Silver prices surged to a record $60 per ounce on Tuesday, propelled by expectations of US interest rate cuts, a weaker dollar, and persistent supply constraints, marking a dramatic rally in the metals market.
Silver futures rose above $60.50, extending their year-to-date gain to 107%, while gold has climbed more than 60% this year, trading just over $100 below its October all-time high.
“The solar industry has become the number one industry demanding silver,” Tariq Al-Rifai, an international financial analyst, told Proactive, noting that industrial demand, particularly from solar energy, is helping drive prices higher amid tight global supply.
Chinese silver inventories are now at their lowest level in a decade, while a historic squeeze in the London market last October has added to supply concerns.
Investors are also eyeing a potential US rate cut this week, which could support safe-haven assets like gold and silver. The current gold-silver ratio stands around 81, suggesting “the price of silver still has room to go higher compared to gold,” Al-Rifai said, adding that the rally could continue into 2026 or 2027.
Silver-focused exchange-traded funds surged on Tuesday, with the abrdn Physical Silver Shares ETF up 3.7% and iShares Silver Trust up 3.6%.
Mining stocks followed the rally: Pan American Silver Corp. (TSX:PAA, NASDAQ:PAAS) advanced 10%, Hecla Mining Company (NYSE:HL) rose 7.1%, Coeur Mining (NYSE:CDE) climbed 4.5%, Silvercorp Metals Inc (TSX:SVM, AMEX:SVM) gained 4.7%, and Endeavour Silver Corp (TSX:EDR, NYSE:EXK) added 3.4%.
Smaller developers also saw strong gains, with Aftermath Silver Ltd (TSX-V:AAG, OTCQX:AAGFF) up 14.1%, Silver Range Resources Ltd (TSX-V:SNG, OTC:SLRRF) rising 8.7%, and Pinnacle Silver & Gold Corp (TSX-V:PINN, OTCQB:PSGCF) increasing 4.6%.