Silver prices soared to unprecedented levels on Monday, jumping 5% in early trading as a powerful rally in gold and tightening liquidity conditions amplified bullish sentiment across precious metals markets.
Futures for silver in New York surged to $49.63 an ounce, while spot gold advanced 2.7% to $51.66, reflecting strong investor demand for safe-haven assets.
Analysts at Goldman Sachs said silver is poised to benefit from ongoing capital inflows into precious metals as the Federal Reserve cuts interest rates. “However, in the near term, we see greater volatility and downside risk than for gold, reflecting silver’s smaller and less liquid market,” they added.
Lease rates for physical silver — the cost investors pay to borrow the metal — spiked more than 35%, according to market observers. Demand for immediate delivery has pushed premiums to record highs, underlining the tight availability of silver bars in London vaults as speculative interest surges.
Elsewhere in the precious metals complex, platinum futures climbed 3.3% to $1,676.90 an ounce, extending the rally.
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