Silver prices surged to new highs on Monday, climbing 5% in early trading as investors piled into precious metals amid a strong gold rally and mounting supply constraints in the physical market.
In New York, silver futures reached $49.63 an ounce, while spot gold jumped 2.7% to $51.66, underscoring heightened demand for safe-haven assets in an uncertain macroeconomic environment.
Analysts at Goldman Sachs said silver continues to ride the same wave of investment flows supporting gold as the Federal Reserve cuts rates. “However, in the near term, we see greater volatility and downside risk than for gold, reflecting silver’s smaller and less liquid market,” they noted.
Silver lease rates — a key gauge of the cost to borrow the physical metal — spiked over 35%, according to traders, as buyers paid record premiums to secure immediate delivery. The surge reflects a tightening in available stocks at London vaults, driven by growing speculative demand.
In other precious metals, platinum futures rose 3.3% to $1,676.90 an ounce, adding further momentum to the sector’s rally.
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