Gold and silver coins, PHOTO: Shutterstock
The price of silver continued its appreciation on Wednesday, after on Tuesday it exceeded the threshold of 60 dollars per ounce for the first time, against the background of restrictions on the offer as well as bets on a new relaxation of the monetary policy by the American Federal Reserve, reports the Bloomberg agency, quoted by Agerpres.
The white metal appreciated by 1.6% on Wednesday, reaching a record of $61.6145 per ounce. Its rapid advance in recent days has been supported by speculative bets that the US central bank will decide to cut its benchmark interest rate by a quarter point at the end of its December 9-10 meeting. Lower borrowing costs are usually a favorable factor for precious metals. In bond markets, global yields rose to highs last seen in 2009.
“Silver has a speculative foundation. Once you have upward momentum, it tends to bring in more money,” said David Wilson, chief strategy officer at BNP Paribas SA.
Meanwhile, the market is also looking beyond this week's Fed decision for clues about US monetary policy next year. Kevin Hassett, President Donald Trump's favorite to replace Jerome Powell as Fed chairman, said on Tuesday there is room for a substantial rate cut.
The rise in the price of silver is not due to a single factor
Silver has more than doubled in value this year, eclipsing the 60% rise in gold, whose price has in turn broken record after record in 2025. Silver's gains accelerated after a historic supply crunch in October. Although this crisis has eased, as more silver finds its way into London's vaults, interest rates remain high, a sign of lingering restrictions. Other markets are now facing supply constraints, with Chinese inventories at decade lows.
The increase in silver quotes was also supported by inflows of exchange-traded funds. Last week, more money went into silver-backed ETFs than any other week since July. Buying volumes for the largest fund of its kind rose on Tuesday to a level similar to that seen during the supply crisis, showing that investors are positioning for further growth.
Given the roughly 20% rise over the past three weeks, logically we should see a correction. But given the strong positive sentiment in the market at the moment, with some talking about a $100 silver quote, it is quite possible that the momentum will continue,' David Wilson believes.
