The price of silver is on an explosive run. And it’s fuelling a shortage in physical silver and record breaking demand in the public markets.
What’s happening:
- Silver prices have hit a new all time of $52.50 USD per ounce
Why it matters:
- This is the highest price for silver in more than four decades
Going deeper:
- The silver market in London has been hit with extreme shortages of physical silver, with many dealers unable to actually deliver physical silver and borrowing rates of physical silver soaring by more than 100%
- The demand for silver as a critical material input has also been experiencing a significant boom which has largely been fuelled by an increase in buying from solar companies, electric vehicle manufacturers and even data centres
The intrigue:
- The capital inflows into silver ETFs have also been at all time highs, with net inflows exceeding more than approximately 95M ounces of silver so far this year globally
