Silver prices climbed above $39 an ounce Monday morning, touching their highest level since February 2012, amid renewed investor interest and robust industrial demand. The precious metal’s upward trajectory comes as gold also holds near record levels, underscoring persistent concerns over inflation, potential Federal Reserve easing, and resilient manufacturing demand for metals.
As of 10:00 AM ET, spot silver traded at $39.12 per ounce, according to the latest data from the London Bullion Market Association (LBMA). Gold hovered around $2,424 per ounce, maintaining its recent gains after hitting an all-time high of $2,450 last week.
Peter Schiff, chief economist and global strategist at Euro Pacific Capital, highlighted the significance of silver’s quiet climb in a tweet Monday.
Silver’s last significant peak came in April 2011, when it briefly surged to nearly $50 an ounce, a level not seen since the Hunt brothers’ infamous attempt to corner the silver market in 1980. (Source: LBMA historical prices)
Analysts say the latest rally is fueled by expectations of continued robust demand from green energy sectors, including solar panel manufacturing, electric vehicles, and electronics. According to the Silver Institute, industrial fabrication accounted for more than 50% of global silver demand in 2023.
Meanwhile, Bitcoin rose above $72,000 on Monday, briefly setting a new record high before pulling back slightly. Schiff’s tweet reflects a broader debate among investors about the role of hard assets versus digital currencies as alternative stores of value.
“Physical silver remains critical to key industries. Unlike Bitcoin, which is primarily speculative, silver has tangible industrial applications that make supply and demand fundamentals more impactful,” said David Morgan, publisher of The Morgan Report, which tracks trends in precious metals.
Looking ahead, market watchers will be focused on upcoming U.S. inflation data and any fresh signals from the Federal Reserve on the future path of interest rates. Lower rates could weaken the dollar and further boost precious metals prices.