Silver prices surged to a nearly 14-year high on Friday as mounting geopolitical tensions and renewed safe-haven demand lifted the precious metal, offsetting pressure from a stronger dollar and mixed trading volumes.
Spot silver (XAG/USD) climbed 1.31% to $37.52 per troy ounce, its highest level since 2011, according to FXStreet data. That marks a gain of nearly 30% year-to-date, with the white metal sharply outperforming gold in recent sessions.
The rally gathered momentum after US President Donald Trump warned of sweeping tariff hikes, including a proposed 50% tariff on copper, fueling market volatility and reigniting demand for safe-haven assets like silver and gold. The Gold/Silver ratio fell to 88.88 on Friday from 89.76 a day earlier, indicating stronger relative performance from silver.
In futures markets, September silver contracts on Comex surged to $38.46 an ounce, reflecting a rare and wide dislocation between spot and futures prices. The gap likely stemmed from renewed arbitrage activity, with traders securing metal for shipment to New York-based warehouses.
Minutes from the US Federal Reserve’s June meeting showed a divide among officials over the timing of interest rate cuts, though some expressed openness to easing later this year. Trump has continued to pressure the Fed to lower borrowing costs, further supporting precious metals.
Silver miners rallied alongside the metal. US-lised shares of Hecla Mining Company (NYSE:HL) rose 6.3%, Coeur Mining (NYSE:CDE) gained 5.2%, Pan American Silver Corp. (TSX:PAA, NASDAQ:PAAS) added 3.3%, and Wheaton Precious Metals Corp (LSE:WPM, TSX:WPM, NYSE:WPM) edged up 1.2%.
Junior companies saw even steeper gains in Toronto, with Excellon Resources Inc (TSX:EXN, OTCQB:EXNRF) soaring 13.9%, Aftermath Silver Ltd (TSX-V:AAG, OTCQX:AAGFF) up 12%, Santacruz Silver Mining Ltd (TSX-V:SCZ, OTC:SZSMF) climbing 7.7%, Power Metallic Mines Inc (TSX-V:PNPN, OTCQB:PNPNF) up 5.5% and Arizona Gold & Silver Inc (TSX-V:AZS, OTCQB:AZASF) 3.3%.
The Silver Institute has projected a fifth consecutive annual supply deficit, with rising industrial demand—particularly from the solar energy sector—expected to provide a long-term tailwind.