Silver Prices Surge to Reach Highest Level Since 2013, Exceeding $30 per Ounce

Spot silver prices surged past $30 an ounce, reaching their highest level in over a decade, closing at $31.49 an ounce on Friday. This marks a 6.5% increase and the highest price since February 2013. The precious metal has seen a remarkable 32% surge this year, outperforming gold and becoming one of the top-performing major commodities.

The rally in silver prices can be attributed to increased investor interest, a supportive macroeconomic environment, and a projected fourth consecutive annual market deficit. The price surge was further fueled by positive sentiment in the broader metals markets, with copper and gold also nearing record highs.

Phil Streible, chief market strategist at Blue Line Futures, noted that this week saw a resurgence of interest in silver among speculative traders, reminiscent of the meme stock frenzy earlier this year. Silver was a favored target of Reddit retail traders in 2021 during the GameStop buying frenzy.

The breakthrough of silver prices above $30 could trigger significant buying activity by exchange-traded funds, potentially leading to a silver squeeze, according to TD Securities senior commodity strategist Daniel Ghali. Despite this rally, silver remains relatively inexpensive compared to gold.

Silver’s dual nature as both a financial asset and an industrial input, particularly in clean-energy technologies like solar panels, has contributed to its increasing demand. The metal is expected to see record usage this year, with the market facing a fourth consecutive year of deficit. This year’s shortage is projected to be the second largest on record.