“Silver tops $50 an ounce for the first time in 45 years amid shortages and market panic – BloombergFor the first time in 45 years, the price of silver rose to $50 an ounce. This happened against the backdrop of record increases
in gold prices and a shortage of supply in the London market.
”, — write: unn.ua
Details
Silver rose by almost 4% in one day, and its value has increased by more than 70% since the beginning of the year, surpassing even the dynamics of gold. Experts explain this by the so-called “debasement trade,” where investors seek protection in Bitcoin, gold, and silver, fleeing from the dollar and inflation risks.
Talk of debasement, regardless of its realities, has ignited investor enthusiasm for gold and silver to such an extent that it now resembles the behavior around tech stocks or artificial intelligence.
– noted Peel Hunt analyst Kieron Hodgson.
The growth is also fueled by a shortage of physical metal, which is stored in vaults serving exchange-traded funds and is practically unavailable to the market.
I think the deficit is a slow burn. The sheer size of the deficit has been so striking, and it takes time for that to manifest in the price.
– explained Metals Focus director Philip Newman.
The situation was exacerbated by the import of silver into the US due to fears of possible tariffs, which further reduced stocks in London and raised the cost of borrowing the metal.
Read: Gold price exceeded four thousand dollars per ounce for the first time – NYT.
Despite the sharp rise, silver has not yet surpassed its historical record of $52.50, set in January 1980 during the Hunt brothers’ speculation. However, experts believe that the current surge could be a prelude to a new phase of the “silver rally.”
Recall
Gold prices in Asian trading on Wednesday exceeded $4000 per ounce for the first time in history. Against this background, experts predict a rise in silver prices as well.
According to fintech expert and co-founder of Concord Fintech Solutions Olena Sosedka, the rising price of gold is a signal for the modern fintech market that although technologies can make finance more convenient, trust is based on values proven over centuries. And geopolitical instability further enhances the importance of gold in the international market.
Wars, trade conflicts, unpredictable decisions of world leaders – all this creates an atmosphere of constant instability, in which gold becomes a universal insurance. So the jump in the value of gold is not just a financial event, it is a marker of investor confidence in the modern economy.
– summarized Olena Sosedka.
She also added that the rising price of gold only means that investors are preparing for a weakening dollar. A weaker dollar makes gold cheaper for international buyers, creating a powerful incentive for its price to rise.