Silver is still brushing up against its all-time high, trading at $57.29 an ounce, and the surge has shoved Fresnillo PLC (LSE:FRES) to the top of the FTSE 100, with the miner’s shares up 4% to 2,741p.
Analysts say the squeeze is tied to rising needs from electric vehicles, AI hardware and solar technology, all of which rely on silver’s high conductivity. With uses expanding and inventories thinning, many expect the metal’s climb to continue.
Indeed, it is so acute that, according to analysts, some buyers resorted to flying in silver to meet demand. They argue the market has a different dynamic this time, one that could keep prices elevated for longer.
The metal’s rally stands out even in a year when gold has smashed through $4,000 an ounce. India has played a large part in silver’s rise, with demand spiking after the monsoon and the Diwali festival.
The country is the world’s biggest consumer, yet imports roughly 80% of its supply, just as London vaults have been rapidly emptying.
Elsewhere, Endeavour, which rose 1.7% as bullion continued to rebound from last month’s pullback.