Silver prices jumped for a second day near a record as a historic tightening of the London spot market added steam to a rally driven by demand for safe haven assets.
- Neal Bhai’s Big Call: Silver Heading to ₹1.60 Lakh on MCX — Keep Eyes on This One Crucial Level
- Investors Rush to Silver ETFs — But Why the Premium? Expert Insights Inside
- Silver Price Breakout Alert: Neal Bhai’s Crucial Update – Eye on ₹1.60 Lakh and $60 Targets!
- Silver Price Today: Red Alert for Buyers as XAGUSD Nears $49 – Correction Ahead, Key Levels to Watch
Spot silver prices rose as much as 3.7% above $51 an ounce, while the cost of borrowing the precious metal for one month in London soared to an annualized record of 35%. Gold and palladium also rose.
Silver Outshines Gold in 2025
Silver continues to sparkle in global markets, rising more than 75% in 2025, easily beating gold’s gains. Investors are rushing toward the precious metal as they look for safety amid uncertainty in the US economy, fears of a stock market correction, and growing political pressure on the Federal Reserve.
Earlier this year, talks of possible US tariffs on silver caused traders to move large quantities of the metal to New York, leading to a sharp drop in inventories in London. Most of the silver stored in London vaults is used to support exchange-traded funds (ETFs) and isn’t easily available for buying or borrowing.
Unusual Price Gap Between London and New York
Because of this shortage, a usual small premium of a few cents on New York silver futures has now flipped to a discount of more than $2.50 per ounce compared to spot prices. This unusual gap could soon help ease the shortage in London, as traders buy the cheaper US silver and ship it to the UK to sell at higher prices.
Silver Prices Near 1980 Record High
For now, the tight market has pushed spot silver prices close to the $52.50 per ounce record set in 1980. That record came when the Hunt brothers, two wealthy Texas oil traders, tried to control the global silver market by buying more than 200 million ounces, before prices crashed dramatically.
At 11:09 a.m. London time, spot silver was up 1.5% at $50.02 per ounce. Other precious metals also gained, with palladium up 3%, and gold and platinum showing moderate increases.