Silver prices have soared to their highest level since March 2012, with spot silver reaching $36.74/oz on June 9 before experiencing a modest correction. The rally represents a 10.71% gain in June alone, significantly outperforming gold’s 1.23% increase during the same period.
Price Performance
Recent market movements show:
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- Spot silver: Peaked at $36.89/oz (June 9) before settling at $36.50/oz (-0.68%) on June 10
- COMEX futures: Reached $37.03/oz intraday before closing at $36.63/oz (-0.44%)
- Year-to-date gains: 26.39% for spot silver, 25.32% for futures
Market Drivers
Analysts identify multiple factors behind silver’s surge:
- Risk-on sentiment: Improved US-China trade relations and strong economic data
- Industrial demand: Renewable energy sector growth boosting consumption
- Investment flows: Increased speculative and institutional interest
- Trade policy concerns: Potential US restrictions on critical metals
Gold-Silver Divergence
The gold/silver ratio continues to narrow as:
- Silver benefits from dual monetary/industrial characteristics
- Gold’s safe-haven appeal diminishes amid market optimism
- Investors establish long silver/short gold positions
Analyst Perspectives
Market experts offer contrasting views:
- Jinyuan Futures: Sees continued catch-up potential for undervalued silver
- Guoyuan Securities: Cites industrial demand and trade policy concerns as key drivers
- Pangoal Yu Fenghui: Notes silver’s higher volatility and economic sensitivity
As Zijin Tianfeng Futures researcher Liu Shiyao observes, “The current risk-on environment has prompted a dramatic shift from safe-haven gold to industrial silver positions among overseas investors.”
Market Outlook
While short-term corrections appear likely after the rapid ascent, most analysts believe silver’s fundamental case remains strong due to:
- Sustained industrial applications
- Ongoing monetary policy uncertainty
- Potential supply constraints
The precious metal’s performance continues to attract attention as it carves an independent path from its traditional relationship with gold.
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