the size of gold—has intensified price swings. Analysts warned that any pullback in investment could reverse gains. Meanwhile, expectations of U.S. rate cuts and geopolitical tensions continue to support precious metal prices.